We had a twist yesterday in the continuing saga over the Beneficial Ownership Information (BOI) reporting requirements from the Financial Crimes Enforcement Network (FinCen). Last week, Fincen said that it would announce new reporting deadlines not to exceed March 21st.
But in a news release, the Treasury Department said…
1 – “it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect.”
2 – The new release further stated that Treasury will “narrow the scope of the rule to foreign reporting companies only,”
Are any of you ready for this?
Let me leave you with this…
Congress passes a law. The lawyers on both sides go through months of arguing for and against it.
There are competing judgements for and against. Finally it gets to an upper court that upholds the law’s constitutionality, and the IRS decides to not enforce it. This proves something that I’ve told all of you time and time again.
The IRS can do anything it wants.
I can’t tell you how many times I’ve seen instances where Congress passes something and the President signs it into law. Shouldn’t the Service enforce whatever laws come across its desk?
Isn’t that how things are supposed to work?
Instead, the IRS goes through a process called “interpreting the law”. This could take weeks, months, or even years.
Sometimes at the end of that process, they send out a news release saying they won’t enforce it at all. Other times they don’t send out anything at all, but the end result is always the same.
They do whatever they want.
Another recent example of this are the 1099-K rules. If you’ll remember, a few years ago Congress passed a law saying that they had to send these out to people earning over $600 on credit card sales.
This threw smaller internet businesses into a panic. Prior to this, only those with sales over $20K had anything reported to the government, allowing many to not report their income.
The Service hemmed and hawed for years on this one, passing back the deadline again and again, always in contradiction to the laws of the land. They’re still not enforcing the law as it is written.
Again, they can do whatever they want.
Please remember this the next time we ask for something evidentiary to complete an income tax return. The only person we’re protecting is you.
Please also remember that the deadline for filing S Corp and Multi-Member Partnerships is Monday, March 17, 2025. That’s two Mondays from now.
If you own one of these types of entities, the business return will need to be completed before your personal return which is due on April 15th. There’s still plenty of time to get things done.
Get your work into 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, or Accounting and Tax Work, 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.SalarySolutions.net
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