The Corporate Transparency Act’s Reporting Requirements and Their Impact on Health Care Providers and Practitioners

• May 16, 2024

• Patrick L. Murphy , Bricker Graydon LLP

Beginning January 1, 2024, the Corporate Transparency Act (CTA or Act) took effect, and with it comes new registration requirements for swaths of U.S. businesses throughout virtually every industry.

Congress passed the CTA to combat illegal financial activities performed by or through business entities and their owners. The Act requires most U.S. businesses to disclose certain identification information about the businesses themselves and about their beneficial owners through a report filed with the Financial Crimes Enforcement Network (FinCEN). In effect, any company that does business in the United States must now determine whether it falls under the registration requirements set out in the CTA or whether it need not register because it meets any one of the Act’s explicitly enumerated exemptions. While the CTA’s registration requirements affect businesses in a variety of industries, its registration requirements impose unique challenges for health care entities.

ARTICLE TAGS

• Tax and Finance Practice Group
• Governance
• Tax and Nonprofit