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Course Details

This CLE/CPE webinar will review the Corporate Transparency Act (CTA) and its beneficial ownership reporting requirements as applied to tax-exempt organizations. The panel will discuss key definitions and the new reporting requirements and offer suggestions on complying with the Act for nonprofit organizations.

Faculty

Description

The CTA requires certain U.S. and foreign entities that are defined as “reporting companies” under the Act to report beneficial owners and company applicants to FinCEN (the Department of the Treasury's Financial Crimes Enforcement Network). FinCEN maintains a non-public national registry of beneficial owners and company applicants of reporting companies to prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity. Tax counsel assisting tax-exempt organizations must understand what entities are required to report beneficial owners and the possible exemptions available for certain organizations.

These new reporting rules will impact millions of reporting companies formed prior to and after the effective date of the CTA. Noncompliance with these reporting rules may result in civil and criminal penalties.

Although many tax-exempt organizations are exempt from CTA reporting, the Act still is relevant in terms of both confirming their exemption from the CTA and ascertaining the extent to which the CTA might apply to their affiliated companies (which may or may not be CTA-exempt). Therefore, it is important that entities that are potentially impacted by these rules determine (1) whether a tax-exempt organization or other type of entity is a reporting company or is exempt from reporting; (2) who is a beneficial owner and a company applicant; (3) the information that is required to be reported by a reporting company with respect to itself, its beneficial owners, and its company applicants; (4) the necessary due diligence that a reporting company must undertake to file a true, correct, and complete report; (5) when a report is initially due, required to be updated, or required to be corrected; (6) the potential ramifications of noncompliance; and (7) how to establish a workstream to initially prepare for, collect, maintain, and report information required to be reported under the CTA.

Listen as our panel discusses the CTA's key provisions, determining whether tax-exempt organizations are reporting companies or beneficial owners, and the applicability of civil and criminal penalties for noncompliance.

Outline

  1. Overview of the Corporate Transparency Act
  2. Key challenges for tax-exempt organizations
  3. Reporting requirements and disclosure of information
  4. Exemptions
  5. Penalties
  6. Best practices for tax counsel

Benefits

The panel will review these and other key issues:

  • What are the key provisions of the CTA?
  • How do you determine which companies are considered reporting companies under the CTA?
  • What are the criteria for exemption from the CTA?
  • What are the reporting requirements under the CTA rules?
  • What are the key issues for tax-exempt organizations?
  • How do you determine who are beneficial owner(s) under the CTA?
  • What are the potential ramifications for noncompliance?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify reporting requirements for certain businesses under the Corporate Transparency Act of 2021
  • Understand the impact of the CTA on reporting for domestic and foreign companies
  • Recognize key Treasury compliance issues for certain companies and methods to avoid and overcome compliance challenges
  • Ascertain what companies are exempt from the reporting requirements

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of cost allocation principles; familiarity with government standards for nonprofit organizations receiving federal grant monies.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).