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Watch Out For "Corporate Transparency Act" Scams.

By Adam Sweet, Ben Peeler, and Maggie Ochoa.
October 30, 2024
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Key Takeaways

  • Corporate Transparency Act beneficial ownership reporting is a real thing.
  • So are scams.

Many businesses are just learning about the need to report their ownership to the Treasury under the Corporate Transparency Act. While a lot of businesses haven't gotten the memo, scammers have. As a a result, the Department of the Treasury and Office of Inspector General for Tax Administration are urging businesses to be vigilant and stay alert regarding certain fraudulent schemes attempting to solicit Benefit Ownership Information and payments purportedly due under the Corporate Transparency Act. 

Recently many businesses have received a fraudulent Form 5102 requesting Benefit Ownership Information and a filing fee. This is a fraudulent form and should be discarded immediately.

The Office of Inspector General is aware of this scheme in addition to others and has released information on the following fraudulent scams:

  • Correspondence that references a “Form 4022” or “Form 5102” is fraudulent.  FinCEN does not have a “Form 4022” or a “Form 5102.”  The Office of Inspector General warns businesses to not send Business Ownership Information to anyone by completing these forms. 
  • Correspondence or other documents referencing a “US Business Regulations Dept.” This correspondence is fraudulent; there is no government entity by this name.

Furthermore, the Office of Inspector General also advises businesses to watch out for any of the following:  

  • Correspondence requesting payment. There is NO fee to file Business Ownership Information directly with FinCEN. FinCEN does NOT send correspondence requesting payment to file Business Ownership Information. Do not send money in response to any mailing regarding filing your beneficial ownership information report that claims to be from FinCEN or another government agency.  
  • Correspondence that asks the recipient to click on a suspicious URL or to scan a suspicious QR code. Those e-mails or letters could be fraudulent. Do not click any suspicious links or attachments or scan any suspicious QR codes.    
  • Correspondence regarding penalties. FinCEN does NOT send initial correspondence regarding CTA penalties via e-mail or over the phone. Do not submit payments via phone, mail, or websites as requests/directions to do so are fraudulent.   
  • Use caution when you receive correspondence from an unknown party. Verify the sender. Never give personal information, including regarding beneficial ownership to anyone unless you trust the other party. 

What to do if you received these forms?

Discard the forms immediately.

For more information, please visit https://oig.treasury.gov/fraud-alerts  

 

  

 

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About the Author(s)

Adam Sweet

Adam Sweet, J.D., LL.M.

Principal
Adam leads Eide Bailly's Passthrough Entity Consulting group. He has extensive knowledge in the area of partnership tax, including interpreting partnership agreements, allocation and distribution provisions, and issuing compensatory equity. He is also experienced with both the buying and selling sides of domestic and foreign joint ventures, tax credit partnerships and a variety of IRS controversy matters. Adam also leads Eide Bailly’s Opportunity Zone working group.
509.252.4019
Ben Peeler

Ben J. Peeler, J.D., CPA, LL.M.

Partner/IRS Tax Controversy Practice Leader
Ben joined the firm early in 2014 with many years of tax experience, both as an attorney and an accountant. He specializes in federal tax, controversy and procedure work, assisting with clients in the areas of income tax, estate and gift tax, property tax, sales and use tax, estate planning and many other tax matters. Ben's vast experience includes representing clients before the IRS, as well as representing the IRS before the U.S. Tax Court and during litigation before the federal district courts as a special assistant to the United States Attorney. Today, Ben leads the firm's IRS Practices & Procedures as a federal tax, controversy and procedure specialist and serves on Eide Bailly's National Tax Office team that is committed to helping clients resolve their tax issues.
801.456.5476

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