The agency says it won't boost audits of people making less than $400,000, but that gets tricky amid the record number of small businesses formed during the pandemic

The Corporate Transparency Act (CTA) is going into effect on January 1, 2024, impacting millions of small businesses across the U.S. Knowing the intricacies of this act and its potential impact is essential for small businesses.

The Corporate Transparency Act (CTA), enacted in 2021, was passed to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. It is designed to capture more information about the ownership of specific entities operating in or accessing the U.S. market.

Whenever the term “voluntary” is used when discussing taxes, the tendency is for the audience to bust out laughing. Okay, sure, but it’s a real concept that used to be the heart of our tax system. Rather than send tax collectors door-to-door to make collections, our system relied on taxpayers calculating their own liability and then sending in the appropriate amount….

A DOJ statement appears to refer to IRS data that ProPublica has used to publish multiple stories on thousands of wealthy Americans. ProPublica maintains it does not know the source of the information.

The Corporate Transparency Act is intended to provide law enforcement with beneficial ownership information for the purpose of detecting, preventing and punishing terrorism, money laundering and other misconduct through business entities.