In a letter addressed to the U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN), the WICPA and AICPA voiced serious concerns regarding the enforcement of the Beneficial Ownership Information (BOI) reporting requirements.
The letter — signed by all 54 state CPA societies and the AICPA — asks for the suspension of all enforcement actions until one year after the conclusion of all court cases related to National Small Business United v. Yellen and believes that no retroactive enforcement for non-compliance should happen during this time.
The letter raises the alarm because of a March 1 court ruling that 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.
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.
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. See the letter.
WICPA members will meet with representatives from the Wisconsin State Bar in April to discuss BOI reporting requirements and the roles of CPAs and attorneys in Wisconsin.