Written by Ken Rosenfield, CPA

Just when we thought it was over! The filing requirements for the Corporate Transparency Act have been reinstated—again! The act was reinstated on February 15, 2025, and there is a shortened deadline to submit reports: March 21, 2025. Reports can be filed using the following link:

🔗 https://boiefiling.fincen.gov/

Dealer and Related Dealer Organization Exemption: Are you Exempt?

For our dealership and related clients, please note the following exemptions from reporting requirements.

Dealers and related dealer organizations are exempt if they meet all three of the following criteria:

  1. Employ more than 20 full-time employees;
  2. Operate at a physical office in the U.S.; AND
  3. File federal tax returns showing more than $5 million in gross receipts or sales.

Additionally, there is an exemption under the act for wholly owned subsidiaries of an exempt business.

What This Means for Businesses

⚠️ Failure to file will result in penalties. This is especially important for entities that do not meet the employee or gross receipts exemption, such as dealer real estate holding companies or dealer management companies.

Whether or not this act will be overturned or modified again remains uncertain. In the meantime, if you have not yet filed, please be prepared to do so before the March 21, 2025 deadline.

Stay Informed

Our firm is closely monitoring the situation and will provide updates as they become available. For businesses concerned about potential future changes or needing assistance navigating the complexities of the CTA, our team is here to help.

Feel free to reach out to any member of our staff with questions or for personalized guidance.