Accounting firms are in a unique position to assist their clients with the Corporate Transparency Act (CTA), which took effect Jan. 1, 2024, aiming to enhance transparency into corporate structures. The CTA mandates reporting beneficial ownership information (BOI) to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) – a requirement that will affect more than 32 million companies in 2024.

While the prospect of accountants helping clients understand and work through CTA filing requirements raises concerns as to whether this assistance constitutes the accountant’s unauthorized practice of law (UPL), Attorney at Law Herrick K. Lidstone, Jr., asserts in his new white paper, “The Corporate Transparency Act: Lawyers and Accountants,” that collaboration between accountants and legal counsel is essential to clients’ successful CTA compliance.

The white paper, now available for download in the COCPA members-only Resource Center, highlights guidance from the AICPA and others, which emphasizes the importance of clear communication with clients and collaboration with attorneys. Lidstone notes that FinCEN “clearly expects significant accountant involvement” in helping to ensure organizations’ CTA compliance.

The COCPA seeks to share with its members the insights and opinions of local experts from the legal community on topics of shared concern such as the Corporate Transparency Act. 

Visit the COCPA Resource Center to search and download articles, sample letters, and other resources on the Corporate Transparency Act and other timely topics pertinent to the accounting profession.