The Financial Crimes Enforcement Network (FinCEN) will issue a final rule that permanently removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act. The final rule is effective once published in the Federal Register.
Details of the ruling include…
1 – It adopts the exemptions set out in the interim final rule issued in March 2025, making the rollback of beneficial ownership reporting by U.S. companies permanent.
2 – It exempts U.S. persons who have obtained FinCEN IDs from any obligation to update or correct the information they originally provided to FinCEN to obtain those FinCEN IDs.
3 – It eliminates the requirement for foreign companies to report U.S. person “company applicants” (e.g., the individuals who helped those foreign companies register to do business in the United States).
4 – It confirms that FinCEN will delete information about any individuals that FinCEN reasonably believes is a U.S. person.
Under the final rule, foreign entities that are reporting companies will still be required to report beneficial ownership information for foreign individuals.
It looks like this ridiculous saga is officially over which is a good thing. The rule never would have been properly obeyed and FinCEN’s ability to enforce it was wholly lacking.
Let me leave you with this…
The California Billionaire Tax Act (Proposition 40), which imposes a one-time 5% tax on billionaires’ net worth, is vulnerable to numerous constitutional challenges, any of which could invalidate the tax in whole or in part.
Those vulnerabilities include but aren’t limited to…
1 – The retroactive residency date is fatally flawed under Supreme Court precedent barring retroactive imposition of a “wholly new tax.”
2 – The tax’s 100% apportionment system violates nexus, fair apportionment, and internal consistency requirements.
3 – The measure’s sweeping anti-avoidance rules include assets the taxpayer does not own, raising due process issues and, in certain cases, guaranteeing double taxation..
4 – By seeking to lock taxpayers into full liability whether they stay or leave, the tax burdens the right to travel, which could force the state to defend these provisions under strict scrutiny.
And the list goes on and on.
When a piece of proposed legislation is this poorly drafted, one begins to wonder whether or not the people behind it were serious in the first place. This thing is obviously dead on arrival.
Maybe its abject failure will dissuade others from also going on this fool’s errand.
If you’re having problems with your accounting and tax work, don’t hesitate to contact us today.
We’re all going to get through this. Let’s get through it together..
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
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