The American Institute of CPAs (AICPA) joined a coalition of organizations who have come together to make taxpayers and practitioners aware of the new Beneficial Ownership Information (BOI) reporting requirement. BOI 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). It is estimated that there will be 32.6 million filings in 2024, and 5-6 million filings each year thereafter, with the potential for steep penalties for the taxpayer.
“There is concern that many business owners are unaware of this filing requirement,” said LCPA CEO Ron Gitz, CPA, CGMA. “Many small businesses will be subject to this requirement and the goal is to inform them prior to the regulation start date of January 1, 2024.”
The coalition includes the following organizations: AICPA, Latino Tax Pros, National Association of Black Accountants, Inc. (NABA), National Association of Enrolled Agents (NAEA), National Association of Tax Professionals (NATP), National Conference of CPA Practitioners (NCCPAP), National Society of Accountants (NSA), National Society of Black Certified Public Accountants, Inc. (NSBCPA), National Society of Tax Professionals (NSTP), Padgett Business Services, the Diverse Organization of Firms (DOF), H&R Block, Paychex, and Prosperity Now.
As FinCEN releases more information on this reporting requirement, LCPA and AICPA will keep members updated on the issue. In the meantime, the coalition will continue to raise awareness and educate taxpayers of their filing obligations.