As a business owner, you probably have heard of the new reporting requirement mandated by the Corporate Transparency Act (CTA). The CTA creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to discourage using shell companies and other opaque corporate structures for illicit activities, such as financing terrorism, money laundering, and other financial crimes.

Because advising clients regarding compliance with the Act may be considered the unauthorized practice of law, we are unable to assist with this filing. Therefore, we recommend you comply with this filing requirement by either

1. Consulting your legal counsel for assistance;
2. Reporting directly to the Financial Crimes Enforcement Network (FinCEN) and complete the necessary information online through their website (here); or
3. Contacting FileForms * to assist with the filing (FileForms.com).

*FileForms is a company who represents they can assist with the completion of this process. Whalen CPAs does not validate the offerings of this company.

The Commercial Activity Tax (CAT) has undergone a significant transformation. Starting in 2024, businesses with taxable gross receipts of $3 million or less will be exempt from CAT. This threshold increases to $6 million for tax periods beginning in 2025. As a result, almost 90% of Ohio-based businesses will no longer need to pay CAT, benefiting around 145,000 of the current 163,000 CAT payers. However, businesses with taxable gross receipts exceeding the exemption amount will continue to pay the current CAT rate of 0.26% on the excess.

While the CAT has seen its first major change since its inception in 2005, there were some vetoes that affected the inflationary adjustment to the exemption thresholds. Additionally, businesses with annual gross receipts exceeding $150,000 but less than $6 million must still file quarterly tax returns, even if they owe no tax. OSCPA is actively working to seek guidance from the Ohio Department of Taxation on administrative relief options for these taxpayers and will engage in discussions with legislators to explore filing relief for those who won’t owe any tax.

Stay tuned for further updates and guidance from OSCPA as we navigate these changes and work towards ensuring a smooth transition for Ohio businesses. We remain committed to supporting you during these transformations in the CAT framework.

Attention Business Owners: State Requirement Alert!

Don’t miss the deadline for reporting and remitting all unclaimed funds ($50 or more) to the Division of Unclaimed Funds.

Mark your calendars for November 1st, the annual due date for reporting unclaimed funds held as of June 30th. Make sure you comply with Ohio’s regulations to avoid penalties!

Check the State’s website at www.com.ohio.gov/unfd for essential information and guidance on reporting procedures.

Review your outstanding checklist as of June 30, 2022, to identify checks to individuals over one year old. For any checks above $50, send a certified letter notifying the recipients of the unclaimed funds. Remember, allow 30 days for a response before turning the money over to the State. Keep a copy of the letters in your “Unclaimed Funds” file.

If you have no outstanding checks over $50 to individuals, you’ll need to file an OUF-1 by November 1st.

Reach out to your trusted Whalen CPAs accountant if you have any questions or need assistance with the reporting process. We’re here to help you navigate these requirements seamlessly!