In a letter to the U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN)NCACPA and the AICPA are calling for a delay of Beneficial Ownership Information (BOI) reporting requirements until the courts determine constitutionality of the law.
The letter, signed by all 54 state CPA societies, urges the Treasury Department and FinCEN to:
- Suspend enforcement of BOI reporting until the court case is resolved.
- Avoid retroactive penalties for non-compliance during this time.
- Provide a reasonable timeframe for compliance, especially for new and existing small businesses.
The request comes after a recent court ruling found the Corporate Transparency Act, which mandates BOI reporting, to be unconstitutional. The ruling has created significant uncertainty because it applies only to the plaintiffs in the case (members of the National Small Business Association as of March 1). The filing requirement stands for all other businesses.
For many small businesses and the CPAs who advise them on compliance, BOI reporting is a complex and burdensome task. This situation adds further confusion. NCACPA and the AICPA believe small businesses should not be penalized until the legal issues are resolved.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.