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Jun 9, 2023 Comply FTC Safeguard Rule; Jan 1, 2024 BOI Reporting Start Date

June 07, 2023

June 9, 2023 Deadline to comply with FTC Safeguards Rule includes Professional Tax Preparers

The Federal Trade Commission (FTC) implemented changes to strengthen the data security safeguards of financial institutions several months ago. The deadline for complying with some of the updated requirements of the Safeguards Rule is June 9, 2023. The “financial institutions” definition includes professional tax preparers.

Under the Safeguards Rule, financial institutions must protect the consumer information they collect. The Gramm-Leach-Bliley (GLB) Act requires companies defined under the law as “financial institutions” to ensure the security and confidentiality of this type of information.

January 1, 2024 Regulation Start Date for Beneficial Ownership Information (BOI) Reporting

Most companies created in or registered to do business in the U.S. will need to report information on their beneficial owners. Many small businesses will be subject to this requirement with the potential for steep penalties for the taxpayer.

The new Beneficial Ownership Information (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).

LCPA CEO Ron Gitz, CPA, CGMA says there is concern that many business owners are unaware of this filing requirement. The AICPA joined a coalition of organizations who have come together to make taxpayers and practitioners aware of the new BOI reporting requirement.

As FinCEN releases more information on this reporting requirement, LCPA and AICPA will keep members updated on this issue. In the meantime, the coalition will continue to raise awareness and educate taxpayers of their filing obligations.

Access BOI Resources

Questions about the content of this Alert should be directed to LCPA Government Relations Director  Linda Babin