GSCPA secures Congressman Buddy Carters Co-Sponsorship of H.R. 4035 Regarding Beneficial Ownership

The Georgia Society of CPAs recently called on federal legislators to support two bills that have been introduced – Senate bill S. 2623 and companion legislation in the House, H.R. 4035, the Protecting Small Business Information Act of 2023. As a result of that ask for support, The Georgia Society of CPAs has secured Congressman Buddy Carter’s Co Sponsorship of H.R. 4035. 

Bill Summary

This legislation would delay the start date for the Beneficial Ownership Information (BOI) reporting requirements until all required rulemaking is final (until all three rules under the Corporate Transparency Act have all been finalized), and all rules would take effect on the same date. The BOI reporting requirement is an anti-money laundering initiative enacted through the Corporate Transparency Act (CTA) in 2021, which mandates that BOI information is reported to the Financial Crimes Enforcement Network (FinCEN). 

Issue

The Georgia Society of CPAs has serious concerns with the BOI reporting requirement small businesses will be required to submit to the Financial Crimes Enforcement Network (FinCEN) beginning in 2024. This reporting requirement is expected to heavily impact small firm CPA practitioners in our state and their small business clients.  Across the country, small businesses are not universally aware of the rule. GSCPA believes that come January many will be unprepared to meet their reporting obligation and face significant consequences including civil and criminal penalties should they fail to report. 

GSCPA is among a large number of accounting professionals advocating for this delay, including the AICPA and a coalition of organizations which includes the following: Latino Tax Pro, National Association of Black Accountants, National Association of Enrolled Agents, National Association of Tax Professionals, National Conference of CPA Practitioners, National Society of Accountants, National Society of Black Certified Public Accountants, National Society of Tax Professionals, Padgett Business Services, the Diverse Organization of Firms, H&R Block, and Prosperity Now.

Stay Informed 

The Georgia Society of CPAs will continue these efforts to delay the implementation of BOI and allow for additional time for small businesses and their CPA business advisors to understand the potential impact of these reporting requirements, including steep penalties for non-compliance. GSCPA will continue to actively participate in the process. We’re working for you!

To read Nick Rider’s recent article about Beneficial Ownership, click here. 

For more on legislation and representation or to locate your local representatives, visit www.gscpa.org. If you have any questions on this issue, contact Don Cook, vice president, legislative affairs at 404-877-2154 (mobile) or dcook@gscpa.org.