What if I failed the new-entrant audit twice?
If a new entrant fails the safety audit and its corrective action isn't accepted, FMCSA revokes the new-entrant registration (49 CFR 385.325). The carrier can reapply as a new applicant only after the waiting period in 49 CFR 385.329 (30 days after revocation), and the new application goes through FMCSA's new-applicant review.
Failing twice usually means the carrier failed the safety audit and then the corrective action submitted under 49 CFR 385.319 didn't satisfy FMCSA (or wasn't submitted in time). At that point FMCSA revokes the new-entrant registration (49 CFR 385.325).
Under 49 CFR 385.329, the carrier can reapply no sooner than 30 days after revocation. A new application goes through FMCSA's new-applicant review, including the 10-day protest period after the FMCSA Register notice (49 CFR 365.203T); FMCSA controls the timing. The carrier then starts the new-entrant safety program again.
FMCSA reviews new applications for links to previously registered carriers, so a new entity formed by the same principals should expect its history to be considered.
For carriers facing a possible second failure, the priority is to avoid it. The corrective action plan must address every cited deficiency; surface-level fixes that don't show operational change are likely to fail. An experienced compliance consultant or transportation attorney can help prepare it.