FAR 91.25 briefly discusses the NASA Aviation Safety Reporting Program. In many respects, it's a "get out of jail" card to avoid enforcement action. The program is explained in Advisory Circular AC 00-46E.
Enforcement Action. When determining the type and extent of the enforcement action to take in a particular case, the FAA will consider the following factors:
(1) Nature of the violation;
(2) Whether the violation was inadvertent or deliberate;
(3) The certificate holder’s level of experience and responsibility;
(4) Attitude of the violator;
(5) The hazard to safety of others, which should have been foreseen; Par 7 Page 3 AC 00-46E 12/16/11
(6) Action taken by employer or other government authority;
(7) Length of time which has elapsed since the violation;
(8) The certificate holder’s use of the certificate;
(9) The need for special deterrent action in a particular regulatory area or segment of the aviation community; and
(10) Presence of any factors involving national interest, such as the use of aircraft for criminal purposes.
Enforcement Restrictions. The FAA considers the filing of a report with NASA concerning an incident or occurrence involving a violation of 49 U.S.C. subtitle VII or the 14 CFR to be indicative of a constructive attitude. Such an attitude will tend to prevent future violations. Accordingly, although a finding of violation may be made, neither a civil penalty nor certificate suspension will be imposed if: (1) The violation was inadvertent and not deliberate;
(2) The violation did not involve a criminal offense, accident, or action under 49 U.S.C. § 44709, which discloses a lack of qualification or competency, which is wholly excluded from this policy;
(3) The person has not been found in any prior FAA enforcement action to have committed a violation of 49 U.S.C. subtitle VII, or any regulation promulgated there for a period of 5 years prior to the date of occurrence; and
(4) The person proves that, within 10 days after the violation, or date when the person became aware or should have been aware of the violation, he or she completed and delivered or mailed a written report of the incident or occurrence to NASA.