The Washington Society of CPAs (WSCPA) 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 WSCPA 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.
WSCPA 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 WSCPA has been in contact with our state’s federal legislators to ask for their co-sponsorship of this legislation,” said Kimberly Scott, CAE, WSCPA President & CEO, “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.”
Under the Financial Crimes Enforcement Network (FinCEN) CTA, most companies created in or registered to do business in the United States will need to report information on their beneficial owners to FinCEN starting January 1, 2024. There are stiff taxpayer penalties for noncompliance with this requirement. Learn more about the requirement with the following resources for CPAs in public practice, industry, and clients: