Listen to the podcast
Adams and Reese Construction Team Co-Leader and Partner Trent Cotney was a special guest on a Walls & Ceilings podcast discussing “Important Corporate Transparency Act Information.”
In the episode of If Walls Could Talk, W&C Publisher Jill Bloom interviewed Cotney, who said that the CTA has 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.”
Effective Jan. 1, 2024, most U.S. corporate entities are required to report to U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The CTA was enacted by Congress in 2021, as an expansion of the anti-money laundering laws, intended to prevent terrorist financing, corruption, tax fraud, and other illicit activity. The CTA requires a Reporting Company to file reports to identify the company’s owners and those who filed the documents creating or registering the company with the state.
Cotney mentions that there are qualifications for what a small business is, but it can apply to multiple firms under one parent company. 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.”
Cotney is a leading member of one of the largest construction practices in the country with Adams and Reese’s roster of more than 80 attorneys serving the construction industry. A Partner in the Adams and Reese Tampa office, Cotney represents construction and infrastructure clients, including general contractors, subcontractors, suppliers, manufacturers, architects, engineers, roofers, developers, and other professionals. He is an EU arbitrator for construction-related disputes. Cotney is also experienced in construction litigation and arbitration, including OSHA defense, lien law, bond law, bid protests, and construction document review and drafting.
Cotney is ranked among the top construction attorneys in Florida by Chambers USA and ranked by Best Lawyers, and Super Lawyers in Florida, Texas, Mid-South, and Illinois. Cotney is a board-certified construction lawyer licensed in eight states and Washington, DC.