While correcting a BOI report is not difficult, it is better to avoid making mistakes in the first place.
Below, you will learn why.
Why Accuracy Matters in BOI Reporting
Accuracy matters a lot in BOI reporting. FinCEN has the authority to impose civil and criminal penalties for failing to comply with the BOI reporting rule. Therefore, it is crucial that you report the correct information about your beneficial owners and company applicants and that you update it whenever there are changes.
Why You Need to File a BOI Report
BOI stands for beneficial ownership information, and it refers to the details of the individuals who ultimately own or control your company.
The BOI reporting rule was issued by FinCEN to enhance the transparency and accountability of the U.S. corporate system and to prevent the abuse of shell and front companies by criminals, corrupt actors, and tax evaders.
The BOI reporting rule requires certain businesses to report information to FinCEN about their beneficial owners and company applicants (the individuals who form or register the companies).
The purpose of the rule is to create a secure and confidential database of beneficial ownership information that can be accessed by authorized law enforcement agencies, financial institutions, and other entities for legitimate purposes.
By filing your initial BOI report, you are helping to protect the U.S. national security and financial system from illicit use. You are also demonstrating your commitment to ethical and responsible business practices and enhancing your reputation and credibility among your customers, partners, and regulators.
Correcting a BOI Report
If you discover that you have reported inaccurate information in your BOI report, you should not panic. FinCEN has provided a simple and convenient way for reporting companies to correct their BOI reports online, using the BOI E-Filing System.
Once you become aware of the inaccuracy, you have 30 days to correct it. To do so, you simply have to file the corrected information using the online filing system.
Although there are no penalties for filing an inaccurate BOI report provided it is corrected within 90 calendar days of when it was filed, it is best to avoid reporting inaccurate information.
How to Avoid Reporting Inaccurate Information
Here are some tips to help you avoid BOI reporting mistakes:
- Make sure you understand the definitions and criteria for reporting companies, beneficial owners, and company applicants. You can find detailed explanations and examples on FinCEN’s website.
- Use the FinCEN ID option to simplify your reporting process. A FinCEN ID is a unique identifier that you can obtain from FinCEN and use to report your beneficial ownership information. This way, you do not have to provide the same information every time you file your BOI report.
- Check the accuracy and completeness of the information that you report to FinCEN, and make sure that it matches the information that you have on file. You should also obtain the consent and cooperation of your beneficial owners and company applicants and inform them of their obligations under the BOI reporting rule.
- Seek professional assistance if you have any doubts or questions, especially if you have a complicated corporate structure or multiple beneficial owners. If you are not sure how to comply with the BOI reporting rule, you should consult a qualified attorney who can advise you on the best course of action for your specific situation.
Do You Need Help with Your BOI Report?
BOI reporting is not something that you should take lightly. It is a serious legal obligation that can have significant implications for your business. That is why you need a trusted and experienced law firm to help you file your BOI report.
At Jurado & Associates, P.A., we have the expertise and the resources to assist you with all aspects of BOI reporting, from filing and updating your BOI reports to correcting any errors or omissions and defending you against any potential penalties or lawsuits.
We will take care of everything for you, from gathering and verifying the information to submitting and monitoring the reports.
If you are looking for a reliable and reputable law firm to help you with your BOI reporting needs, look no further than Jurado & Associates, P.A.