Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Learn the penalties for failure to report under Corporate Transparency Act

Name: Painting Biz Owners: Learn the penalties for failure to report under Corporate Transparency Act
Uploaded: 2023-12-04T14:00:02+00:00
Duration: 53 s
Channel: Daniel Honan
Description: In this brief dialogue, Speaker B outlines the consequences for failing to file the required report under the Corporate Transparency Act (CTA). The…

4 Dec 2023 · 1 min

Watch on YouTube

0:53

In this brief dialogue, Speaker B outlines the consequences for failing to file the required report under the Corporate Transparency Act (CTA). The maximum penalties authorized by Congress are a fine of up to $500 per day for each day a report is late, and/or up to two years imprisonment. The speaker emphasizes the seriousness of compliance. He then explains the filing timelines: existing businesses have a one‑year grace period, able to submit their initial CTA report any time between January 1 2024 and December 31 2024. In contrast, businesses formed after January 1 2024 must file their initial report within 30 days of formation. The content is aimed at painting business owners, delivering an instructional warning about CTA compliance.

Chapters

If someone doesn't file, what kind of penalties are we looking at?
Congress has authorized some penalties. I'm going to give you the maximum. If this is not filed on time, Congress has authorized a fine of up to $500 per day, every day that your report is late, or a maximum of 2 years in prison. I think those penalties are put there to help with some of these nefarious players, but it is something you want to be taking seriously. That being said, if you are a business that is currently existing, you have a full year to file your initial report. Not be able to file until January 1st, 2024. We'll have until December 31st, 2024 to file your initial report. So a full 12 months. However, after January 1st, any new businesses come into existence, you form a new LLC on January 1st, you will then only have 30 days to file your report.