What happens if there are changes and inaccuracies in the reported information?
In addition to filing an initial BOI report, reporting companies must also update and correct information from previously filed BOI reports. Individuals who obtain FinCEN identifiers must also update and correct information previously reported to FinCEN.
If there is any change to the required information about the company or its beneficial owners in a BOI report that your company filed, the company must file an updated BOI report no later than 30 days after the date on which the change occurred. The same 30-day timeline applies to changes in information submitted by an individual to obtain a FinCEN identifier. A reporting company is not required to file an updated report for any changes to previously reported personal information about a company applicant.
The following are some examples of changes that would require an updated BOI report:
- Any change to the information reported for the reporting company, such as the registration of a new DBA.
- A change in beneficial owners, such as a new CEO, a sale that changes who meets the 25% ownership interest threshold, or the death of a beneficial owner. When a beneficial owner dies, resulting in changes to the reporting company’s beneficial owners, report those changes within 30 days of when the deceased beneficial owner’s estate is settled. The updated report should, to the extent appropriate, identify any new beneficial owners.
- Any change to a beneficial owner´s name, address, or unique identifying number provided in a BOI report. If a beneficial owner obtained a new driver’s license or other identifying document that includes the change in name, address, or identifying number, the reporting company also would have to file an updated beneficial ownership information report with FinCEN, including an image of the new identifying document.
Keep in mind the update requirement related to the special reporting rule for a minor child. When a beneficial owner who was a minor child reaches the age of majority, you must file an updated BOI report, identifying the individual as the beneficial owner and, if warranted, replacing their parent or legal guardian’s information with their own.
As with initial BOI reports, updated BOI reports should be filed electronically through the secure filing system. There is no requirement to report a company´s termination or dissolution.
If an inaccuracy is identified in a BOI report that your company filed, your company must correct it no later than 30 days after the date your company became aware of the inaccuracy or had reason to know of it. This includes any inaccuracies in the required information provided about the company, its beneficial owners, or its company applicants. The same 30-day timeline applies to inaccuracies in information submitted by an individual to obtain a FinCEN identifier.
There are no penalties for filing an inaccurate BOI report as long as it is corrected within 90 calendar days of filing. Corrected BOI reports should be filed electronically through the secure filing system.
If your company filed a BOI report and later qualifies for an exemption from the reporting requirements, your company should file an updated BOI report to indicate that it is newly exempted from the reporting requirements.
Updated BOI reports should be filed electronically through the secure filing system. An updated BOI report for a newly exempt entity will only require that the entity identify itself and check a box noting its newly exempt status.