FinCEN Update - In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability for failing to do so while the order remains in force. However, reporting companies may still choose to voluntarily submit their BOI reports.
More information is available on FinCEN’s website at https://www.fincen.gov/boi. Also, check out our recent blog.
FinCEN Update - In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability for failing to do so while the order remains in force. However, reporting companies may still choose to voluntarily submit their BOI reports.
More information is available on FinCEN’s website at https://www.fincen.gov/boi. Also, check out our recent blog.
FinCEN BOI Reporting Penalties for Late Filing and Non Compliance
Written by Stephanie Glanville
Stephanie Glanville is the Marketing Manager of TaxBandits. She has several years of experience with IRS tax forms and the funtionality of TaxBandits. With a passion to help business owners better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.
In this article, we cover the following topics:
1. When does FinCEN impose BOIR penalties?
Under the Corporate Transparency Act (2021), FinCEN mandates that most small businesses in the U.S. report their Beneficial Ownership Information. Failure to comply with the BOI reporting requirements can result in significant penalties.
FinCEN considers the following as violations of BOI reporting requirements and imposes penalties:
Failure of filing BOI report by deadline:
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If the company willfully fails to file the initial BOI report within the deadline, FinCEN will impose a penalty.
The BOIR deadline varies for each company based on its registration or formation date. For more information about the deadline, click here.
Failure to update or correct the initial BOI report:
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If the reporting company's initial report requires updates or corrections, they must be reported to FinCEN within 30 days. Failure to do so may also result in penalties.
Generally, corrections are required if you need to change any incorrect information on a previously submitted report. Updates are required if any changes occur in your company or to the beneficial owners’ information.
Willfully reporting false information:
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A company that provides false or fraudulent information in the BOI report will be subject to penalties. In addition, if any of the beneficial owners provide false information (such as a fraudulent identifying document), FinCEN will penalize that respective individual or entity.
If a company acknowledges that its initial report contained incorrect information and voluntarily submits a corrected report within 90 days of the original deadline, FinCEN provides a penalty safe harbor.
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
2. What are the penalties for violating BOI reporting requirements?
FinCEN imposes two types of penalties:
- Civil penalties: Businesses failing to file on time or providing incorrect information will be imposed a penalty of range up to $591 per day.
- Criminal penalties: Criminal penalties will be imposed for willful failure or providing fraudulent information with the FinCEN. Criminal penalties for non-compliance may include fines up to $10,000 or imprisonment for up to
two years.
Both individuals and corporate entities can be held liable for willfully violating BOI reporting requirements. This includes anyone who files false information with FinCEN or provides false information to the filer.
3. Tips for completing your BOIR filing on time with TaxBandits!
TaxBandits helps streamline the entire BOI reporting process. We offer various time-saving features that enable you to complete your BOIR filing in minutes. We also provide easy-to-follow instructions at every step of the process, ensuring you don't miss any important details.
Additionally, we offer exclusive pro features and pricing discounts for those who handle BOI filing for their clients
Ready to explore BOI reporting with TaxBandits?
