FinCEN uses TV ad to tell businesses about BOI

As Treasury’s Financial Crimes Enforcement Network (FinCEN) continues to try to get the word out to affected small businesses and other stakeholders about the new beneficial ownership information (BOI) reporting requirements, it announced that it has launched a video public service announcement (PSA) campaign. The PSA focuses on friends discussing the BOI requirements in a coffee shop.

FinCEN released the PSA on Thursday as it seeks to inform 32.6 million small businesses that they must file BOI reports, FinCEN said in a news release. FinCEN also is running a radio PSA in Spanish and digital and print ads. FinCEN says the television and radio PSAs are currently running nationwide. 

Background

Under the bipartisan Corporate Transparency Act (CTA), P.L.116-283, which Congress passed in 2021 as an anti-money-laundering initiative, reporting companies must disclose the identity and information about beneficial owners of the entities. For new entities incorporated after Jan. 1, 2024, reporting companies must also disclose the identity of “applicants” — defined as any individual who files an application to form a corporation, limited liability company, or other similar entity.

Companies created or registered before Jan. 1, 2024, must submit BOI reports by Jan. 1, 2025, while those founded or registered on or after Jan. 1, 2024, must submit the BOI report within 90 calendar days of registration. Companies founded or registered on Jan. 1, 2025, must submit the BOI report within 30 calendar days of registration. Companies must file updated or corrected BOI reports within 30 days of any modifications or updates to their company information or beneficial owners.

Treasury Secretary Janet Yellen told a House committee in July that FinCEN, which reports to Treasury, had received only 2.7 million BOI reports.

FinCEN outreach

In addition to the PSA outreach campaign, Treasury and FinCEN officials have participated in more than 130 in-person and virtual engagements this year to educate business owners and other stakeholders about BOI reporting, the release said. Last month, FinCEN reported that these outreach efforts had reached some 90,000 stakeholder groups.

Additional outreach includes intergovernmental partnerships such as with the IRS and the Small Business Administration; collaborations with secretaries of state and members of Congress; and engagement with industry groups, including the AICPA. FinCEN has also released a five-minute video demonstrating how to file a BOI report.

AICPA advocacy

The AICPA met with FinCEN on June 27 in Washington, D.C., to discuss BOI. The AICPA has advocated for a one-year delay in the effective date of BOI reporting “due to the lack of timely guidance” from FinCEN and a lack of awareness of the new rule among many small businesses.

Also, the AICPA submitted comments to FinCEN in February 2022, urging it to consider the burden and cost imposed by BOI reporting requirements affecting small businesses, including small CPA firms. It also created its AICPA & CIMA BOI reporting resource center.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.