Corporate Transparency Act: When People Named In Trusts Won’t File?

Introduction and Background

Let’s start with a quick refresher to set the stage for an important issue confronting many people who have created trusts. The Corporate Transparency Act (CTA) is a new law that became effective January 1, 2024, for newly formed entities and requires them to file informational reports with the Financial Crimes Enforcement Network (FinCEN). The real kicker begins January 1, 2025, when most entities that existed before 2024 will have to report. The reports are simple but rather personal and invasive, e.g., driver’s license, Social Security Number, home address, etc. The penalties for not filing are onerous, $500/day, and up to two years in jail.