Last month, FinCEN provided 6 Month relief for certain small businesses affected by hurricane damage to file BOI reports, including updates or corrections to previous reports.
FinCEN extended the filing deadlines for reporting companies that have an original reporting deadline beginning one day before the date the specified disaster began and ending 90 days after that date and are located in an area designated by the Federal Natural disasters like hurricanes can wreak havoc on businesses, leaving them with significant damage, displaced employees, and disrupted operations. For businesses affected by hurricanes, fulfilling regulatory requirements—such as Beneficial Ownership Information (BOI) filings—can quickly fall down the list of priorities as they focus on recovery efforts. To support businesses in these situations, regulators often offer relief options for BOI filings. In this post, we’ll explore how hurricane relief applies to BOI filings, when to consider requesting it, and how it can help your business recover without risking compliance issues.
Understanding BOI Filing Requirements
BOI filings are mandatory for many businesses to provide transparency around ownership, which is essential in combating illicit financial activity. The information collected through these filings is shared with government authorities and can include the names, addresses, and other identifying details of individuals with significant ownership or control in the company. While these filings are typically expected on a set deadline, unforeseen natural disasters like hurricanes can create extenuating circumstances that require flexibility.
How Hurricanes Impact BOI Filing Capabilities
Hurricanes can lead to widespread power outages, communication disruptions, and physical damage to offices and records. They can also displace employees and lead to a loss of access to critical information systems. With these challenges, businesses may struggle to meet their BOI filing requirements on time. Here’s how hurricane impacts can specifically disrupt BOI filing:
Damage to Physical Records and Files: If a business relies on physical records for ownership information, hurricane-related flooding or wind damage can result in the loss of critical documents.
Loss of Access to Digital Systems: With hurricanes often causing power outages, some businesses may lose access to online filing systems and essential data.
Employee Displacement: Staff members responsible for compliance may be unavailable due to personal evacuation, temporary relocation, or family care needs, which can delay the filing process.
Temporary Business Closures: Hurricanes may force some businesses to close temporarily, making it difficult for them to fulfill compliance obligations on schedule.
Relief Options Available for BOI Filings
In recognition of the severe impact that hurricanes can have on business operations, regulatory agencies may offer relief measures to businesses within declared disaster areas. Here’s what this relief might entail:
Extended Deadlines: Regulatory bodies may grant automatic extensions for BOI filing deadlines for businesses impacted by hurricanes. These extensions give companies more time to recover and access necessary resources without facing penalties.
Waived Penalties: For businesses unable to meet the deadline due to hurricane-related disruptions, regulators may waive late-filing penalties, especially if these businesses can document their circumstances.
Simplified Extension Requests: Some agencies may allow for an easier process to request extensions or defer filing until operations stabilize, particularly for businesses in regions where hurricane-related destruction was severe.
These relief measures allow businesses to focus on recovery and stability before resuming their compliance activities, helping to alleviate the added stress of meeting immediate regulatory demands.
Steps to Take If Your Business Needs BOI Filing Relief
If your business has been affected by a hurricane and you need relief for BOI filings, here’s how to proceed:
Check for Announcements from Regulatory Agencies: Regulatory bodies often issue official announcements or guidance for businesses in areas affected by natural disasters. These updates may include information on BOI filing relief and any automatic extensions available.
Document the Impact of the Hurricane on Your Operations: Maintain records of how the hurricane has affected your business’s ability to meet the filing requirements. This documentation can include photographs of physical damage, evidence of power outages, or records of office closures.
Request an Extension or Waiver (If Not Automatically Provided): If no automatic extension has been announced, reach out to the relevant regulatory body to formally request one. Be sure to provide documentation of the hurricane’s impact and explain why the extension is necessary for your business.
Stay Informed on Recovery Timelines: Keep track of when your business can realistically resume normal operations. Set reminders to follow up on your BOI filing as soon as you’re back to full functionality.