New Jersey Committee Offers New Guidelines For CPAs & EAs On BOI Filings

In January 2024, the Corporate Transparency Act went into effect impacting roughly 32.6 million businesses in the United States. The goal is to gain more transparency and fight illegal activity that often happens behind the walls of a company. The CTA will make it easier to track down the true owner of a business if there are suspicions of illicit activity.

That said, most businesses will be impacted by deadlines and the potential consequences for non-compliance. It is essential to be aware of the deadlines that impact your business and report your beneficial owners before then.

In most states, if you want a professional to do the report for you, you need to hire a lawyer. The tax attorneys In Scottsdale from Silver Law have an in-depth understanding of the BOI requirements and can do the filing. However, there has been debate in New Jersey as to whether CPAs or EAs can prepare a beneficial owner report. Does it go against the practice of law?

New Jersey Supreme Court Clarifies CPAs’ & EAs’ Role In BOI Reporting

Recently, a question was posed to the Supreme Court of New Jersey regarding whether or not a CPA or EA could file the beneficial owner report for businesses. When it comes to practicing law, someone who is licensed and qualified must be the one to handle situations that require legal knowledge, skill, and judgment. Individuals with a basic knowledge of law, but who are not formally educated in it are not allowed to practice.

When it came to the BOI report in New Jersey, there were suggestions that only attorneys were able to file on behalf of businesses as CPAs or EAs would be performing unauthorized practice of law. This has since been clarified by the Supreme Court who acknowledged that CPAs and EAs can file on behalf of businesses under certain circumstances.

When Can a CPA Or EA Legally File a BOI Report? New Jersey’s Guidelines Explained

Small businesses are relieved to find out that their CPAs or EAs are allowed to file the beneficial ownership under some conditions:

• The filing must be straightforward and simple.
• CPAs and EAs must inform the client that consulting a lawyer is recommended in more complex cases.
• CPAs and EAs must have an understanding of when a BOI report is too complicated for them.
• CPAs and EAs must stay up-to-date on the reporting requirements.

With over 32 million filings within the first year alone, the goal of allowing CPAs and EAs to file is to allow small businesses the option of getting help without having to pay for a lawyer. However, in more complicated cases it is recommended to hire tax attorneys in Scottsdale.

What Are Complicated BOI Reporting Circumstances That a CPA Or EA Could Not Handle?

Business structures vary and business interactions can get complicated. Because of this, it is possible for a business’ beneficial ownership information to be too complicated for a CPA or EA to handle. If that is the case, tax attorneys are a great option. If your business is a part of the following, it is likely you will need to hire an attorney to fulfill the BOI requirements:

• Complex ownership structures involving multiple entities or trusts.
• Foreign ownership involvement.
• Situations where the interpretation of ownership or control is ambiguous or disputed.
• When filing involves sensitive or confidential information.
• If BOI filing could expose the business or its owners to legal risks.

Hopefully either you or your CPA will recognize the need for a tax attorney if you fall into one of these situations. It is essential that BOI filing is done properly and the tax attorneys in Scottsdale from Silver Law can ensure compliance with peace of mind.

Impact Of New Jersey’s BOI Ruling On Other States: What Businesses Should Watch For

The recent ruling by the New Jersey Supreme Court may have broader implications for other states as time goes on. While each state has its own standards and regulations, it is not unheard of for other states to follow the lead of one. Likely, other states will be paying attention to whether or not the New Jersey ruling is effective and if so, they may follow suit.

Additionally, since the Corporate Transparency Act is a federal regulation, it is possible that there will be a call to uniformity between the states and how the BOI reporting is handled. Again, if New Jersey’s ruling proves advantageous, the federal guidelines may change as well.

Lastly, having CPAs and legal professionals collaborate due to complex BOI reports, helpful partnerships may grow within New Jersey and beyond providing clients with more holistic and thorough advice when it comes to their case.

Get In Touch With Our Tax Attorneys In Scottsdale From Silver Law For Help With Your Complex BOI Report
Filing you beneficial owner information can be complicated, but at Silver Law, we are here to help. Each of our tax attorneys has an in-depth understanding of the Corporate Transparency Act and can guide you on the steps you must take to ensure compliance in your complex situation. From foreign ownership involvement to filing sensitive information, we have the expertise necessary to handle your case.

Contact us today and have peace of mind knowing the inner workings of your business are handled.

Email: lchapman@silverlawplc.com
Website: taxcontroversy.com

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