What Happens If You File Your BOI Report Late with FinCEN?

Late Filing Failure Consequences - Understand

The fine also comprises civil monetary penalties, including fines to be issued at the time of late submission of the BOI report to FinCEN. All these are charged to the entities that miss their set time for submitting the BOI reports. This therefore calls the seriousness and depth into consideration, depending on the size of the involved entity and the gravity of the violation.

Increased Scrutiny :It will attract more attention by FinCEN and other regulatory agencies because of more frequent audits and investigations.

Damages Your Reputation : Non-compliance with the BOI reporting requirements harms the reputation of your business entity and creates difficulties while doing business with certain partners or clients.

Criminal Charges :Depending on the jurisdiction, wilful failure to file a BOI report may be considered as a crime. This is, therefore, a sure imprisonment.

Reasons That May Result in Imprisonment Penalty

The imprisonment penalty that will accompany late filing of a BOI report depend on several factors:

Nature of Offense :Whether it was negligence or it was done intentionally fails to file within the required time can influence the degree of the punishment.

What to Do if You Filed Your BOI Report Late

Criminal record of Business Entity : This means that if the business entity has the history of failing to comply with the implemented FinCEN regulations, then penalties shall be tighter.

Size and Complexity of the Business Entity :The more complex the business entity is and the larger in size, then heavier the likelihood of compensation for filing late.

Now that you have realized that you filed your BOI report late, here's what you need to do first of all. I'll be listing a few steps to consider.

1. Contact FinCEN :That will help you explain the circumstances surrounding the filing. Be prepared to provide all documentation in support of your explanation.

2. Docket a Corrected Report :Docket the corrected BOI report as promptly as possible. All information to docket should be included in the report-either filed electronically or by mail.

3. Seek Professional Legal Counsel : Your attorney could guide you on how to docket the BOI late without exposing you to penalties.

4. Check Internal Practices :Your company needs to check its internal practices which it followed while preparing the BOI report in order to find if some weak practice led to this type of scenario and if there are measures taken which ensure that this will not happen at least in the future.

Critical Factors to Discuss

The following are factors by which you can determine whether your HOA should file a BOI report:

State Laws :Find out how your state governs BOI reports by corporation, nonprofit, or other incorporated entities.

Type of Legal Structure :Know the legal structure of your HOA and how it's limited to that.

Operations :Determine whether or not your HOA conducts operations with a high-risk level, which can include real estate investment and financial activities.

Filing BOI Reports

In case you decide to file BOI reports for your HOA, you may follow these steps:

1. Identify Beneficial Owners:Find out who the beneficial owners or owners of your HOA are. This may even prompt you to study your HOA's governing documents, bylaws, or articles of incorporation.

2. Gather Needed Information:Gather information on all the beneficial owners that will include name, address, date of birth, and citizenship.

3. Method of Filing Report:Determine whether you are going to file your HOA's BOI report online or by mail.

4. File the Report:File the completed report with the appropriate jurisdiction as required.

Knowing the effects of late filing and being proactive in observing the deadlines will protect the repute of your entity and save you a lot of levies.