@PATAX   Some are leaving in disgust, but most of the people who voted overwhelmingly to enact it three years ago are still in Congress.  So don't get your hopes up. 

Similar attitude about "know everything about every company" in the UK is causing Barclays, which also does business in the US, to shut down charities that don't fill out the paperwork to their satisfaction.  They blame government regulation:

https://www.theguardian.com/money/2023/dec/09/charities-barclays-frozen-bank-accounts

But tax preparers who are living in some sort of dream world, where they can tell clients "I don't do those, go see a lawyer," need to wake up and smell the coffee.  Your clients' neighbors are going to tell them that their practitioner helped them with it.  If you don't know your client well enough to know who owns and controls the business, perhaps you should not be doing any work for them.  Will anyone be prosecuted for a good-faith effort to comply?  Anything is possible, but after the government has used a machine gun to kill a cockroach, they are going to be out of ammunition to attack the butterflies.