After a complete overhaul in the federal reporting rules regarding beneficial ownership information (BOI), Journal of Accountancy reports that the National Federation of Independent Business (NFIB) is now requesting the Treasury Department erase the BOI filings that have unnecessarily been submitted by domestic entities.

In a letter addressed to Treasury Secretary Scott Bessent on April 9, the NFIB insisted that Financial Crimes Enforcement Network (FinCEN) purge the information that was gathered prior to the March mandate which constrained reporting to foreigners only. 

Underestimating the scope of the BOI reporting rule, FinCEN believed that 32 million small businesses would need to report. Prior to the interim rule change, roughly 6.5 million domestic entities had already submitted their data.

Currently only about 12,000 foreign entities are projected to be captured under the rule, according to AICPA Vice President of Tax Policy, Melanie Lauridsen. 

“Congress must not procrastinate, and need to act immediately to adopt this relief into permanent law,” said NFIB’s vice president of federal government relations, Jeff Brabant in a news release—fulfilling his prior remarks directed towards Treasury regarding the disposal of previously acquired sensitive data to safeguard its potential exploitation. 

The NFIB, which represents more than 300,000 small businesses, serve as the lead plaintiff in Texas Top Cop Shop, Inc. v. Garland, contesting the original BOI rule.