Padgett President Roger Harris Testifies Before Congress

Calls for changes to implementation of Corporate Transparency Act for small businesses

WASHINGTON, May 20, 2024 /PRNewswire/ -- Roger Harris, president of North American tax and accounting franchise Padgett, testified this month before the House Committee on Small Business. Harris was asked to speak on the small business perspective during a full committee hearing titled, "Under the Microscope: Examining FinCEN's Implementation of the Corporate Transparency Act."

Harris's goal in attending this hearing on behalf of Padgett's firm owners and small business clients was to help clarify the current issues with the implementation of the Beneficial Ownership Information (BOI) reporting requirement that was created under 2021's Corporate Transparency Act (CTA). "The target audience impacted by the new BOI reporting requirement hits squarely at the businesses that we interact with every day... While I have no problem with the goals of the CTA... I do believe that the current implementation of the BOI reporting requirement, without adjustments, will likely lead to mass non-compliance," Harris stated in his testimony.

Harris's primary concern was the lack of understanding of this requirement within the small business community. Harris testified that, "For the majority of these small businesses, they do not have the internal capacity to track and follow the many regulations and compliance requirements that fall on their businesses." In many cases, they would turn to a trusted advisor such as an accountant, but as Harris shared with the committee, many tax professionals have been advised by legal counsel or insurance against assisting with the BOI requirement because of the potential risks and penalties involved.

During the hearing, Harris provided a few key recommendations to improve the BOI requirement. He advised that Congress suspend enforcement until all court cases are concluded, burdensome reporting deadlines be changed, language that currently discourages third-party providers from helping with this requirement is clarified, and FinCEN collaborate more closely with the IRS.

Harris shared, "This hearing today is a step in the right direction. I applaud the committees for hosting it."

About Padgett

Through a network of hundreds of individually owned firms, Padgett provides tax, accounting, payroll and advisory services to tens of thousands of small businesses across the U.S. and Canada. With an entrepreneurial spirit and more than 50 years of experience, Padgett aims to serve as trusted advisors and empower business owners to pursue their financial and personal goals. Learn more: padgettadvisors.com.

Padgett Advisors
Katarina Thomas
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SOURCE Padgett