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art werner: navigating the corp. transparency act | quick tax tip

the new responsibility for tax professionals is also a chance to grow your practice and billable hours.

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as a tax professional, you are already well-versed in dealing with the complexities of the internal revenue service (irs). however, a new player in the compliance landscape requires your attention: fincen—the financial crimes enforcement network.

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while fincen has long been responsible for monitoring financial activities related to money laundering, organized crime, and terrorism, a new regulation—the corporate transparency act (cta)—has expanded its reach. effective january 1, 2024, this law requires businesses to report beneficial ownership information (boi) to fincen, creating a new compliance responsibility for which tax professionals must be prepared.

related: fincen calls a much needed time out for beneficial ownership information reporting while congress mulls changes “on february 27, 2025, fincen announced that no enforcement actions (read: fines and penalties) would take place for noncompliance with the requirements until at least the u.s. treasury department promulgated new guidance. this announcement was affirmed by treasury on march 2, 2025…”

the corporate transparency act mandates that businesses disclose who their beneficial owners are—the individuals who ultimately own or control a company. these reports must be filed and updated whenever ownership changes occur, ensuring transparency in financial transactions and corporate structures.

this question has sparked debate: should attorneys handle this? should it fall under the scope of accountants and enrolled agents?

the answer: yes, attorneys can handle these filings, but tax professionals are uniquely positioned to take the lead.

unlike attorneys, who often engage with clients only on an as-needed basis, tax professionals meet with clients regularly, often annually or even more frequently. this close relationship enables tax professionals to track changes in ownership structures and ensure timely compliance—something that may otherwise be overlooked.