In a letter addressed to the U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN), the AICPA, the NJCPA and all other state CPA societies voiced serious concerns regarding the enforcement of the Beneficial Ownership Information (BOI) reporting requirements.
The letter 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,” said Aiysha (AJ) Johnson, MA, IOM, CEO of the NJCPA. “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.