Tax pros, ensure accuracy of information given to clients on BOI.

TLDR:

• Small companies have a limited time to report beneficial owners under the Corporate Transparency Act.
• Accounting firms are being cautious in providing advice on BOI reporting to their clients.

Millions of small companies are required to report beneficial owners as part of the Corporate Transparency Act. Accounting firms are being approached by clients for help with reporting, but they are being careful in providing advice. Some firms have decided not to offer BOI reporting services, while others are cautioning clients to seek legal assistance. The BOI reporting requirement places a significant burden on accounting firms, with potential penalties for non-compliance.

Despite a federal judge ruling the CTA and BOI requirement unconstitutional, the Treasury has stated that reporting companies must still comply with the law. The AICPA is advocating for a delay in the reporting requirement. Insurance carriers are addressing coverage implications for accounting firms assisting clients with BOI reporting, as it may involve legal practice. The shifting nature of the BOI reporting situation poses challenges for accounting firms during a busy season.