House committee backs repeal of domestic BOI reporting, raising KPMG compliance work

A 26-25 House committee vote moved domestic beneficial ownership reporting closer to repeal, but for KPMG’s tax, risk and entity-compliance teams the bigger story is the churn. Clients that spent months building BOI workflows may now have to rewrite them again, while advisers sort out what to file, what to stop collecting and what to do with data already on the books.

The House Financial Services Committee approved H.R. 425, the Repealing Big Brother Overreach Act, on April 21 in a recorded vote listed as FC-269. The measure, introduced by Rep. Warren Davidson, R-Ohio, would remove domestic-owned companies from the Corporate Transparency Act’s BOI reporting rules while keeping foreign-owned companies in scope. It would also direct the Financial Crimes Enforcement Network, or FinCEN, to delete BOI information already collected for domestic owners and entities.

That deletion demand is what gives the fight its practical edge. For professional-services firms, the issue is no longer just whether a client files a form. It is whether entity data gathered for onboarding, remediation, risk reviews and beneficial-owner mapping should now be retained, purged or rebuilt around a narrower rule set. The committee action deepens the compliance whiplash that has already hit clients and advisers as the Corporate Transparency Act has been narrowed, challenged and revised.

FinCEN already issued an interim final rule on March 26, 2025, removing BOI reporting requirements for U.S. companies and U.S. persons. Current FinCEN guidance says all entities created in the United States, including those previously known as domestic reporting companies, and their beneficial owners are exempt from BOI reporting. Existing foreign companies that still had to report were given until April 25, 2025 to comply. In other words, the House vote would largely codify a shift the executive branch already made, while adding the separate question of whether previously collected domestic-company data should be erased by statute.

For KPMG professionals, especially those in tax, forensic, advisory and compliance work, that creates more than a technical cleanup. It affects how teams explain the rules to controllers, legal departments and owners who want a clear answer on entity structures, retention policies and enforcement risk. It also keeps BOI squarely in the advisory pipeline, even if the filing burden keeps shrinking.

Business groups have been pressing that same point. More than 100 business associations asked Treasury Secretary Scott Bessent in February 2026 to destroy domestic-company BOI records and finalize the exemption, and the National Federation of Independent Business made a similar push in April 2025. The message from Washington is that the rule is unsettled; the message for KPMG is that the work is not going away, it is changing shape.