Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Corporate Transparency Act Update

Client Alert
December 27, 2023

For a more detailed overview on the CTA, and the changes business owners should expect at the turn of the calendar, click here. A webinar providing further explanation can be viewed here, which was presented December 7.

The Corporate Transparency Act (“CTA”), with an effective date of January 1, 2024, is set to impose strict reporting guidelines on business owners throughout the country.  The below provides a brief update on two aspects of the CTA ahead of its effectiveness next week.

Access and Safeguards Final Rule

On December 21, 2023, the Financial Crimes Enforcement Network issued the final rule setting forth the access and security guidelines (the “Access Guidelines”) related to the CTA.

The Access Guidelines detail six categories of authorized recipients who may access the beneficial ownership reporting information reported by business owners pursuant to the CTA (collectively, “BOI”): (i) federal agencies engaged in national security, intelligence, or law enforcement activity; (ii) state law enforcement agencies; (iii) foreign law enforcement agencies; (iv) financial institutions facilitating compliance with customer due diligence requirements under applicable law; (v) federal functional regulators assisting financial institutions under (iv) above; and (vi) Department of Treasury officers and employees.

Even if an agency is an “authorized recipient” under the Access Guidelines, that agency must satisfy several security and confidentiality requirements to ensure the proper protection of BOI after its receipt.  These recipient agencies are then further prohibited from re-disclosing BOI, unless one of eight enumerated circumstances is present.  Disclosure in violation of the Access Guidelines carries civil penalties in the amount of $500 for each day a violation continues or has not been remedied, and criminal penalties of not more $250,000 or imprisonment for not more than 5 years, or both.

Trend Amongst Service Professionals

Throughout the rulemaking process, it has become clear that the varying levels of analysis required for a given business’ compliance with the CTA is the “practice of law.”  Ohio Revised Code § 4705.07(A)(3) prohibits any person who is not licensed to practice law in the State of Ohio from committing any act that is deemed to be the practice of law.  Actions in contravention of R.C. § 4705.07 carry steep civil penalties.

Recognizing the legal components of the CTA, numerous professional associations throughout the country, including the American Institute of Certified Public Accountants, the Ohio Society of CPAs, and the BDO Alliance USA, have advised their membership to consider speaking with legal counsel for their liability risks associated with CTA reporting.

Service providers should direct their clients to consult with an attorney concerning their reporting obligations under the CTA to avoid any liability for the unauthorized practice of law.

For questions regarding the CTA and how your business should prepare for the new mandatory reporting, please do not hesitate to contact BMD Member Blake Gerney (brgerney@bmdllc.com) or BMD Attorney Jacob Davis (jrdavis@bmdllc.com).

 

Business & Corporate LawEmployement LawCorporate Transparency ActBlake R. GerneyJacob R. DavisBeneficial Ownership Information Reporting
Client Alert

The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

January 15, 2024The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.Client Alert

Employee or Independent Contractor? New Guidance Issued by the Department of Labor

January 10, 2024On January 9, 2024, the U.S. Department of Labor (DOL) issued its long-awaited final rule — effective March 11, 2024 — revising its prior interpretation of worker classifications under the federal Fair Labor Standards Act (FLSA). The new final rule rescinds the standard previously established in 2021, in turn, shifting the analysis of whether a worker is an employee (versus an independent contractor) of a business from a more streamlined “economic reality” test to a more complex “totality of the circumstances” standard.Client Alert

Increased Medicaid Rates to Take Effect This Month for Ohio Providers

January 5, 2024As required by House Bill 33, Ohio’s 2024-2025 operating budget bill, reimbursement rates paid by the Ohio Department of Medicaid will increase for a wide range of providers starting on January 1, 2024.Client Alert

The Second Wave of UnitedHealthcare's Prior Authorization Cuts Started in November

December 11, 2023In August 2023, UnitedHealthcare released its plan to eliminate roughly one-fifth of its then-current prior authorization requirements. The first round of prior authorization cuts took effect on September 1, 2023. In that round, UnitedHealthcare eliminated the necessity for some prior authorizations for UnitedHealthcare Medicare Advantage, UnitedHealthcare commercial, UnitedHealthcare Oxford and UnitedHealthcare Individual Exchange plan members. The second and final round of prior authorization cuts began on November 1, 2023. The November 2023 Prior Authorization Cuts apply to the same plans as well as community plans (i.e., Medicaid managed care plans).Client Alert

Legal Uncertainties Remain Following Passage of Issue 1 in Ohio

December 11, 2023In the November 2023 General Election, Ohio voters passed Issue 1 which, among other things, “[e]stablish[es] in the Constitution of the State of Ohio an individual right to one’s own reproductive medical treatment, including but not limited to abortion”. Despite passage of Issue 1, questions persist about how its codification on December 7 affects previously passed legislation restricting abortion and related pending court cases.
Older posts
Newer posts