New reporting requirement for most dental practice owners under Corporate Transparency Act

January 23, 2024
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Quick Summary: Owners of small businesses with fewer than 20 employees are required to report their ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network in compliance with the federal Corporate Transparency Act. FinCEN began accepting the beneficial ownership information reports at the start of the new year, but businesses that existed prior to 2024 and are currently operating have until Jan. 1, 2025, to submit the reports. Businesses that form in 2024 or subsequent years have 90 days from business creation to comply.

Owners of dental practices and other small businesses with fewer than 20 employees are newly required to report their ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network in compliance with the federal Corporate Transparency Act. The purpose of the bipartisan act, enacted with bipartisan support in 2021, is to curb illicit finance, such as money laundering, drug trafficking and corruption.

The Financial Crimes Enforcement Network, or FinCEN, began accepting the reports, called beneficial ownership information reports, from employers at the start of the new year, but businesses that existed prior to 2024 and are currently operating have until Jan. 1, 2025, to submit the reports. Businesses that form in 2024 or subsequent years have 90 days from business creation or registration to comply with the reporting requirement.

Sole proprietors are not required to comply with the Corporate Transparency Act. Certain other entities, including government authorities, banks and public utilities, are exempt from the act’s reporting requirements.

Reporting is open now and is not an annual requirement

Business owners will only submit the beneficial ownership report one time unless they have a change of ownership, in which case they are required to file an updated report within 30 days after the date of ownership change.

Information required on the report includes the owner’s name, date of birth, address and identifying number and issuer of a permitted form of official identification.

Current dental practice owners can take steps now to learn more about the requirement and submit a report. Use these resources:

Be aware of fraudulent attempts to solicit information

Dentists and other small-business filers should note that an alert posted on the FinCEN website reads: “FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act.” Filers are urged not to respond to any correspondence that asks recipients to click on a URL or scan a QR code.

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