In a letter addressed to the U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN), SCACPA and its peers voiced serious concerns regarding enforcing the reporting requirements for the Beneficial Ownership Information (BOI).
The letter – signed by all 54 state CPA societies and the AICPA – asks that all enforcement actions be suspended until one year after all court cases related to NSBA v. Yellen conclude and states that no retroactive enforcement for non-compliance should happen. 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 1st court ruling that 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 will keep you informed as these proceedings advance.
“We feel that the BOI reporting requirement is still unclear and has been made even more confusing as a result of the court case,” said [state society representative]. “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 January 1, 2024.