Dental practices that meet certain requirements can begin providing information on both the practice and its “beneficial owners."

The Corporate Transparency Act, enacted by Congress in 2021, intends to combat the use of businesses as money-laundering operations. It requires certain businesses to report information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Unit about their ownership.

The Financial Crimes Enforcement Network began accepting beneficial ownership information reports on January 1, and all existing dental practices and companies that meet the requirements have one year to file before facing penalties.

A dental practice must file under the act if it meets one or both of the following criteria:

• The practice employs fewer than 20 people.
• The practice generates less than $5 million (gross receipts) in revenue annually.

Reporting companies created or registered to do business in the U.S. before January 1, 2024, must file by January 1, 2025.

Failing to file a report, knowingly providing false information or refusing to provide information if you are a beneficial owner can all carry both civil and criminal penalties. Civil penalties include fines of up to $500 per day until the violation is fixed. Criminal penalties include fines of up to $10,000 and/or imprisonment for up to two years.