FinCEN BOI Reporting Penalties

1. What are the circumstances under which FinCEN imposes BOI penalties?

FinCEN imposes Beneficial Ownership Information (BOI) penalties under certain circumstances, primarily when a reporting company fails to comply with the requirements of the Corporate Transparency Act (CTA) of 2020. Penalties may be imposed in the following situations:

• Failure to file Initial BOI Report on time: If a company that is required to file a BOI report with FinCEN fails to do so within the mandated timeframe, it may face penalties. This includes failing to submit an initial report, updated report, or corrected report as required by the law.
• Deadlines vary based on the company’s formation date, and failure to comply with these deadlines may lead to enforcement actions.
• Failure to update BOI Information: Companies are required to file an updated report if there are changes to their beneficial owners or other relevant information within 30 days of the change. Failing to update this information within the specified timeframe may result in penalties.
• Failure to correct errors in submitted reports: If a company becomes aware of an error in its submitted BOI report and fails to correct it within 30 days of discovering the mistake, it may be penalized.

2. Who is liable for violating BOI reporting requirements?

Both individuals and corporate entities can be held liable for violating BOI reporting requirements. Individuals who file false information or fail to report accurate information can face civil and criminal penalties. This includes individuals who file reports on behalf of a company and those who willfully withhold required information from a reporting company. Senior officers and individuals who cause or are complicit in failing to report correctly can also be held liable.

3. What are the penalties for violating BOI reporting requirements?

Failure to comply with the BOI reporting requirements described above will result in hefty penalties from FinCEN.

• Civil penalties may range up to $591 per day for non-compliance
• Criminal penalties may range from $10,000 or up to two years in prison.

4. When is the deadline for submitting the BOI Report?

For Initial BOI Report

The following are the deadlines for submitting the initial BOI report. This deadline can vary based on the reporting company's formation date.

• The existing company created or registered before January 1, 2024, must submit the report by January 1, 2025.
• The company created or registered on or after January 1, 2024, must submit the report within 90 days of effective registration.
• The company created or registered on or after January 1, 2025, must submit the report within 30 days of effective registration.

Note: As mentioned earlier, the companies must submit the updated or corrected report within 30 days of the occurrence of changes.

5. What are the consequences if a reporting company does not update or correct the information within the specified timeframe after rejection?

If a reporting company fails to correct a mistake or omission within 90 days of the timeframe for the original report, FinCEN will penalize the company with legal consequences and financial penalties.

6. File a BOI report in minutes with TaxBandits!

When filing a BOI report with TaxBandits, it takes around a minute to complete the entire reporting process. TaxBandits offers various time-saving and exclusive features to streamline your reporting process. Follow the minimal steps to submit the BOI report with TaxBandits.

• Step 1: Select BOI Reporting Type

• Step 2: Add the Reporting Company details

• Step 3: Add the Company Applicant details

• Step 4: Add the Beneficial Owner details

• Step 5: Review and Submit your BOI Report

Ensure you meet your deadline, avoid penalties, and simplify your BOI filing process with FinCEN through TaxBandits.