Failing to file a Beneficial Ownership Information (BOI) report with FinCEN can lead to severe penalties, both civil and criminal. If you’re wondering what are the penalties for not filing a BOI report, here’s what you need to know.
Civil Penalties
If your company fails to file or update the BOI report, you could face:
- Up to $500 per day the report is late
- Continuous fines until the violation is corrected
These civil penalties apply to entities that fail to file, provide false information, or neglect to update changes.
Criminal Penalties
In more serious cases, especially involving willful misreporting or fraud:
- Fines up to $10,000
- Imprisonment for up to 2 years
Criminal penalties usually apply when the failure is intentional or part of a scheme to hide ownership.
How to Avoid Penalties
To stay compliant:
- File your BOI report by the correct FinCEN deadline
- Keep your information accurate and updated
- Use trusted services like FormLLC.us to avoid costly mistakes
Final Thoughts
Still asking, “what are the penalties for not filing a BOI report?” They include daily fines, hefty criminal charges, and jail time. Filing is mandatory, and the best way to avoid penalties is to file early and correctly.
