BREAKING NEWS – Corporate Transparency Act on Hold
as of Monday, March 3, 2024
On Friday March 1, 2024, the U.S. District Court for the District of Alabama declared the Corporate Transparency Act (CTA) unconstitutional. In the case of National Small Business Association v. Yellen (Case No. 5:22-cv-01448) [1], initiated by the National Small Business United, the challenge was against the CTA’s mandate for small businesses to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
The ruling has the effect of suspending all BOI filing requirements for now, all enforcement actions, and all compliance concerns including questions of “practicing law without a license.” Experts believe the ruling will be appealed, probably to the Supreme Court, so this is a temporary filing requirement suspension until a final appeal is exhausted. Voluntary filing appears to still be allowed if for some reason a client desires to file.
IRS Sends Letters to Alert Taxpayers to Possible Identity Theft
Some taxpayers will receive a letter from the IRS in 2023 about possible theft of their identity. If you receive one of these letters, it means the IRS suspects that a scammer has used your personal information to attempt to claim a tax refund. There is no need to panic, but do not throw the letter away. Instead, follow the steps explained in the letter to keep yourself safe.
Scammers use stolen Social Security numbers (SSNs) to file fraudulent tax returns in someone else’s name, and collect tax refunds. To keep taxpayers safe, the IRS scans every return for signs of fraud. If IRS personnel believe that a return filed in your name may be a case of identity theft, you will get a letter asking you to verify your identity online, by phone or in person.
If you filed a tax return for the year shown in the letter, carefully follow the instructions to confirm your identity, so the IRS can process only your legitimate return. If you did not file a return, then any return submitted in your name is clearly fraudulent. In this case, the letter will provide either a Taxpayer Protection Program hotline number, or instructions to use an IRS online tool. Call the phone number or log on to the tool immediately and notify the IRS that you did not file, so authorities can work to track down the scammer and protect your identity.