Corporate Transparency Act: BEWARE! The Scammers have Already Arrived!

Doing Business in USA or with US Persons, Uncategorized 1 Minute

As most of my readers know the Corporate Transparency Act (CTA) requires US entities (including for example, US LLCs, corporations, partnerships), and many foreign entities including those that register to do business in a state, to disclose to FinCEN of the Treasury Department, the identity of their beneficial owners. Information to be provided: name, date of birth, unexpired passport or driver’s license number and current address of beneficial owners (very broadly defined).  More on the CTA and challenges to its constitutionality can be found at my blog posts here, here and here.

FinCEN has issued a warning since it has learned of fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the CTA.

According to FinCEN, these fraudulent scams may include:

  • Correspondence requesting payment. There is NO fee to file BOI directly with FinCEN. FinCEN does NOT send correspondence requesting payment to file BOI. Do not send money in response to any mailing that claims to be from FinCEN or another government agency.
  • Correspondence that asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. Do not click any suspicious links or attachments or scan any QR codes in emails, on websites, or in any unsolicited mailings.
  • Correspondence that references a “Form 4022,” or an “Important Compliance Notice.” This correspondence is fraudulent. FinCEN does not have a “Form 4022.” Do not send BOI 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.

Posted: March 30, 2024

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