In recent months, the complexities of Beneficial Ownership Information (BOI) reporting have been at the forefront of regulatory discussions. With the deadline for BOI filings approaching, many businesses and their accountants are grappling with the nuances of the 2024 Corporate Transparency Act (CTA). 

“According to FinCEN, only a fraction of the 40 million U.S. businesses have filed their BOI reports. The regulatory agency has even released a public service announcement to stress the importance of these filings,” says Charles Wismer, CEO of FincenFetch, a leader in BOI reporting software. 

Challenges to BOI Reporting

The path to BOI compliance remains fraught with challenges. As of July 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) had received only about 2.5 million reports out of an expected 32.6 million for the year. 

This gap highlights ongoing issues within the industry, including:

• 30-day reporting requirement: The current 30-day timeframe for updating or correcting BOI reports is a significant concern. The AICPA has advocated for a shift to an annual filing requirement, as the frequent updates can create a challenging work stream. Accountants may face difficulties in tracking and managing these updates, which can lead to increased costs for small business clients.
• Lack of clarity: Many questions remain unanswered, creating uncertainty around BOI reporting. The AICPA has highlighted the need for clearer guidance and has noted that FinCEN is working to address these issues through updated FAQs and other resources.
• Unauthorized practice of law (UPL) and liability: There are ongoing discussions about the potential for BOI services to be considered UPL. While some states have clarified that CPAs can provide these services without stepping into legal territory, there is a push for legislation to provide additional safeguards for CPAs and clearly delineate their roles in BOI reporting.

FincenFetch and the COCPA: A Strategic Partnership

With deadlines looming and a significant number of businesses yet to file, FincenFetch is ramping up its efforts to assist CPAs and their clients with compliance, offering free webinars and educational materials to help professionals understand and meet the CTA requirements.

In partnership with FincenFetch, the COCPA’s Technology Users Group (TUG) is pleased to offer the one-hour online CPE course, “Beneficial Ownership Reporting for CPAs,” on Oct. 10 from 1:15 to 2:15 pm. The program is free for COCPA members and dives into the procedures, challenges, and best practices for CTA compliance. 

The COCPA’s collaboration with FincenFetch is part of a broader effort in which the software provider has partnered with more than 30 CPA societies nationwide to provide valuable educational resources on CTA compliance. 

The COCPA/FincenFetch partnership extends beyond the Oct. 10 CPE course. Click here to register for the course and learn more about other FincenFetch offerings related to BOI reporting and CTA compliance, including a 20% discount on FincenFetch’s FinCEN filing platform and access to a free, downloadable industry guide.  

Additional resources on BOI reporting and the Corporate Transparency Act:

• AICPA BOI Resource Center
• On-demand CPE course: Corporate Transparency Act – Beneficial Ownership Reporting
• White paper: The Corporate Transparency Act: Lawyers and Accountants