reports - Linkenheimer LLP CPAs & Advisors

Nationwide Injunction Halts Beneficial Ownership Information Reporting Requirements

A federal district court in Texas has issued a nationwide preliminary injunction blocking the enforcement of the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This decision, made in the case Texas Top Cop Shop v. Garland (December 3, 2024, U.S. Dist. Ct., Eastern District of Texas, Case No. 4:24-CV-478), has significant implications for businesses across the United States.

Background on the Corporate Transparency Act

The CTA, enacted to combat money laundering and enhance financial transparency, requires most U.S. corporations, limited liability companies (LLCs), and similar entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Initially, this reporting requirement was due by January 1, 2025, with penalties for non-compliance.

Court Ruling

The court ruled that Congress exceeded its constitutional authority by enacting the CTA, stating that it infringed upon states’ rights to regulate business entities. As a result, the court issued a nationwide injunction prohibiting FinCEN from enforcing the reporting deadline.

The court’s opinion emphasized that the CTA overstepped federal authority, making it an unconstitutional directive. This ruling effectively halts the implementation of BOI reporting requirements until further notice.

Implications for Businesses

For now, businesses are not required to file […]

By Linkenheimer LLP|2024-12-06T16:53:49+00:00December 6th, 2024|business, corporation, New Tax Laws, News|0 Comments

E-file and E-pay Mandate for Employers (Assembly Bill 1245)

New state law mandates electronic submission of tax returns, wage reports, and payroll tax deposits for all employers.

Beginning January 1, 2017, employers with 10 or more employees will be required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). All remaining employers will be subject to this requirement beginning January 1, 2018. Any employer required under existing law to electronically submit wage reports and/or electronic funds transfer to the EDD will remain subject to those requirements. For more information, visit FAQs – E-file and E-pay Mandate for Employers.

Benefits of Electronic Filing and Payments

Increases data accuracy.
Protects data through encryption, which is safer and more secure than paper forms.
Reduces paper and mailing costs.
Eliminates lost mail.
Faster processing of returns and payments.

File and Pay Electronically with e-Services for Business

Employers can use e-Services for Business to comply with the e-file and e-pay mandate. e-Services for Business is a fast, easy, and secure way to manage your employer payroll tax accounts online. With e-Services for Business, you can:

Register for an employer payroll tax account number.
File returns and reports.
Make payroll tax deposits and pay other liabilities.
View and update account information.
And […]

By Linkenheimer LLP|2020-09-03T20:05:10+00:00July 26th, 2016|employer|0 Comments