The American College of Radiology (ACR) has published recommendations for its members on the Corporate Transparency Act, the law mandating that companies doing business in the U.S. disclose information about ownership to the federal government.
In a blog post, the ACR explained that under this law, a company must disclose its “beneficial owners” who, directly or indirectly, exercise “substantial control” over the company or own or control at least 25% equity in the business.
While nonprofit organizations and government entities are exempt, the act also offers exemption qualifications that may be applicable to larger radiology practices. Businesses that employ more than 20 individuals, have filed a tax return in the previous year showing more than $5 million in gross receipts or sales, and maintain an operating presence at a physical location in the U.S. are exempt from having to report ownership. As long as a practice meets all of these requirements, the ACR notes, they could qualify for exemption.
The ACR recommended that practices that are subject to the act’s beneficial owner reporting mandate consult with a healthcare attorney who is qualified in their jurisdiction.
Enforcement of the act was planned to start on January 1. However, it is currently facing several legal challenges. A nationwide injunction by a federal trial court has stalled the reporting requirements for now; the government has appealed the injunction. The U.S. Supreme Court is also considering whether it should hear a challenge to the act in a separate case.