NCACPA is engaging federal officials on all fronts to request a delay in the January 1, 2025, deadline for companies to file beneficial ownership information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN).
While many CPAs and public accounting firms in North Carolina are providing assistance to clients with BOI report preparation and submission, some have decided against providing the service.
The Association’s outreach to regulators and legislators has intensified amid a flurry of recent developments, including unexpected intervention by a federal judge.
COALITION LETTERS TO TREASURY AND FINCEN
Together with other state CPA societies and the AICPA, NCACPA signed a letter to leaders of the Treasury Department and FinCEN on December 4 expressing a variety of longstanding concerns about BOI reporting. The letter urges the agency heads to administratively delay the deadline for initial filings by at least one year.
FinCEN estimated that 32.6 million businesses nationwide would need to file a BOI report by January 1, 2025. Fewer than 20 percent of those companies have complied so far, a clear indication of the lack of awareness among businesses and their owners.
COURTS INTERVENE
The letter to Treasury and FinCEN cites the additional confusion caused by a preliminary injunction issued on December 3 by the U.S. District Court in Texas Top Cop Shop, Inc. et al. v. Garland et al.
The Court’s order applies nationwide and blocks FinCEN from enforcing the BOI reporting requirement. So long as the injunction is in place, companies are not required to file BOI reports and are not subject to liability for failure to file. FinCEN is continuing to accept voluntary submissions.
The Justice Department has appealed the Court’s decision, seeking a stay and challenging the injunction. The threat of a reversal on appeal has created even more apprehension and confusion in the business community.
URGING CONGRESS TO STEP IN
NCACPA had been lobbying members of the NC congressional delegation to pressure Treasury and FinCEN to address deficiencies in disaster-related BOI filing relief for victims of Hurricane Helene. These advocacy efforts shifted to working directly with the offices of Senator Ted Budd and House Financial Services Chairman Patrick McHenry to support legislation delaying BOI filing requirements until January 1, 2026.
The NCACPA Advocacy team is telling lawmakers that delaying the filing deadline will provide much-needed clarity and certainty to small businesses and the CPAs who serve them. FinCEN will benefit from more time to raise awareness among reporting companies, as well as time for the courts to adjudicate the matter.
The most likely legislative vehicle for a BOI deadline extension is a stopgap funding measure that Congress must pass before December 20 if it wants to avoid a federal government shutdown.
WHAT DO BUSINESSES AND CPAs NEED TO DO?
The AICPA and NCACPA advises business owners and Association members assisting clients with BOI report filings to continue gathering the required information and be prepared to file the BOI report in case the injunction is lifted.
The AICPA has established a resource page to help keep members informed and provide helpful insights.
If you have questions about this issue or other policy matters,
please contact NCACPA Director of Advocacy Robert Broome, CAE.