BOI Reporting Violations: Fines and Penalties

Civil Penalties

Failure to file the required BOI report on time can lead to civil fines, which are imposed at a rate of $500 per day for each day the company is out of compliance. These penalties quickly add up, creating a substantial financial burden for businesses that overlook BOI filing requirements. To avoid these accumulating fines, consult our detailed guide on The BOIR Filing Process: A Complete Guide for 2024 and ensure your filings are timely and accurate.

• Daily Accumulation: Fines increase by $500 each day, potentially resulting in thousands of dollars of penalties if left unaddressed.
• Immediate Payment Requirement: Civil fines must be paid promptly to avoid further enforcement actions or additional penalties.

Criminal Penalties

Companies that willfully ignore BOI reporting obligations or knowingly submit false information may face criminal penalties under the CTA. Criminal consequences can include fines of up to $10,000 and imprisonment for up to two years. Engaging in intentional non-compliance also invites further regulatory scrutiny and potential investigations into additional areas of the business.

Criminal penalties underscore the importance of accurate reporting and adherence to the BOI requirements. To better understand what qualifies as beneficial ownership, see our guide on Beneficial Owners and the specific information required.

• False Reporting: Providing false information on a BOI report is a criminal offense and can lead to substantial fines and imprisonment.
• Investigative Consequences: Criminal penalties may trigger additional investigations by FinCEN and other regulatory bodies, placing the company under closer scrutiny.

Correcting Mistakes and Avoiding Penalties

Mistakes happen, and companies that identify filing errors or missed deadlines should act quickly to mitigate potential penalties. If a company realizes it has missed a BOI filing or submitted incorrect information, it should submit the corrected information immediately. Paying any applicable fines and keeping detailed records of the corrective actions taken can help demonstrate good-faith efforts to regulators in the event of an inquiry.

For information on key deadlines and dates, review our article on BOI Reporting Deadlines: Key Dates for Compliance. Adhering to these timelines is essential for maintaining good standing and avoiding potential fines or penalties.

• Immediate Corrections: Correcting errors as soon as they are identified reduces the risk of escalating penalties.
• Documentation of Good Faith: Maintain detailed records of any corrective actions to demonstrate compliance efforts in the event of an audit or investigation.