The BOI FinCEN Soap Opera: A Confusing Legal Affair—Not a Tax Issue

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We’re attempting to bring humor to the humorless Beneficial Ownership Information (BOI) reporting drama. Enjoy this hot take from our very own Rob Flowers, Tax Director.

The recent BOI FinCen reporting soap opera is confusing! On again, off again, it’s akin to a middle school relationship wrought with frustration and wasted time.

In the most recent judicial ping pong match (where it lacks in confusion, it smacks in aloofness), they advise individuals with a reporting requirement to contact a lawyer specializing in this area of law. If you are not a financial crimes attorney or have a buddy who is, how do you know if you even have a BOI reporting requirement? As with anything perplexing, go straight to the source of truth. Nope, not TikTok, Wikipedia, ChatGPT, or the latest AI model du jour. Remember the good ole game of telephone? In this case, one can contact FinCEN directly for clarification via their website or phone (if you call within the allotted times on certain days of the week, of course).

If you ask me, it all sounds like the old Who’s on First comedy routine, but with a seriously horrendous outcome. With all this confusion, perhaps taking the approach of timing the weather in the tropics is best: If you dislike it, wait a while; it will change. However, before adopting that approach, be sure to confirm it with your lawyer concerning BOI FinCen reporting; otherwise, you may be paying a hefty bill to FinCen and doing some time in an orange jumpsuit versus lounging by the pool and paying a hefty tab for a few rounds of over-priced Mai Tais at a hotel tiki bar. Personally, I’d prefer the latter, and I’m pretty sure FinCEN would, too.

Next Steps

As we’ve written before, FinCEN’s reporting requirements are not an accounting or tax issue but a legal matter. Since this is outside the purview of CPAs and EAs, we cannot prepare reports or opine on BOI reporting issues. We encourage you to consult with legal counsel if you have questions regarding the applicability of the BOI reporting requirements and issues surrounding the collection of relevant ownership information.