J. R. Armstrong with May & Company spoke at the Vicksburg Kiwanis meeting this past week.

Armstrong discussed the Corporate Transparency Act. In 2021, Congress passed the Corporate Transparency Act.

The act requires many businesses in the U.S. to report information about their beneficial owners to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

The reporting phase began Jan. 1, 2024. Businesses required to report must do so by the end of 2024 or face fines of $591 a day.

There are several reporting exemptions, but many small businesses are required to report, Armstrong explained. The reporting is relatively easy; however, the information must be kept current or the business will be fined.

Armstrong said May & Company will not report this data for their clients, nor will most CPA firms.

Anyone qualifying as a beneficial owner in a business needs to learn more about this requirement to ensure that their business complies with the law, he said.