NEW REPORTING REQUIREMENT FOR SMALL BUSINESSES
More than 30 million American small businesses must start disclosing to the federal government who owns their companies. Is yours one of them?
Starting Jan. 1, 2024, certain corporations and limited liability companies must file a Beneficial Ownership Information form with the U.S. Department of Treasury. The penalties for purposely failing to comply are severe: $500 a day, a $10,000 fine and/or two years in prison.
The federal Corporate Transparency Act was passed to fight terrorism and money laundering. It does not apply to sole proprietors, industries that are already well-regulated, such as banking and insurance, or to charitable organizations. There are also other exceptions that can be found at fincen.gov/boi.
The Act does apply to the following:
Businesses that were created by filing as a corporation or an LLC with the Massachusetts Secretary of State;
Businesses with fewer than 20 full-time employees, with full-time defined as working at least 30 hours per week; and
Businesses with gross revenues of less than $5 million.
Attorney Fine was a panelist at the annual Elder Law Institute in Boston, sponsored by the Massachusetts Chapter of the National Academy of Elder Law Attorneys, on September 24, 2021. From left, Patricia Keane Martin, Esq. of Seegel Lipschutz Lo & Martin, Lisa M. Neeley, Esq., of Mirick O’Connell, and Attorney Fine gave a rundown on recent cases.
The Boston Bar Association recently asked Attorney Meredith A. Fine to write an article about the landmark Kendall case, in which the Supreme Judicial Court ruled that MassHealth claims against estates can only be made within three years of the beneficiary’s date of death.
The Law Office of Meredith A. Fine recently opened a second office, at 2 North Main Street, Ipswich, in the historic Appleton building. The Greater Cape Ann Chamber of Commerce hosted a ribbon-cutting that was attended by family, friends and clients.
The Massachusetts Supreme Judicial Court ruled that the Estate of Jacqueline Ann Kendall was not required to pay more than $100,000 to MassHealth. The landmark decision was issued December 28, 2020. Attorney Meredith A. Fine represented the Estate and was strongly supported by the Massachusetts Bar Association, the Real Estate Bar Association, the Massachusetts chapter of the National Academy of Elder Law Attorneys, and the Abstract Club.
Justice Scott L. Kafker, writing for the Court, explained that the Massachusetts Probate Code created “an ultimate time limit” of three years for all creditor claims on estate and did not make an exception for MassHealth. The Court noted that, as a creditor, MassHealth has the same right as any creditor to open an estate on its own motion. The Court also noted that MassHealth already has more time to file its claims than other creditors,
“The three-year ultimate time limit is a critical provision ensuring the orderly settlement and liquidation of estates in a relatively expeditious manner. We conclude that if the Legislature intended to create an exception for MassHealth to this ultimate time limit, it would have done so expressly…” wrote Justice Kafker.
The case was the first test of the statute of limitations on MassHealth claims under the Probate Code that was passed in 2012.
“The statute in question was extremely clear,” said Attorney Fine. “At some point, estates have to close. The Legislature chose three years and I’m grateful, on behalf of Ms. Kendall’s heirs, that the Court did not disturb the Legislature’s judgment.”