As the year-end deadline for millions of initial Beneficial Ownership Information (BOI) reports passes, accountants and attorneys are transitioning to a new phase of compliance. The focus now shifts to ongoing considerations, including updates to existing reports and initial filings for newly formed entities. With these changes, professionals must evaluate how post-deadline BOI reporting and compliance integrates into their daily operations and how they plan to advise their clients.
Key Post-Deadline BOI Reporting Considerations for Professionals
Onboarding New Clients:
When taking on new clients, determining whether to request their BOI report transcripts should be a top priority. This step ensures that the client has complied with the filing requirements, and the information filed aligns with other entity documentation that is provided. If a client cannot provide their BOI transcript, it may signal non-compliance and the need for guidance.
Engaging Existing Clients:
Professionals should decide whether to proactively ask existing clients for copies of their BOI reports. While many have already taken the necessary steps to inform clients of their obligations, not all are offering services. If they are, there’s a possibility not all clients asked for assistance.
Following up on whether they have filed their reports and asking for a copy of the transcript opens the door to conversations about potential discrepancies or corrections that might be needed. Also, having the most recent transcript will help professionals keep an eye on when updates are needed. Another possibility is, they have changed beneficial ownership, but failed to tell you about that change that will affect their taxes.
Handling Incorrect BOI Information:
If a client provides a BOI report with incorrect or outdated information, professionals must decide how to proceed. Key steps might include:
- Identifying the errors and advising the client on exactly what needs to be corrected.
- Determining whether to handle the corrections in-house or refer the client to another specialist.
If planning to offer advice to clients, consider entering into formal engagements that explicitly define the scope of services and reduce liability.
Formalizing BOI Services:
As BOI compliance becomes a regular part of entity management, firms may consider offering dedicated BOI services. These might include preparing and submitting initial and updated BOI reports, reviewing BOI data with other filings, and providing ongoing compliance monitoring and reminders for clients. While the original plan was not to enter the BOI reporting space, reevaluating the offer of these services may reduce administrative burdens, keep clients out of legal trouble, and can generate additional revenue while addressing unavoidable client need. Don’t forget to charge accordingly for these additional services!
Looking Ahead
As compliance requirements evolve, BOI reporting might become a standard part of due diligence for entities and their advisors. By thinking ahead, accountants, attorneys, and other advisors can integrate BOI compliance into their practice, safeguard their clients, and position themselves as trusted advisors in this area.
The question is not only whether to assist clients with BOI compliance, the realistic question is are you prepared to adapt?
