Current status (as of June 2026). If your business was formed in the United States, the $500/day BOIR penalty does not apply to you. Under FinCEN‘s March 26, 2025 interim final rule, all US-formed entities and US persons are exempt, and FinCEN has confirmed it will not enforce penalties or fines against them. The penalties still exist — but only foreign reporting companies remain on the hook. The statute was upheld and a final rule is pending, so this is “not enforced for domestic owners today,” not “gone forever.”
You’ve seen the warning: file your BOIR or pay $500 a day, maybe go to jail. Those BOIR penalties are real — they’re written into the Corporate Transparency Act. The honest question isn’t whether the fines exist; it’s whether they apply to you. For most people reading this, the answer is no.
Quick answer: who can be fined for BOIR in 2026?
| Who you are | Do BOIR penalties apply in 2026? | The number |
|---|---|---|
| US-formed entity with US beneficial owners (most small businesses, LLCs, corporations) | No. Exempt; FinCEN won’t enforce penalties. | $0 |
| Foreign reporting company registered to do business in the US | Yes. Still must file; still exposed. | Up to $591/day civil |
| Foreign-formed LLC registered in New York | Yes — separate state law from Jan 1, 2026. | State penalty (commonly reported up to $250/day) |
If you’re in the first row, you can stop worrying. The rest of this page explains why — and what the people in rows two and three actually need to do.
What the BOIR penalties actually are (and who they reach)
Everything here applies to foreign reporting companies that still have to file:
- Civil penalty: up to $591/day.
- Civil cap: $10,000 per entity.
- Criminal (willful): up to 2 years and/or a $10,000 fine.
- Enhanced: if committed while breaking another US law, or involving more than $100,000 over 12 months, up to $500,000 and up to 10 years.
Criminal exposure attaches to willful failure, not honest mistakes, and there’s a safe harbor: honest errors corrected within 90 days may avoid a penalty. Foreign deadlines: registered before March 26, 2025 → April 25, 2025; on or after → 30 days.
Why you keep seeing “$500/day” or “$606/day” — and why both are wrong for you
Myth 1 — “domestic owners still face $500/day”
The $500/day figure is the original 2021 statutory number. It was overtaken on March 26, 2025, when FinCEN issued the interim final rule removing requirements for US-formed entities and US persons. FinCEN has stated it will not issue fines or penalties against them.
Myth 2 — “the 2026 fine is $606/day”
The correct inflation-adjusted figure is $591/day, set in 2025 and still in force through 2026. There was no 2026 increase: OMB confirmed civil monetary penalties hold at 2025 levels because the October 2025 CPI-U data was never published during the government shutdown. “$606/day” is incorrect — and it only ever mattered to foreign filers.
Penalties that do still apply: foreign companies and New York
Foreign reporting companies
If your company was formed outside the US but registered to do business here, you still file, and the federal civil penalty of up to $591/day still applies if you don’t.
The New York LLC Transparency Act
Effective January 1, 2026; after Governor Hochul vetoed S8432 on December 19, 2025, it applies only to non-US-formed LLCs — US-formed LLCs are exempt there too. It’s an annual filing, with penalties commonly reported up to $250/day, plus loss of good standing (Sidley).
Is this BOI penalty letter a scam?
Heads up. Filing your BOIR with FinCEN is free. FinCEN does not mail letters demanding payment or threatening “$500 a day.” If you got a letter or email with a fee and a payment link, treat it as a red flag.
Owners have reported being charged ~$120 by third parties and threatened with “$500 per day” to scare them into paying. The fear is the product. The only official source is fincen.gov — check there before you pay anyone.
Frequently asked questions
Is the $500/day BOI penalty real?
It’s in the statute, but $500/day is the 2021 figure and no longer applies to US-formed businesses. The current federal civil penalty is up to $591/day and applies only to foreign reporting companies.
Do I still have to file a BOIR in 2026?
If your business was formed in the US, no. Only foreign reporting companies still file.
Can you go to jail for not filing a BOI report?
Criminal penalties only attach to willful violations by entities actually required to file. Exempt domestic owners have nothing to file.
Does the penalty apply to foreign companies?
Yes — foreign reporting companies remain exposed to up to $591/day.
How much is the fine per day in 2026?
Up to $591/day for foreign filers. It did not rise in 2026. “$606/day” is incorrect.
Is FinCEN still enforcing penalties?
Not against US citizens, domestic companies, or their beneficial owners. Enforcement remains live for foreign reporting companies.
Can penalties be waived if I correct the report?
There’s a 90-day safe harbor for honest errors — relevant mainly to foreign filers.
I already filed but my info changed — am I fined?
If you’re US-formed, you’re exempt and FinCEN won’t penalize you. Foreign filers should keep info current and use the safe harbor.
The bottom line
For US-formed businesses, the $500/day BOIR penalty does not apply, FinCEN won’t enforce it, and there’s nothing to file. The statute was upheld and a final rule is expected later in 2026 — so this is “not enforced for domestic owners today,” not “gone forever.” If you’re a foreign reporting company, you still file and the penalties are real; we file your BOIR for a flat $99. That’s only for filers who genuinely still need it.
Sources
- FinCEN — requirements removed for US companies/persons
- Federal Register — interim final rule
- FinCEN — not issuing fines or penalties
- Baker McKenzie — 2026 CMP inflation adjustment nixed
- Sidley — NY LLC Transparency Act
Last reviewed June 2026. Not legal advice.
