Calls for changes to implementation of
Corporate Transparency Act for small businesses
WASHINGTON, May 20, 2024
/PRNewswire/ -- Roger Harris,
president of North American tax and accounting franchise Padgett,
testified this month before the House Committee on Small Business.
Harris was asked to speak on the small business perspective during
a full committee hearing titled, "Under the Microscope: Examining
FinCEN's Implementation of the Corporate Transparency Act."
"Current implementation of the BOI
reporting requirement, without adjustments, will likely lead to
mass non-compliance."
Harris's goal in attending this hearing on behalf of Padgett's
firm owners and small business clients was to help clarify the
current issues with the implementation of the Beneficial Ownership
Information (BOI) reporting requirement that was created under
2021's Corporate Transparency Act (CTA). "The target audience
impacted by the new BOI reporting requirement hits squarely at the
businesses that we interact with every day... While I have no
problem with the goals of the CTA... I do believe that the current
implementation of the BOI reporting requirement, without
adjustments, will likely lead to mass non-compliance," Harris
stated in his testimony.
Harris's primary concern was the lack of understanding of this
requirement within the small business community. Harris
testified that, "For the majority of these small businesses,
they do not have the internal capacity to track and follow the many
regulations and compliance requirements that fall on their
businesses." In many cases, they would turn to a trusted advisor
such as an accountant, but as Harris shared with the committee,
many tax professionals have been advised by legal counsel or
insurance against assisting with the BOI requirement because of the
potential risks and penalties involved.
During the hearing, Harris provided a few key recommendations to
improve the BOI requirement. He advised that Congress suspend
enforcement until all court cases are concluded, burdensome
reporting deadlines be changed, language that currently discourages
third-party providers from helping with this requirement is
clarified, and FinCEN collaborate more closely with the IRS.
Harris shared, "This hearing today is a step in the right
direction. I applaud the committees for hosting it."
About Padgett
Through a network of hundreds of individually owned firms,
Padgett provides tax, accounting, payroll and advisory services to
tens of thousands of small businesses across the U.S. and
Canada. With an entrepreneurial
spirit and more than 50 years of experience, Padgett aims to serve
as trusted advisors and empower business owners to pursue their
financial and personal goals. Learn more: padgettadvisors.com.
Padgett Advisors
Katarina Thomas
706-583-5117
kthomas@padgettadvisors.com
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SOURCE Padgett