BOI CALL TO ACTION: Ask the US Senate to pass H.R. 5119 by 12/31

The AICPA has requested we urge LCPA members to call your two US Senators and urge them to pass H.R. 5119 as passed by the US House of Representatives before the end of the year.

On Tuesday, December 12, the US House of Representatives passed H.R. 5119 (introduced by Representatives Zach Nunn, Iowa and Joyce Beatty, Ohio), which would provide for a one-year delay to the implementation of the Beneficial Ownership Information (BOI) reporting requirements. Now, the US Senate must take up this bill by December 31 or small businesses and the financial professionals who serve them will be working to navigate this new reporting requirement without clear guidance from FinCEN.

To contact your US Senator by phone:

1. Phone numbers for Senators Cassidy and Kennedy are below. If you live in another state, you can find your senators' information HERE.
       •    Bill Cassidy: (202) 224-5824
       •    John Kennedy: (202) 224-4623
    
2. Identify yourself as a CPA and as a voting constituent of the senator. You may be asked to share your email or street address so they can verify your residency in your home state.
    
3. Tell the staff person you are calling to discuss your concerns with the FinCEN (pronounced fin-sen) beneficial ownership reporting requirements, which begin on January 1, 2024. Tell them you would like the Senate to take up the H.R. 5119 as passed by the House of Representatives on Tuesday, December 12, which would provide financial practitioners a one-year delay to help small businesses better understand their reporting requirements.

Additional talking points:

• I am calling to discuss my concerns with the FinCEN (pronounced fin-sen) beneficial ownership reporting requirements. 
• The FinCEN rule goes into effect on January 1, 2024. Many small businesses do not know this filing requirement will impact them beginning in 2024. We are deeply concerned that the small business community will not be ready to comply.
• We urge the US Senate to pass H.R. 5119, the Protect Small Business and Prevent Illicit Financial Activity Act, as passed earlier this week in the US House, by the end of this year.
• Most businesses will be subject to the filing requirement.
  > Businesses earning less than $5 million in gross receipts and 
  with fewer than 20 full time employees must file.
  > Certain large operating entities and certain publicly traded companies are exempt. There is a list of 23 exceptions, but most businesses are not exempt.
  > Most 501(c) and 501(a) organizations are exempt from filing.
• Penalties on the taxpayer are steep:
  > $500 per day, up to $10,000;
  > and up to 2 years of imprisonment for willfully not filing.
• Given the steep penalties, we expect many small businesses will seek the assistance of a trusted financial professional to assist with their reporting requirement.
• Any change in beneficial ownership information must be reported to FinCEN within 30 days. This could become a monthly tracking requirement for tax professionals to keep up with client information changes to ensure they are compliant with the reporting requirements.
• Because of these concerns, we urge the US Senate to act quickly before the end of the year and pass H.R. 5119 as passed by the US House. This legislation will provide a delay allowing small businesses to ensure they are prepared to report their beneficial ownership information.
   

Questions about the content of this Alert should be directed to LCPA Government Relations Director Linda Babin.