Submission of a Beneficial Ownership Information (BOI) report is a significant compliance requirement under the Corporate Transparency Act (CTA). However, based on errors or updates to the ownership data, companies may need to update or correct a BOI report sometimes.
Being aware of how to correct a BOI report the right way assures that one follows the Financial Crimes Enforcement Network (FinCEN) regulations.
When to Correct or Update a BOI Report?
Companies should be update or correct a BOI report in the following situations:
- Mistake in the Initial Submission – If incorrect information was submitted in the initial BOI report, it must be corrected as soon as possible.
- Alterations in Beneficial Ownership – Alterations in the ownership pattern, such as new shareholders or in control, must be notified.
- Amendments in Personal Information – When the legal name, address, or identification number of a beneficial owner is altered, it must be amended.
- Restructuring of an Entity—When a company’s restructuring changes its beneficial ownership, a new BOI report must be filed.
How to Correct a BOI Report?
When filed incorrectly, the company must correct a BOI report it as soon as possible. Follow the following steps:
- Log into BOI Filing Portal of FinCEN – Log in with the same credentials used for original filing.
- View Filed Report – Locate the original report to be updated.
- Make Amendments – Make any incorrect information correct, accurate.
- Submit Replaced Report – Once all the amendments are verified, submit the updated report.
- Record Keeping – Keep copies of the updated report to refer to at a later point.
How to Update a BOI Report for Changes
In the event of change in ownership or structure, businesses must update their BOI report within 30 days of the occurrence. The process is below:
- Get New Information – Obtain the new beneficial owner’s information, e.g., full legal name, date of birth, residential address, and identification number.
- Log into FinCEN’s BOI System – Log in to make updates as needed.
- Update Ownership Info – Update previous information with new information.
- Check and Submit – Verify before submitting.
Conclusion
Maintaining the integrity of a BOI report is critical to adhere to FinCEN regulations. Companies should quickly update or correct a BOI report whenever ownership information changes.
Remaining proactive helps keep companies in compliance. If you are uncertain about how to file corrections or updates, it is best to consult a compliance or legal professional.