What Are the Penalties for Late BOI Filing with FinCEN?
Missing a deadline can be stressful, especially when it involves something as important as the Beneficial Ownership Information (BOI) report. If you’ve just realized that you’ve missed your BOI filing deadline with FinCEN, you’re not alone. Many businesses find themselves in this exact situation, unsure of what to do next. This post will guide you through the potential consequences and the steps you can take to minimize the impact of filing your BOI report late.
What Is a BOI Report and Why Is It Important?
A Beneficial Ownership Information (BOI) report is a critical filing required under the Corporate Transparency Act (CTA). This report helps the Financial Crimes Enforcement Network (FinCEN) keep track of the individuals who own or control companies in the United States. It’s designed to enhance transparency and combat illegal activities such as money laundering and fraud.
Not all entities are required to file a BOI report. Find out if you have to report by checking if your company qualifies for any BOI exemptions. Understanding whether you or your clients are exempt can save you from unnecessary filings.
BOI Reporting Deadlines
Understanding the deadlines is crucial for compliance:
- For Companies Registered Before January 1, 2024: The deadline to file your initial BOI report is January 1, 2025.
- For Companies Registered Between January 1, 2024, and January 1, 2025: You have 90 calendar days from the date you receive notice that your registration or creation is effective. This grace period offers some breathing room to ensure your filing is completed on time.
- For Companies Registered After January 1, 2025: You must file your BOI report within 30 calendar days of receiving notice.
These deadlines are non-negotiable, and missing them can result in significant penalties.
Consequences of Filing a Late BOI Report
If you miss the BOI report filing deadline, you (and/or your clients) could face serious repercussions, including:
- Civil Penalties: For each day your report is late, you could be fined up to $591. This daily penalty accumulates quickly, creating a substantial financial burden.
- Criminal Penalties: More severe consequences include up to two years of imprisonment and a fine of up to $10,000. These penalties apply if you willfully fail to file your report, submit false information, or fail to correct/update previously reported information.
Common Reasons for Late Filing
Late filings often occur due to:
- Lack of Awareness: Many businesses are simply unaware of the BOI reporting requirements.
- Communication Breakdowns: Companies that rely on third-party service providers, who are not using specialized BOI software, may experience delays. These delays can happen when changes in beneficial ownership information aren’t communicated promptly, leading to missed deadlines.
What to Do If You’ve Missed the Deadline
If you realize you’ve missed your BOI filing deadline, take immediate action:
- Gather Necessary Information: Collect all the information required for your BOI report, ensuring accuracy and completeness.
- Contact FinCEN: Reach out to FinCEN or consult a legal professional to inform them of your situation and seek guidance.
- File Your Report: Submit the report as soon as possible. It’s better to file late than not at all, as each day you delay increases the penalties.
Leverage the Grace Period
One of the key aspects to remember is the 90-day grace period provided for companies registered between January 1, 2024, and January 1, 2025. This grace period gives you a critical window to ensure your filing is accurate and on time. However, navigating these deadlines can still be challenging, especially for firms managing multiple clients.
That’s where FincenFetch comes in. Our platform is specifically designed to assist CPAs and firms in managing BOI filings efficiently. With FincenFetch, you get:
- Automated Reminders: Never miss a deadline again. Our software ensures you’re always aware of upcoming deadlines, including the grace period, so you can file on time and avoid penalties.
- Efficient Management for Multiple Clients: FincenFetch allows you to handle multiple BOI filings across different clients, streamlining the process and reducing the risk of communication breakdowns.
- Peace of Mind: With our system, you can rest assured that your clients’ filings are managed accurately, even during the grace period, reducing stress and potential legal risks.
- And So Much More: From real-time updates to personalized support, FincenFetch is packed with features designed to simplify your workflow, keep you compliant, and give you the confidence to focus on what matters most—growing your business.
Avoid Late Filings, Streamline BOI Reporting with FincenFetch
Filing a BOI report late can have serious consequences, but it’s not the end of the world. By taking action and using the right tools, you can mitigate the impact and stay compliant with FinCEN’s regulations. The 90-day grace period is there to help, but leveraging it effectively requires the right strategy.
Don’t wait—Get your BOI report filed today. If you’re a CPA or firm managing multiple filings, schedule a demo now. Our expert team will help you find the perfect FincenFetch plan to streamline your reporting process, avoid costly penalties, and ensure peace of mind for both you and your clients.
