ADA Asks for Extension Regarding the Corporate Transparency Act

The Corporate Transparency Act, enacted by Congress in 2021, requires certain businesses, including dental practices, to report information about their ownership to the United States Department of the Treasury’s Financial Crimes Enforcement Unit. The act aims to combat money-laundering operations by increasing transparency around beneficial ownership. Dental practices meeting specific criteria, such as employing fewer than 20 people or generating less than $5 million in annual revenue, must file beneficial ownership information reports by January 1, 2025. The report includes details about the practice’s legal name, trade names, address, jurisdiction, and tax ID number. Beneficial owners, defined as individuals owning or controlling at least 25% of the business or exercising substantial control, must provide personal information like name, date of birth, residential address, and identification details. Failure to comply with reporting requirements may result in civil and criminal penalties, including fines and imprisonment. The American Dental Association (ADA) is urging the Senate to extend the deadline, expressing concerns about the administrative burden on small dental practices. Click here to read more.