As the filing deadline draws closer, the AICPA has grave concerns about the current Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BOI) deadline of Jan.1, 2025. In a letter to the congressional leadership of the Senate Banking Committee and the House Financial Services Committee, the AICPA voiced its concerns with this BOI reporting requirement that went into effect on Jan. 1, 2024.

According to the AICPA,  the deadline for most existing small businesses must be delayed or the U.S. will see millions of small business owners become accidentally and unknowingly delinquent in their compliance. 

The letter said, "To ensure small businesses remain above board with federal laws and regulations, we believe the rule should be suspended for at least a year so the small business community can become better informed of their filing requirement," the AICPA said.

FinCEN has mandated that reporting companies created or registered before Jan. 1, 2024, will have until Jan. 1, 2025, to file their initial BOI reports with FinCEN, and reporting companies created or registered on or after Jan.1, 2025, will still have 30 calendar days to file their initial BOI reports with the regulator. Meanwhile, on Nov. 29, 2023, FinCEN extended the deadline for certain reporting firms to file their initial BOI reports. The regulator said that reporting companies created or registered in 2024 will have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports. 

In the letter, the AICPA said that together with the 54 State CPA Societies, they have raised concerns on various occasions about the number of small businesses that remain unaware of the FinCEN's reporting requirement, despite the "genuine efforts" of  the regulator and advisory stakeholders in the small business community to raise awareness. "With 6.5 million reports received of 32 million expected this year, millions of small businesses, the vast majority of which remain unaware of their reporting requirement, are closing in on the end of the year at which point they will be conflicted with federal law," the AICPA warned.

The AICPA added that together with the "worrying lack of awareness," the association has also been vocal about its worries about the rules' complexities. "These include the unnecessarily tight 30-day timeline for report amendments and changes, which is not consistent with tax filing. This timeline makes monitoring client information incredibly complex for tax professionals who would ordinarily catch changes and updates during their annual client meetings prior to their clients’ annual tax filing." The AICPA added that as welcomed as FinCEN’s announced delays because of the natural disasters experienced in the southeast were,  "these staggered delays have made understanding the initial report filing deadlines considerably more complex."

The association cited the fact that their previous letter said that "Small businesses should have a reasonable chance at compliance.” The AICPA noted that this was a generous and low bar for FinCEN BOI reporting, adding that small businesses should be aware of their reporting requirement, and the process should really be quick and easy for most small businesses. "There is still a lack of clarity and unanswered questions about the reporting requirements which has held small businesses back from filing. Our members do not want to file erroneous reports. However, apprehension around providing filing assistance goes beyond simple pain points for our members who are working diligently to educate their clients. To experience 316 days of non-compliance for 23.5 million small businesses demonstrates the problem is not with the small business community or their trusted financial professionals, the problem is with the program."

The AICPA cited the fact that there are currently 122 clarifying Frequently Ask Questions on the FinCEN website to inform small businesses about a filing requirement described by FinCEN as “simple, secure, and free of charge.” According to the association, "The burden has fallen on our members and others in the small business advisory community to inform their clients of both this program’s existence and their clients’ requirements under the law."