NCACPA joined the AICPA and dozens of other state CPA societies in asking the federal regulators to extend and expand the deadline for a new reporting requirement that will impact more than 32 million small businesses, including many CPA firms.
In a letter to the Financial Crimes Enforcement Network (FinCEN), the coalition recommends that the agency extend the effective date of the beneficial ownership information (BOI) reporting rule for one year and expand the applicability of the deadline to new entities created in 2024 and all entities created or making updates to their information thereafter.
The BOI rule is scheduled to become effective on January 1, 2024. Existing companies will have until January 1, 2025, to file their initial BOI report containing information about those who own or exercise substantial control of the entities. Companies formed on or after January 1, 2024, will have only 30 days to file their report, although a pending rule modification would extend this window to 90 days.
If there are inaccuracies in the initial BOI report filed, or if companies have a change in information such as a change in residential address or percentage of ownership, they will have only 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 in 2021. The measure includes substantial civil and criminal penalties for noncompliance with FinCEN’s complex rule.
With less than 60 days until the effective date, FinCEN still has not released a final version of the reporting form or unveiled details about how to file a BOI report.
If you have questions about this issue or other policy matters,
please contact NCACPA Director of Advocacy Robert Broome, CAE.