Tax and financial advice from the Silicon Valley expert.

Business Ownership Information Reports deadline is March 21, 2025

On February 18, 2025, the U.S. District Court for the Eastern District of Texas lifted the injunction for the filing requirement for Business Ownership Information (BOI) reports in Samantha Smith and Robert Means v. U.S. Department of the Treasury.  FinCEN has announced a 30-day extension of the filing date to March 21, 2025. 

Note the extension doesn’t apply for new businesses formed after December 31, 2023.

Businesses that have other extensions for disaster relief can still rely on those extended due dates.

Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.

The House of Representatives unanimously passed H.R. 736, Protect Small Businesses From Excessive Paperwork Act of 2025 on February 10, 2025, which would extend the deadline to January 1, 2025.  The Senate has referred the proposal to a committee.  Until the Senate passes it, the March 21, 2025 date remains effective. Considering the timeline, it seems unlikely the Senate will pass the extension before the deadline.

    For updates, watch the FinCEN web page, https://www.fincen.gov/boi.

    House bill takes from the poor; gives to the rich

    On February 25, 2025, the U.S. House of Representatives passed its Budget Reconciliation proposal, 217-215.

    The Senate previously passed its reconciliation proposal 52-48 on February 18, 2025. The Senate proposal is limited to increased spending over the next decade of $175 million for immigration enforcement and $150 billion for defense, while cutting other federal programs. They planned on passing additional guidelines for revenue and other cuts later.

    The House proposal fulfills President Trump’s requirement for a “big, beautiful bill” by providing the expected guidelines for federal revenue and spending for the next 10 years. It seems likely the Senate will also approve the House proposal and send it to President Trump for signature.

    The House proposal includes extending about $4.5 trillion in tax cuts adopted in the Tax Cuts and Jobs Act of 2017 that are expiring.

    It also lists increased spending of up to $110 billion for the Judiciary Committee, $100 billion for the Armed Services Committee and $90 billion for the Homeland Security Committee (immigration enforcement.)

    To reduce the resulting increase in the national debt, the proposal includes cuts of at least $880 billion by the Energy and Commerce Committee, $330 billion by the Education and Workforce Committee, $230 billion by the Agriculture Committee and other smaller cuts, leaving a net deficit of about $3.5 trillion, or $4 billion, including interest.

    The proposal consists of broad guidelines and not specific details, but it appears the largest cuts would come from Medicaid and food assistance programs, like food stamps and school lunches.

    Although President Trump has said “there will be no Medicaid cuts”, the House blueprint instructs the Energy and Commerce Committee, which oversees Medicaid, to come up with at least $880 billion in cuts, accounting for more than half of the reduction in the budget outline. There is no other item big enough for $880 billion in cuts.

    Medicaid pays medical bills for more than 70 million low-income Americans. Medicaid covers nearly half of all births in the U.S., and about two-thirds of nursing home stays.

    Adding a work requirement to the program would only save about $100 billion.

    Note interest expense is one of the largest items in the deficit, about $ 1/2 trillion. Interest continues to grow with higher interest rates and the ballooning federal debt.

    Since low-income taxpayers pay very little income taxes, the overwhelming beneficiaries of $4.5 trillion in tax cuts are high-income taxpayers, so Congress is financing their tax cuts by taking benefits from the poor and adding the rest to the national debt, which sucks up more funds to pay interest expense and leaves payment to future generations.

    These medical and food assistance cuts will hit voters hard in many “red” states. Moderate Republicans have expressed concerns about how their constituents will be affected.

    “The devil is in the details.” Congress will still have to work through the details of the tax cuts and the expenses outlined in the proposal.

    President Trump has also requested additional tax cuts, including exempting tips, Social Security benefits and overtime pay from income taxes, creating an itemized deduction for auto loan interest, and reducing the maximum corporate income tax rate from 21% to 15%. Adopting these changes would further increase the deficit.

    I expect Congress will be arguing about these matters for the rest of the year.

    President for a year

    Hosni Mubarak served as the autocratic president of Egypt for 30 years, succeeding the assassinated Anwar Sadat.

    When Mubarak said he intended that his son, Gamel, would be his successor, massive protests, facilitated by communication using Facebook and Twitter, exploded throughout Egypt during January and February, 2011. Egypt’s military forced him to transfer power to the Supreme Council of the Armed Forces and to resign during February, 2011.

    Mubarak’s ouster enabled the Muslim Brotherhood to participate openly in Egyptian politics, forming the Freedom and Justice Party. During April, 2012, the Freedom and Justice Party selected Mohamed Morsi as its candidate for president of Egypt. Morsi was elected President of Egypt in a runoff election on July 16 and 17, and sworn in on June 30.

    When his term as President began, Morsi was subordinate to the interim military government of the Supreme Council of the Armed Forces. He worked at establishing his authority, including revoking a constitutional declaration by the Armed Forces of June 17. He declared his authority as president would not be subject to any form of judicial oversight until a permanent constitution was in effect. The decree also removed the courts’ power to dissolve the Constituent Assembly, a 100-member body responsible for drafting a new constitution.

    Mass demonstrations were held against what was viewed as a seizure of dictatorial powers.

    On November 30, the Constituent Assembly approved a draft constitution written without the input of boycotting Christian and secular members. The draft constitution was approved by voters and became effective late December, 2012.

    Morsi rescinded parts of his constitutional decree but retained the article preventing the courts from dissolving the Constituent Assembly.

    Morsi declared martial law on December 9.

    Declining economic conditions, deteriorating public services, and a string of sectarian incidents intensified political polarization and strengthened opposition to Morsi’s rule. Clashes between Morsi’s supporters and critics in late June, 2013 culminated in massive anti-Morsi protests on June 30, 2013.

    On July 1, the head of the Egyptian Armed Forces, General Abdel Fattah al-Sisi, issued an ultimatum, declaring the military was ready to intervene to prevent chaos in the country. Morsi offered to negotiate with the opposition, but refused to step down.

    On July 3, the military suspended the constitution and removed Morsi from the presidency, about a year after he assumed the position.

    The Muslim Brotherhood was formally outlawed in September, 2013.

    Abdel Fattah al-Sisi, resigned from the military and was elected president of Egypt during 2014.

    Morsi faced trials for several offenses, including inciting Muslim Brotherhood supporters to kill demonstrators who participated in an anti-Morsi protest in 2012 and having colluded with foreign groups, including Hamas, Hezbollah and Iran’s Revolutionary Guards. Morsi refused to recognize the legitimacy of the proceedings against him and insisted he remained the president of Egypt. He died in prison on June 17, 2019 while his trials were being appealed.

    The military has much more political power in Egypt than in the United States. It’s highly unlikely we could see a military removal of a President of the United States. President Trump has fired high-ranking military officers who aren’t loyal to him.

    Our impeachment and trial process to remove a President has never been successfully used.

    The 25th Amendment to the U.S. Constitution provides the procedures for replacing the President or Vice President of the United States in case of death, removal, resignation or incapacitation. That amendment has only been invoked to replace the Vice President when Spiro Agnew resigned as Vice President, then to name Gerald Ford’s replacement as Vice President when Richard Nixon resigned, and occasionally for the Vice President to assume presidential duties when a President was indisposed, such as being anesthetized for surgery.

    In order for Congress to successfully declare a president “disabled,” two-thirds of the representatives in each chamber must conclude that he “is unable” to perform the duties of the office. Doing this seems highly unlikely with the current Republican majorities in Congress.

    “No” is a powerful word, especially when groups of people say it together. In the United States, we have a tradition of protest to initiate social change, such as Dr. Martin Luther King’s March on Washington, demonstrations for womens’ rights and the protests against the Viet Nam war. Participating in such protests and communicating to promote them using social media is a way to communicate your disagreement with current policies, possibly leading to change.

    Even when fascist powers overtook Europe during World War II, people found ways to resist, often at great personal risk.

    One of the reasons President Trump is taking such quick action is he doesn’t have much time to assert power. The mid-term election will take place in 2026. If U.S. citizens still have the power to vote, it’s possible they will send a strong “no” message and flip Congress. Remember the majority in the House of Representatives was “flipped” to Democrats in the 2018 midterm election.

    Tax and financial advice from the Silicon Valley expert.