In the most recent episode of If Walls Could Talk, W&C Publisher Jill Bloom met with Adams & Reese Partner Trent Cotney to discuss the effects of the Corporate Transparency Act.

Cotney says that the act created important paperwork for contractors to file that can have disastrous results if not completed or done incorrectly.

“Basically what [the Corporate Transparency Act] says is that if you are a small business here in the [United] States (there’s some foreign requirements as well), that you have to report your beneficial ownership interest to FINCEN, which is the financial crimes reporting division of the Department of Treasury,” Cotney says. “And you’ve got to file those reports and you’ve got to attest to the fact that the information you put in there is correct.”

Cotney mentions that there are qualifications for what a small business is, but it can apply to multiple firms under one parent company.

However, Cotney’s biggest piece of advice for contractors is to consult with your CPA.

“Discuss that information, make it part of your normal tax process,” Cotney says. “So just like right now, you’re working on getting your 1099-ICs out to your independent contractors before Jan. 31 if you’ve got business, this is one of those things that every time you do it, you’ve got to make sure it gets out.”