By Ronnie Miles, NGCOA, Senior Director of Advocacy
.
As of this year, a regular requirement that many on the corporate and MCO side of golf businesses are familiar with has now broadened — and will cover a much more significant portion of the golf industry. The National Golf Course Owners Association reminds all golf course owners that the Corporate Transparency Act (CTA) now requires corporations, limited liability companies (LLCs), and other entities formed under state law to disclose their beneficial ownership information to the U.S. Treasury Department. This law aims to combat fraud and other financial crimes by enhancing transparency.
Under the CTA, a "beneficial owner" is an individual who owns or controls 25% or more of an entity, directly or indirectly, or exercises significant control over the entity.
Failure to comply with these requirements can result in penalties. Civil penalties for non-compliance are $500 per day for ongoing or unaddressed violations. Criminal penalties may include a fine of $10,000, imprisonment for up to two years, or both. To avoid penalties, ensure your report is filed within the specified deadline. Filing deadlines are as follows:
-
For entities created or registered before January 1, 2024: Reports must be filed by January 1, 2025.
-
For entities created or registered on or after January 1, 2024, and before January 1, 2025: Reports must be filed within 90 calendar days of formation or registration.
-
For entities created or registered on or after January 1, 2025: Reports must be filed within 30 calendar days of formation or registration.
Some tax-exempt entities may qualify for exemptions from these reporting requirements. Refer to FinCEN’s Beneficial Ownership FAQ to verify if your business is exempt.
The CTA is currently facing legal challenges, with potential review by the U.S. Supreme Court to determine the Treasury Department’s authority to enforce these reporting requirements. However, as the legal process will likely extend beyond the January 1, 2025 deadline, NGCOA strongly recommends golf course owners file their reports by December 31, 2024.
For assistance or questions, please reach out to Ronnie Miles at rmiles@ngcoa.org.
.