KSCPA Reaches out to Congress to Support Delay in Beneficial Ownership Reporting Requirements

September 7, 2023

The Kansas Society of CPAs 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 KSCPA 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.

KSCPA 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.

“KSCPA has been in contact with our state’s federal legislators to ask for their co-sponsorship of this legislation,” said Danielle Hologram, KSCPA 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.”

Background on the Issue

The Beneficial Ownership Information (BOI) reporting requirement is an anti-money laundering initiative enacted through the Corporate Transparency Act in 2021. The Financial Crimes Enforcement Network (FinCEN – pronounced “fin-sen”) is a division of the U.S. Treasury Department which will begin requiring small businesses including small CPA firms to report information on the “owner” of an entity beginning in 2024. Existing small businesses, formed before December 31, 2023, have one year to file – the filing deadline for these small businesses is January 1, 2025. Small businesses formed starting January 2024 or those that have a change in owner information throughout the year have 30 days to file. For more information see the AICPA’s resource landing page by visiting this link: AICPA BOI Resource Page. On the resource page, you will find many additional resources including AICPA’s FAQ sheet for firm practitioners which you can also access directly at this link: AICPA BOI FAQ Highlights