The Corporate Transparency Act (CTA) was signed in January 2021 and administered by the Financial Crimes Enforcement Network (FinCEN) in. This law is designed to combat illicit business activities, such as money laundering and terrorist financing, and to prevent the formation of shell companies. As a result, LLCs, corporations, and similar entities are required by law to report Beneficial Ownership Information (BOI) on their owners to FinCEN. Reporting is done directly through FINCEN’s website: www.fincen.gov/boi On February 19, 2025, a federal court lifted the last remaining nationwide injunction stopping BOI filing requirements granted in Samantha Smith and Robert Means v. U.S. Department of the Treasury, No. 6:24-CV-336 (E.D. Texas 1/7/25). FinCEN, enforcing BOI requirements under the CTA, has extended the filing deadlines for initial, updated and corrected BOI reports to March 21, 2025. Companies with previously assigned deadlines later than March 21, 2025, can adhere to their originally set deadline.
The Tax Cuts and Jobs Act (TCJA) of 2017 included major changes to the Internal Revenue Code, but many of them are set to expire after December 31, 2025. There are several individual income and business tax provisions that will expire, but most notably the Estate and Gift tax basic exclusion amount is set to decrease dramatically. Although Congress may pass new legislation that may extend some of these provisions, it is important to be aware of them and plan accordingly. If you have not spoken with your estate attorney recently, 2024 will be a good year to speak with them and review your estate plan. Click on the link below to read more about the tax provisions set to sunset.