Beneficial Ownership Information

FICPA co-signs letter requesting delay of BOI reporting enforcement

133345 — Mon, 08 Apr 2024 16:00:28 +0000

FICPA co-signs letter requesting delay of BOI reporting enforcement

133345 Mon, 04/08/2024 - 12:00

April 8, 2024

In a letter addressed to the U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN), the FICPA and AICPA voiced serious concerns regarding the enforcement of the Beneficial Ownership Information (BOI) reporting requirements.

The letter – signed by all 54 state CPA societies and the AICPA – asks that all enforcement actions be suspended until one year after the conclusion of all court cases related to NSBA v. Yellen and believes that no retroactive enforcement for non-compliance should happen during this time. In addition to the estimated burden hours and associated time-cost, the letter also urged caution regarding the failure to provide a reasonable timeframe for small businesses to comply with BOI for both new and existing entities, which has effectively become a 30-day tracking requirement.

The letter raises an alarm because of a March 1 court ruling which finds that the Corporate Transparency Act (CTA) is unconstitutional. This ruling only applies to National Small Business Association (NSBA) members as of March 1, meaning those NSBA members currently do not need to file a BOI report, but the filing requirement stands for all other businesses.

“We feel that the BOI reporting requirement is still unclear and has been made even more confusing as a result of the court case,” FICPA President & CEO Shelly Weir said. “We are advocating on behalf of our members, particularly those with small business clients, in signing this letter asking FinCEN to suspend enforcement of BOI until one year from when all court cases are resolved.”

Furthermore, the letter asks that no small business should be compelled to file or face enforcement for failure to comply until after the courts have worked through this complex case. BOI reporting requirements went into effect Jan. 1, 2024.

Read the full letter below:

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Beneficial Ownership Information

AICPA

FinCEN extends deadline for companies created or registered in 2024 to file Beneficial Ownership Information reports

133345 — Wed, 29 Nov 2023 22:52:17 +0000

FinCEN extends deadline for companies created or registered in 2024 to file Beneficial Ownership Information reports

Financial Crimes Enforcement Network release

133345 Wed, 11/29/2023 - 17:52

November 29, 2023

WASHINGTON — The Financial Crimes Enforcement Network (FinCEN) issued a final rule today that extends the deadline for certain reporting companies to file their initial beneficial ownership information (BOI) reports with FinCEN. Reporting companies created or registered in 2024 will have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports. FinCEN will not accept BOI reports from reporting companies until January 1, 2024 — no reports should be submitted to FinCEN before that date.

“This deadline extension will have significant benefits and will provide valuable extra time for company applicants and for reporting companies created or registered in 2024 to understand this new regulatory obligation and obtain the required information to file their BOI reports,” said FinCEN Director Andrea Gacki.

This extension will give reporting companies created or registered in 2024 more time to become familiar with the guidance and educational materials located at https://www.fincen.gov/boi, and to resolve questions that may arise in the process of completing their initial BOI reports. FinCEN also anticipates that this deadline extension will make compliance easier for these first filers under the new reporting requirement and will promote the creation of a highly useful BOI database, as required by Congress.

Reporting companies created or registered before January 1, 2024, will continue to have until January 1, 2025, to file their initial BOI reports with FinCEN, and reporting companies created or registered on or after January 1, 2025, will continue to have 30 calendar days to file their initial BOI reports with FinCEN.

Businesses with questions about the upcoming reporting requirements may contact FinCEN at https://www.fincen.gov/contact.

Topics

Beneficial Ownership Information

FICPA supports comment letter calling for an extension and expansion in Beneficial Ownership reporting requirements

133345 — Mon, 06 Nov 2023 17:48:40 +0000

FICPA supports comment letter calling for an extension and expansion in Beneficial Ownership reporting requirements

By FICPA Staff

133345 Mon, 11/06/2023 - 12:48

November 6, 2023

The FICPA has joined AICPA and dozens of other state CPA societies to ask the Financial Crimes Enforcement Network (FinCEN) to extend and expand the deadline for beneficial ownership information (BOI) reporting requirements, specifically for Reporting Companies Created or Registered in 2024.

Effective January 1, 2024, existing companies, companies created or registered before January 1, 2024, will have one year, through January 1, 2025, to file their initial BOI reports. New companies, companies created or registered on or after January 1, 2024, will have 30 days to file their initial BOI reports. If there are inaccuracies in the initial BOI report filed or companies have a change in information, such as change in residential address or percentage of ownership, they will have 30 days to report changes or correct the inaccuracies.

The BOI reporting requirement is an anti-money laundering initiative enacted through the Corporate Transparency Act (CTA) in 2021, which mandates that BOI information is reported to FinCEN.

In a comment letter, sent October 30, 2023, the profession specifically recommends that FinCEN extend the deadline from the proposed 90 days to one year and expand the applicability of the deadline to include not only new entities created in 2024 but ALL entities created thereafter, as well as entities making updates or corrections to their original filings.

Lack of awareness is highlighted in the letter, citing that most businesses are not familiar with the new BOI regulation, despite the campaigns put in place to inform them. The time and financial burdens on small businesses were also mentioned as a potential result of not instituting the recommended changes. The comment letter also hopes to avoid the steep taxpayer penalties that could accompany unawareness of the new reporting requirements.

Read the full letter below:

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AICPA

Beneficial Ownership Information

FICPA reaches out to Congress to support delay in Beneficial Ownership Information reporting requirements

133345 — Mon, 28 Aug 2023 17:55:51 +0000

FICPA reaches out to Congress to support delay in Beneficial Ownership Information reporting requirements

By FICPA Staff

133345 Mon, 08/28/2023 - 13:55

August 24, 2023

The FICPA has called on federal legislators to support two bills that have been introduced – Senate bill S. 2623 and companion legislation in the House, H.R. 4035, the Protecting Small Business Information Act of 2023. This legislation would delay the start date for the Beneficial Ownership Information (BOI) reporting requirements until all required rulemaking is final, and all rules would take effect on the same date.

The BOI reporting requirement is an anti-money laundering initiative enacted through the Corporate Transparency Act (CTA) in 2021, which mandates that BOI information is reported to the Financial Crimes Enforcement Network (FinCEN).

In conjunction with the AICPA, the FICPA will continue these efforts to delay the implementation of BOI and allow for additional time for small businesses and their CPA business advisors to understand the potential impact of these reporting requirements, including steep penalties for non-compliance.

The FICPA is among a large number of accounting professionals advocating for this delay, including the AICPA and a coalition of organizations which includes the following: Latino Tax Pro, National Association of Black Accountants, National Association of Enrolled Agents, National Association of Tax Professionals, National Conference of CPA Practitioners, National Society of Accountants, National Society of Black Certified Public Accountants, National Society of Tax Professionals, Padgett Business Services, the Diverse Organization of Firms, H&R Block, and Prosperity Now.

“The FICPA has been in contact with our state’s federal legislators to ask for their co-sponsorship of this legislation,” said FICPA President & CEO Shelly Weir, “and we share the AICPA’s concerns about the reporting requirements and the negative impact it will have on small CPA practitioners and small businesses."

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AICPA

Beneficial Ownership Information

New Beneficial Ownership Information reporting requirements: What you need to know

133345 — Wed, 24 May 2023 20:28:09 +0000

New Beneficial Ownership Information reporting requirements: What you need to know

By FICPA Staff

133345 Wed, 05/24/2023 - 16:28

May 24, 2023

The Corporate Transparency Act was enacted as part of the National Defense Act for Fiscal Year 2021. The CTA mandates that millions of entities report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).

Per FinCEN: "A final rule implementing the beneficial ownership information reporting requirements of the Corporate Transparency Act (CTA) was issued in September 2022. These regulations go into effect on Jan. 1, 2024. Beneficial ownership information will not be accepted prior to Jan. 1, 2024."

The American Institute of CPAs (AICPA) joined a coalition of organizations who have come together to make taxpayers and practitioners aware of the new BOI reporting requirement. BOI is an anti-money laundering initiative enacted through the CTA, which aimed "to help prevent criminals, terrorists, proliferators, and corrupt oligarchs from hiding illicit money or other property in the United States."

It is estimated that there will be 32.6 million filings in 2024, and 5-6 million filings each year thereafter, with the potential for steep penalties for the taxpayer.

“There is concern that many business owners are unaware of this filing requirement,” said FICPA President & CEO Shelly Weir. “Many small businesses will be subject to this requirement and the goal is to inform them prior to the regulation start date of Jan. 1, 2024.”

The coalition mentioned above includes the AICPA, Latino Tax Pros, National Association of Black Accountants, Inc. (NABA), National Association of Enrolled Agents (NAEA), National Association of Tax Professionals (NATP), National Conference of CPA Practitioners (NCCPAP), National Society of Accountants (NSA), National Society of Black Certified Public Accountants, Inc. (NSBCPA), National Society of Tax Professionals (NSTP), Padgett Business Services, the Diverse Organization of Firms (DOF), H&R Block, Paychex, and Prosperity Now.

As FinCEN releases more information on this reporting requirement, the FICPA and AICPA will keep members updated on the issue. In the meantime, the coalition will continue to raise awareness and educate taxpayers of their filing obligations.

To learn more, we recommend you visit FinCEN's BOI resource page, AICPA's BOI reporting guidance and resource page, and review the pair of AICPA FAQs embedded below:

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AICPA

Beneficial Ownership Information