Nearly half of businesses affected by beneficial ownership reporting are delaying the process until year-end, according to a recent survey by Wolters Kluwer.

The Corporate Transparency Act (CTA), passed by Congress in 2021, aims to combat fraud and enhance transparency in business transactions. As the CTA filing deadline for millions of businesses approaches on January 1, 2025, it's essential for organizations to understand their obligations and prepare accordingly.

The Financial Crimes Enforcement Network (FinCEN) estimates that 32.6 million entities must file by the deadline. However, a survey conducted by Wolters Kluwer CT Corporation found that 32% of respondents acknowledged their organizations were "not at all prepared."

Wolters Kluwer, a global leader in information, software solutions, and services for professionals across various industries, is offering guidance through an on-demand webinar, Preparing for the Corporate Transparency Act deadline. This resource is available to help navigate the Beneficial Ownership Information (BOI) reporting requirements.

The survey also revealed that 37% of respondents are waiting until closer to the year's end to file their reports, and 9% believe the BOI requirements do not apply to their business. Rupak Venugopal, Vice President of Beneficial Ownership at Wolters Kluwer Financial & Corporate Compliance, emphasized the importance of understanding filing status and prompt submission of required information to avoid penalties.

Non-compliance with the CTA could result in civil penalties of up to $591 per day and criminal penalties of up to $10,000. As of mid-November, 8.5 million of the estimated 32.6 million entities have submitted their BOI reports with FinCEN.

Wolters Kluwer employs approximately 21,400 people worldwide and reported 2023 annual revenues of €5.6 billion. The company serves customers in over 180 countries and maintains operations in over 40 countries, including its headquarters in Alphen aan den Rijn, the Netherlands.

For further information about Wolters Kluwer, visit their official website at www.wolterskluwer.com or follow them on LinkedIn, Facebook, YouTube, and Instagram. Additional insights on BOI compliance can be found at Corporate Transparency Act Resources from CT Corporation Wolters Kluwer.

Many businesses are not prepared for the CTA due to unfamiliarity with the requirement or misconceptions about CTA reporting criteria. It's crucial for organizations to educate themselves on the CTA and take the necessary steps to ensure compliance before the deadline.

Nearly half of businesses affected by beneficial ownership reporting are delaying the process until year-end, according to a recent survey by Wolters Kluwer.