As Beneficial Ownership Information (BOI) reporting becomes more pressing for CPAs, their clients and small businesses, here’s a brief outline of some recent activities and AICPA resources that will be available soon.
BOI reporting – FinCEN rules effective January 2024
BOI reporting requirements became effective January 1, 2024 for companies, including most CPA firms. There are 23 exceptions to the reporting requirements, but many of those that qualify for the exceptions are already regulated by the government in some form.
Here’s a Journal of Accountancy article that outlines the requirements and various risk considerations around the BOI engagement. To date, no state bar has stated that BOI reporting engagements constitute the unauthorized practice of law (UPL). If you hear that a state bar has taken a position in your state, please send a note to AICPA VP – Tax Advocacy Melanie Lauridsen – she’s leading this initiative for the AICPA.
AICPA advocating with professional liability insurers for clarity & resources
The AICPA is working with some insurance carriers to provide sample engagement letters that CPAs can use with their clients. The AICPA is also working to clarify professional liability coverage in the event that a CPA performs a BOI service that a state bar later determines to be the unauthorized practice of law.
In the meantime, please become familiar with the extensive resources available around BOI reporting. As AICPA teams have emphasized on the AICPA Town Halls, since existing entities have a full year to file, AICPA encourages members (and their clients) to watch for more clarity from FinCen and insurers, and therefore NOT to rush to file.
We’ll share resources with you, and they will also be on AICPA Town Halls and in the AICPA Town Hall newsletter. Stay tuned!