The BOI argument goes on

Herrick partner, Mark A. Limardo, spoke with Accounting Today about the current legal battles concerning the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirement. As it stands, enforcement of the CTA is currently enjoined by the Court of Appeals for the Fifth Circuit. According to the article, however, the issue is moving forward in other jurisdictions, with some courts approving the CTA requirements, while others have ruled against it. 

The article notes that the American Institute of CPAs continues to advise its members who are assisting clients with their BOI report filings to continue to gather the required information from their clients and prepare to file the BOI if the injunction is lifted. 

Mark concurred. "The filing itself is pretty light," he said. "The actual work is leading up to determining whether an entity is exempt and has to file at all. It can get fairly complicated to determine if they have an exemption. The law is still evolving on how exemptions will apply. And once you get past the exemptions, you have to figure out organizational documents, and who the 25% shareholders are. If a company is owned 75% by another corporation, you have to figure out who those shareholders are, and that can be a problem. The way things stand, you have to do everything you need to do so you can push a button on short notice, but on the other hand you may be spending a lot of money and time on something that may never go into effect."

Read the full article in Accounting Today here. Access may require a subscription.