01. International Tax

We provide tailored solutions to complex global businesses doing business in the U.S. Small or multinational, we guide clients through the maze of complex U.S. international tax rules.

02. Offshore Tax Compliance

We assist clients with specialized counsel to fix noncompliance with international tax reporting and penalties. FBAR, forms 8938, 8621, 3520, 926, 5471 and 5472 are among the most common forms that we solve through compliance programs such as streamlined procedures, Voluntary Disclosure Program or the Delinquent International Information Return Submission Procedures (DIIR).

03. Small Business Tax Planning

We assist small and medium businesses with efficient tax structuring to improve efficiencies. Proper tax election, s-corp elections and partnership planning are some of the main solutions offered.

04. Controversy Tax

We guide and represent clients before the IRS including examinations and appeals, as well as represent clients in Tax Court or Federal Courts.

05. Tax Debt Resolution

We help clients to face harsh collection activities, including liens, levies and obtaining a collection alternative such as an offer in compromise, installment payment plans, among others.

06. IRS Criminal Investigations

Our Firm provides representation before IRS Criminal Investigation Division, including Malta Pension Plans and summons.

07. High Net Worth & Family Offices

Assistance with estate planning for select clients and those with cross-border operations, planning for inheritance taxes, and gift taxes in the USA.

08. Start-Ups & Business Tax

No matter how small the idea, we assist clients with the best tax planning and alternatives for their business.

09. Crypto Tax

Our Firm provides tax planning and tax advice on crypto assets and crypto events, including mining, forks, rewards, and disposition/exchange of crypto.

10. BOI Report- Corporate Transparency Act

We assist business owners, CPA and tax preparation firms to file the Beneficial Ownership Information (BOI) report with the FinCEN.

BOI Reporting Penalties: Who Pays and How?

BOI Report

08.20.2025

As part of the Corporate Transparency Act (CTA), entities are required to report Beneficial Ownership Information (BOI) accurately and promptly to FinCEN. Noncompliance, whether intentional or due to negligence, can result in severe penalties. This article outlines the consequences for failing to comply with BOI reporting requirements and identifies those who can be held accountable.

Penalties for Violations

The CTA establishes both civil and criminal penalties for individuals who willfully violate BOI reporting obligations. Violations include:

    • Failure to File: Willfully neglecting to submit the required BOI report.
    • Filing False Information: Intentionally submitting false or misleading beneficial ownership data.
    • Failure to Update Information: Willfully failing to correct or update previously submitted information.

Civil Penalties:

Violators may incur daily fines of up to $500 for each day the violation continues. Adjusted annually for inflation, the current fine stands at $591 per day.

Criminal Penalties:

Willful violations can result in imprisonment for up to two years and fines of up to $10,000.

Liability for BOI Reporting Violations

Both individuals and corporate entities may be held liable for willful noncompliance. Below are scenarios in which specific parties could face penalties:

    • Individuals Filing on Behalf of the Company:

Any individual who knowingly files false or fraudulent BOI reports on behalf of a reporting company is subject to the same penalties as the company itself.

    • Senior Officers of the Reporting Company:

Senior officers can be held accountable if they knowingly participate in or fail to prevent noncompliance.

    • Beneficial Owners and Company Applicants:

Beneficial owners or company applicants who refuse to provide required information to a reporting company, thereby causing noncompliance, may also face enforcement actions.

    • Third Parties Providing False Information:

Liability extends to anyone who knowingly supplies false information that is subsequently reported to FinCEN.

Relevance for Taxpayers and Tax Professionals

Ensuring compliance with BOI reporting requirements involves proactive measures to avoid civil and criminal penalties. Companies must:

    • Establish internal controls to monitor compliance.
    • Conduct periodic reviews to ensure submitted BOI reports are accurate and up to date.
    • Educate employees and officers about the legal implications of BOI noncompliance.

Understanding the potential consequences of BOI reporting violations underscores the importance of accurate and timely submissions. Failure to adhere to these requirements not only jeopardizes individuals and entities financially but also exposes them to criminal liability.

For additional guidance on BOI compliance and strategies to mitigate risk, consult with a qualified legal professional.

This article is part of our ongoing series on BOI compliance under the Corporate Transparency Act. For more insights, visit our newsletter archives.