“Unique Enthusiasm” for a Better 2021

Melissa Jay Murphy tees up a new act, new form, new session and an even better Fund Assembly

Dear Members,

I usually greet a new year with enthusiasm - this is likely based on an illogical premise that I will avoid continuing bad habits and will no longer let little things annoy me……….

Hahaha!

But 2021 does brings unique enthusiasm and a sense that this year will be better!  And it has nothing to do with discarding my bad habits or learning to be less judgmental.  There are lots of reasons why it is bound to be better!

So let me begin this week's blog with heartfelt best wishes for 2021!

What do you need to know today?  Let's start with the passage of the Corporate Transparency Act.  This is a new federal law approved by Congress as part of the National Defense Authorization Act for Fiscal Year 2021.  The CTA aims to eliminate the use of US-incorporated shell companies for money laundering.  Sound familiar?  We are well aware of this policy because we have been dealing for several years with GTOs issued by FinCEN applicable to Florida property transactions.  What's new?  FinCEN must now establish a database through which companies must register and provide information on the beneficial owners of the underlying company.  Beneficial owners are defined as those who control 25% or more of the ownership of the company or persons who otherwise substantially control the entity (e.g., CEO).  FinCEN must first enact some implementing regulations but once those are finalized, newly created entities must register right away.  Existing companies will have up to two years to register.  There are numerous companies that are exempt from the registration requirement.  I have barely touched the surface of this new law so for more information, here's a link to an article from Mayer Brown.  The CTA is addressed in Section 2 of the article.  https://www.thefund.com/TheFund/media/PDFs/national-defense-authorization-act-for-fiscal-year-2021.pdf

New IRS Form.  We are all familiar with IRS Form 4506-T, the request for taxpayer information.  It would typically be found in a lender closing package.  Effective 3/1/21,  IRS will discontinue accepting that form and instead will require use of the Form 4506-C, IVES Request for Transcript of Tax Return.  “IVES” was a new acronym for me…stands for Income Verification Express Service.  Apparently lenders subscribe to this service which provides them with income verification and other resources needed to process a loan application. https://www.thefund.com/TheFund/media/PDFs/Form-4506-C.pdf

2021 Legislative Session will kick off in early March but committee meetings have started and bills are being filed.  I will monitor and share information with you about bills of interest so keep an eye out for information in future blogs.

Assembly 2021 will be virtual again this year but I promise it will be even better than 2020!  We learned a lot from last year's event and from attending other industry virtual events.  The dates are May 19, 20 and 21, 2021.  More information will be sent out so do not be concerned that you have missed anything!

Take care.  Stay safe.  Get in line for the vaccine.

And let me know how we can help you.