HERES 5 TIPS FOR DEALING WITH THE BOIR

1. What happens if I do not report a BOIR or fail to update, or correct the information within the required timeframe?

If you correct a mistake or an omission within 90 days of the deadline for the original report, you may avoid being penalized. However, you could face civil and criminal penalties if you disregard your Beneficial Ownership Information Reporting obligations.

2. What penalties do individuals face for violating BOIR reporting requirements?

As specified in the Corporate Transparency Act, a person who willfully violates the BOIR may be subject to civil penalties of up to $500 for each day that the violation continues addition to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information. It is important to note, that there are other such forms in which the penalties assessed are incredibly grotesque. We expect the same to happen with the BOIR.

3. Can an individual who files a report on behalf of their boss be held liable?

Yes. Along with the actual beneficial owner, an individual who willfully files a false or fraudulent Beneficial Ownership Information Report on a company’s behalf may be subject to the same civil and criminal penalties as the reporting company, and its senior officers.

4. Is the BOIR a tax form?

No, not at all. Your entity need not have any income, nor need to have an EIN in order to be required to file a BOIR. Yet it is expected that the BOIR, like the FinCEN FBAR form, will be administered by the IRS. So in audit situations where the IRS can’t find unreported income, the IRS will look to assess as many BOIR penalties as possible.

5. Is the BOIR constitutional?

Not at all. But the people who get to decide whether or not it is constitutional are on the same team - the Supreme Court is employed by the federal government and typically have no problem with laws that are clearly unconstitutional. The biggest problems associated with the BOIR is that there is no express power granted to Congress to pass this law. For nearly every regulation, the source of government authority comes from the interstate commerce clause. Yet, a state-created entity does not move in interstate commerce. It is purely involved in intrastate activities. Additionally, by mandating the reporting of this form, the government has violated the 4th Amendment Right; declaring against unreasonable search and seizures. Potentially this law could be overruled, and it should be.

The Bottom Line:

There is no value to a file Beneficial Ownership Information Report to the government. The value the government is looking for is being allowed to go after an entity or person with a missing BOIR or an incorrect one. Consequently, the government can easily unleash a penalty bonanza. That's why it is imperative that you get your BOIR filing done correctly.

Our firm with decades of experience filing other FinCEN forms may be your best protection from a government that wants to know everything about you because terrorism in the past has made it possible for the government to do so today.

We understand that navigating the intricacies of tax forms and government forms can be overwhelming, so we're here to assist you! Our team of experts can guide you through the process of choosing the best tax preparation strategy for your situation. We aim at insuring you optimize your tax benefits while minimizing your audit risk.

Remember, taking proactive steps now can save you from potential headaches and financial setbacks in the future!

Don't let the BOIR expose you to unnecessary audit risks!