Read more about the article Updates on the Corporate Transparency Act: Our Commitment to Keeping You Informed

Updates on the Corporate Transparency Act: Our Commitment to Keeping You Informed

At Sims & Campbell, our experienced estate planning attorneys are committed to providing our clients with the latest updates on legal developments that could impact them. To ensure you have the most accurate and timely information, we will now be posting all news regarding the Corporate Transparency Act (CTA) right here on our blog. On March 2, 2025, the U.S. Treasury Department announced a suspension of the March 21, 2025, deadline for filing under the Corporate Transparency Act (CTA) for both domestic companies and U.S. citizens. Additionally, the Treasury announced it will not enforce any penalties or fines. This decision follows a series of legal and regulatory developments regarding the CTA and its enforcement. For more details, see below: The Corporate Transparency Act (CTA) is a U.S. law that was enacted as part of the National Defense Authorization Act for Fiscal Year 2021. The purpose of the CTA is to enhance transparency in the ownership of companies and to combat illicit activities like money laundering, tax evasion, and terrorist financing by making it harder for criminals to hide behind anonymous shell companies. The CTA requires certain businesses, including corporations, limited liability companies (LLCs), and similar entities, to disclose information about their beneficial owners. A beneficial owner is an individual who, directly or indirectly, owns or controls at least 25% of a company or who exercises substantial control over it. The CTA has far-reaching implications for both domestic and foreign companies, and understanding its requirements is essential for compliance. With that in mind, we’ll keep you up to date on any changes, deadlines, and new regulations that emerge. Read on for the latest news on the Corporate Transparency Act. Here are the key takeaways: Suspension of the Filing Deadline: The Treasury has suspended the filing requirement under the CTA for domestic companies and U.S. citizens. The March 21, 2025, deadline is no longer applicable at this time. No Penalties or Fines At This Time: The Treasury Department announced it will not enforce any penalties or fines associated with the BOI reporting rule under the existing regulatory deadlines. Proposed Rulemaking to Narrow Scope: The Treasury is preparing a proposed rulemaking that could narrow the scope of the CTA’s reporting requirements to focus exclusively on foreign reporting companies. These are entities formed under foreign law but that have registered to do business in the U.S. by filing a document with a secretary of state or similar office. Legal Uncertainty: The proposed narrowing of the rule is inconsistent with the original text of the CTA and could be subject to legal challenges. While it is unclear who might challenge these changes, the possibility of legal action remains. Ongoing Legal Challenges: The CTA, which was passed during the first Trump Administration and implemented under the Biden Administration, has faced numerous legal challenges across the country. These challenges are still ongoing, with many cases pending before appellate courts. Impact on Information Already Filed: The Treasury has not clarified what will happen to the information already submitted…

Legitimate Power of Attorney Use Leaves Widow Impoverished – Annapolis and Towson Estate Planning

This is a cautionary tale about what can happen, when the wrong person is given power of attorney. The problem here is that a man changed his power of attorney without any review or oversight from any family members, including his own wife. Why Dorothy Jorgenson’s husband changed his power of attorney just days before his death, is something that only he and the relative he named will ever know. However, the relative acted fast and took more than $70,000 from the couple’s joint bank account, says WPRI.com in the article, “Son questions power of attorney after mother's bank account is drained.” "When I went to pick up a prescription for my mother, there was insufficient funds to pick up a prescription," Dorothy's son, Gene Weston, said. "I can’t believe that someone would do that to an elderly woman." The couple had been married for almost twenty years. Both had added money to the account. "My mother is still alive, and my mother needs to continue living," Weston said. The son called the police, because he claims there's no way the power of attorney document for his stepfather was legitimate. "He was on morphine at the time," Gene Weston said. According to a local police report, detectives interviewed several people and found Jorgensen's husband was "only taking a minimal dose of meds." Police determined that Mr. Jorgensen "acted with his own free will" and ended their criminal investigation. However, these types of cases involving powers of attorney, often wind up in civil court. When people make a change to a power of attorney right before their death, it can raise concerns, especially when the person is elderly and on medication. One thing that many people don’t know, is that they can limit the power of attorney document to protect a surviving spouse or family members. It's important to carefully choose an agent and make certain that the power of attorney is properly notarized. You should select a person whom you trust, and whom you know will do the right thing for you, in case you can’t make your own decisions. Despite her actions, the relative who withdrew the money maintains her innocence. Reference: WPRI 12 (April 15, 2019) “Son questions power of attorney after mother's bank account is drained” Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys