The Georgia Society of CPAs Co-signs Letter To FinCEN and Treasury on BOI Delay
The Georgia Society of CPAs, other state CPA societies, and the AICPA recently co-signed a letter to the Financial Crimes Enforcement Network (FinCEN) and specifically Secretary Janet Yellen and Director Andrea Gacki urging a one-year delay in the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) filing deadline. The current January 1, 2025, deadline is unrealistic for the nearly 80% of small businesses unaware of the requirement, as well as for CPAs working to navigate the program’s complexities.
The BOI rule aims to combat illicit financial activity but has created widespread confusion for small businesses and CPAs alike. Questions such as “Who qualifies as a beneficial owner?” and “What does ‘substantial control’ mean?” remain unclear. These challenges are compounded by limited resources, recent natural disaster delays, and new legal developments that highlight the need for a more measured approach.
Why This Letter Is a Timely and Relevant Ask
Several factors make this request for a delayed deadline both urgent and timely:
- Recent Court Ruling in Texas
The U.S. District Court for the Eastern District of Texas recently suspended the implementation of the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) reporting requirements. GSCPA has reached out to FinCEN for additional guidance on this injunction. - Small Business Awareness Gap
According to recent estimates, close to 80% of small businesses remain unaware of the BOI filing requirement. This lack of awareness poses a significant risk of noncompliance. - Complexity of Compliance
CPAs and small business owners continue to face challenges interpreting the rule’s requirements, particularly around nuanced definitions such as "substantial control" and the treatment of specific entity types like trusts, homeowner associations, and community property entities. While FinCEN has published an FAQ, it does not address the more complex questions that practitioners and small businesses regularly encounter. - Tight Timeline Amid Other Challenges
With less than a month remaining before the filing deadline, businesses in regions affected by recent natural disasters are even more at risk of noncompliance due to delays, confusion and resource constraints. The compressed timeline is creating additional pressure on CPAs.
What We’re Asking For
In our letter to FinCEN, we’ve requested the following:
- Delay the filing deadline to January 1, 2026. This will provide much-needed time for businesses and advisors to fully understand and comply with the requirements.
- Suspend enforcement actions during this period. Voluntary filings could still proceed, but no business should face penalties while clarity is lacking.
- Enhance outreach and education. FinCEN should invest in clearer communication and resources to help small businesses, and their advisors navigate this process effectively.
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!
Resources
GSCPA Joins AICPA in Letter to Voice Concerns with BOI Rollout and Request Delay of Enforcement
Coalition Calls Attention to New Beneficial Ownership Information Reporting Requirements
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.