HARDI Joins Coalition Letter Supporting Small Business Tax Certainty and BOI Relief

Update: Treasury Finalizes BOI Relief for U.S. Businesses, Will Delete Existing Data

The Treasury Department has finalized its revised BOI reporting rule. The final rule preserves major relief for U.S. businesses, but one of the most significant developments is what the Financial Crimes Enforcement Network (FinCEN) plans to do with the BOI data it already collected.

FinCEN has stated that it intends to delete BOI information previously submitted by millions of U.S. companies and persons that are no longer required to report under the revised rule, directly addressing one of the central objections to the reporting mandate.

This is a significant development for many HARDI members that operate as closely held, family-owned, or small and mid-sized companies. Treasury estimates the revised rule will reduce reporting costs by roughly $9 billion per year.

This final rule is welcome news and a meaningful victory for small businesses. Still, the issue is not fully resolved. Because this relief was accomplished through regulation, a future administration could revisit or reverse it. That is why HARDI and its coalition partners continue to support a permanent legislative solution, whether through full repeal of the Corporate Transparency Act’s BOI reporting provisions or statutory language that locks in the current exemption for U.S. businesses.

Original Post 07-02-2026:

HARDI recently joined a coalition letter urging congressional leaders to protect small businesses from the return of burdensome beneficial ownership information reporting requirements and to build on recent tax and regulatory relief.

The coalition highlights the importance of maintaining recent relief from the beneficial ownership information, or BOI, reporting mandate. In March 2025, the Treasury Department exempted more than 32 million American businesses from the reporting requirement. According to the letter, that action saved small businesses from more than $128 billion in regulatory costs and compliance burdens.

However, the coalition warns that the relief is temporary unless Congress acts to make it permanent. Without a legislative fix, future administrations could revive the BOI mandate, bringing back costly compliance obligations and significant penalties for small businesses.

The letter urges Congress to prioritize either full repeal of the BOI reporting provisions or legislation to codify Treasury’s exemption for U.S. businesses. It specifically points to the National Defense Authorization Act as a potential vehicle to address the issue, since the BOI reporting mandate was originally enacted through the NDAA. Unfortunately, an amendment to repeal the BOI reporting requirement was not allowed by the House Rules Committee.

For HARDI members, this issue is directly tied to the broader challenge of operating in a complex regulatory environment. Many HVACR distributors are family-owned or closely held businesses that do not have large legal or compliance departments. New reporting mandates can create additional costs, paperwork, and uncertainty, taking time and resources away from serving customers, supporting contractors, and running day-to-day operations.

HARDI will continue to work with our coalition partners to find a permanent fix for the BOI reporting requirement.

Read the full text of the letter here.

Questions?

If you have questions, please reach out to Alex Ayers.

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