A federal judge in Texas reversed a previously issued injunction of the filing requirements of the Corporate Transparency Act, according to a Feb. 20 release from the American Dental Association.
Here are five things to know:
1. Most businesses now have until March 21 to file beneficial ownership reports.
2. The act aims to cut down on money-laundering operations and requires small businesses, including dental practices, to report information on beneficial ownership to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network.
3. The House of Representatives passed a bill that would push the filing deadline to Jan. 1, 2026, for businesses created prior to 2024. The bill is now moved to the Senate.
4. Dental practices are required to file ownership reports if they employ fewer than 20 people or if they generate less than $5 million in annual revenue.
5. Failure to file reports can result in civil penalties including fines up to $5,000 and criminal penalties including fines up to $10,000 and up to two years of prison.
Source: Corporate Transparency Act injunction reversed: 5 notes for dentists / Becker’s Dental + DSO Review