AICPA Town Hall Podcast Summary

Episode: BOI Update with FinCEN and Election Insights
Date: November 7, 2024
Host: Erik Asgeirsson (President and CEO, CPA.com)
Guests: Mark Peterson (AICPA Advocacy), Melanie Laridson (AICPA Technical Updates), Phil Lamb (FinCEN)
Theme: Navigating Post-Election Change, BOI (Beneficial Ownership Information) Compliance, and Legislative Updates for CPAs

Episode Overview

This episode delivers critical insights for accounting professionals on two main fronts:

1. Post-Election Regulatory and Legislative Landscape: Mark Peterson provides deep analysis of the 2024 Federal election results, their implications for future tax policies, agency leadership, and regulatory changes under the incoming Trump administration.
2. BOI (Beneficial Ownership Information) Filing Requirements: Phil Lamb from FinCEN joins Melanie Laridson to unpack the current state of BOI compliance under the Corporate Transparency Act, sharing pain points, reporting stats, and guidance to help firms and their clients navigate this new federal mandate.

Key Discussion Points & Detailed Insights

1. Election 2024 Outcome: Implications for the Accounting Profession

[00:10–17:38]

• Election Results & Political Realities:

  • Results were delivered earlier than expected; Trump outperformed across previous Biden coalition states (Pennsylvania, NC, Georgia).
  • Republicans gain a "skinny trifecta" (White House, Senate, House), but with narrow margins—potentially fragile and subject to shifting alliances.
  • “Elections matter and that does create change in Washington.” – Mark Peterson [03:17]

• Legislative Priorities:

  • Expect shifts on tax policy, ESG regulation, business deregulation, and funding priorities—especially for disaster relief and BOI requirements.
  • Narrow margins in House and Senate mean committee compositions will also change.

• Key Quote:

  • “Our priorities will change. We have to keep an eye on the politics to understand the best way to deliver good outcomes from the profession. But we're going to be able to work with this administration and this Congress.” – Mark Peterson [03:33]

Notable Segments

• House/Senate Breakdown: Republicans gain expected seats; important to monitor committee impacts and leadership shake-ups.
  • “You get the majority, even by one vote, you own the gavels. That means that you own the agenda.” – Mark Peterson [08:41]
• Potential Policy Moves:
  • GOP likely to focus on tax cuts, business deregulation, and possibly delay BOI implementation for one year.
• On the Poll Predictions: New market-based pollsters like Poly Market accurately forecasted results ahead of traditional outlets.
• Deficit and Economic Growth:
  • Trump camp prioritizes growth strategies over deficit reduction; M&A activity, especially for small/mid-cap companies, expected to rise.

2. Tax and Regulatory Forecast Under Trump Administration

[10:31–17:38]

• Tax Policy:
  • Anticipate a major tax bill in 2025 to address expiring TCJA provisions (“tax bill...debate next year” – Mark Peterson [10:39])
  • Priorities: lower corporate/individual rates, SALT discussions, 1099K simplification, and disaster relief.
  • “If it's the right package, the votes are there to move forward. But there will be a debate, definitely.” – Mark Peterson [13:49]
• Agency Leadership & Confirmation:
  • Expect swift appointments for Treasury, IRS, and other regulatory bodies, with confirmation processes starting immediately.
  • Agency funding, especially IRS, likely to see “downward pressure.”
• Potential Changes to PCAOB:
  • Possible overhaul or structural adjustment (e.g., making PCAOB a division of SEC); tone of enforcement may moderate.

3. BOI (Beneficial Ownership Information) Reporting Requirements

[26:03–41:48]

• Overview of BOI Program:

  • Enacted by the Corporate Transparency Act (2021), aiming to close loopholes enabling anonymous shell companies.
  • As of this episode: over 6.5 million filings, but over 30 million companies need to file by Jan 1, 2025.

  Key Quote:

  • “Many businesses are sort of simple ownership structures and...have been able to file within 20 minutes.” – Phil Lamb, FinCEN [30:39]

• Outreach & Pain Points:

  • FinCEN is ramping up education via partners (AICPA, states, SBA, IRS) and will expand direct outreach post-election.
  • CPAs can and should help clients with BOI filings; there’s no restriction on professionals supporting compliance efforts.

• Reporting Requirements:

  • Entities created by Secretary of State filings (LLCs, corporations) must report; there are 23 classes of exemptions (e.g., public, large, or regulated entities).
  • “Anyone can offer BOI services to help a company file...if the company allows them to do so.” – Phil Lamb [32:47]
  • Certification by the person entering the data is required.

• Updates and Corrections:

  • Corrections must be filed within 30 days; explains the rationale as balancing accurate anti-money laundering data with reporting burden.
  • Utilization of FinCEN ID to streamline corrections and batch filings.

• Relief for Disaster Victims:

  • Six-month extension for BOI filings offered to businesses in FEMA-declared disaster areas, with an emerging process for broader relief.

• Bulk Filing Methods for Firms:

  • Direct online, PDF, and API (for high-volume filers); API access involves a validation process.
  • “We’ve approved several hundred companies already to do [bulk filings via API].” – Phil Lamb [37:11]
  • Recommendation for firms to use the PDF for audit trail/documentation.

Concerns & Future Action Points

• Ongoing requests from the profession to delay or extend BOI deadlines, particularly as many small businesses remain unaware of the requirement.
• CPAs and their associations advocating for improvements and clarifications; continued collaboration with FinCEN encouraged.

4. Technical Updates & Compliance Reminders

[45:54–53:30]

• Disaster Relief & Filing Extensions:
  • BOI relief granted for businesses in specified disaster areas (Milton, Helene, Debbie, Beryl, Francine).
  • IRS relief for flood victims in Juneau—tax deadlines extended to May 1.
• IRS Updates:
  • 2025 tax inflation adjustments released.
  • Annual e-filing shutdown starting November 30 for IRS system updates.
  • Identity Protection PIN and PTIN renewal reminders for preparers (all preparers must have WISP for renewal).
  • Digital Assets: Important safe harbor deadlines and basis tracking changes take effect January 1.
• Engagement Letters: New 2024 tax engagement letter templates now available.
• Polls and Community Input: Real-time polling in the episode indicated most firms are considering, or in the process of, offering BOI compliance services and are exploring or using third-party technology solutions.

Notable Quotes & Memorable Moments

• On the pace of change:
  • “Change is constant here. So as we sit here today, the way this is lining up we see one picture. Two years from now, you and I could be having a very different conversation.” – Mark Peterson [04:42]
• On political partnership:
  • “We work with whichever administration we get…Our priorities will change.” – Mark Peterson [03:16]
• On BOI compliance pain points:
  • “We understand that the 30 day update requirement is different than what other regimes have...but what we do hope to do is make it as easy as possible for folks to file.” – Phil Lamb [33:57]
• Community Contribution:
  • “Listening to you is high quality CPE.” – Audience feedback, read by Erik Asgeirsson [25:30]
• On IRS funding:
  • “There will be downward pressure on [IRS funding].” – Mark Peterson [17:38]

Timestamps of Key Segments

| Timestamp | Segment | |------------|--------------------------------------------------| | 00:10–05:45| Election results, profession’s response | | 05:45–10:31| House/Senate breakdown, legislative agenda | | 10:31–13:49| Tax policy, economic growth under Trump | | 13:49–17:38| Tax legislation, funding priorities, agency changes| | 26:03–27:30| BOI background by Phil Lamb (FinCEN) | | 27:30–31:17| BOI reporting stats, outreach, compliance pain points| | 31:17–34:22| Who must file, CPA roles, certification process | | 33:57–35:22| Update/correction deadlines, FinCEN ID usage | | 37:11–39:26| Bulk filing options and process | | 39:47–41:48| Disaster relief, ongoing partnership with CPAs | | 45:54–53:30| Technical updates: disaster, IRS, digital assets, PTIN| | 55:21–57:37| ERTC update, BOI delay/repeal possibilities |

Summary Assessment

This episode of AICPA Town Hall delivers a rich, actionable briefing for the accounting profession at a critical time of regulatory, legislative, and compliance change. Mark Peterson's analysis prepares firms for policy directions under a new administration, while Phil Lamb's candid and practical BOI guidance addresses the top concerns and immediate compliance needs for practitioners and clients. The episode spotlights the vital role CPAs play as trusted advisors navigating both technical requirements and the broader business climate.

Essential Takeaway:
Stay proactive—whether it’s preparing clients for new BOI filings, tracking rapid political and agency changes, or addressing evolving compliance obligations, CPAs need to be agile, informed, and engaged with both regulators and clients.