Written by Jordan B. Cohen.

On January 1, 2024, a new reporting requirement went into effect under the Federal Corporate Transparency Act (the “CTA”). Under the new requirement, corporate entities must report information about the individuals who own or control them to the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”). Since the requirement went into effect, many business owners have received a fraudulent, though official looking, document from “United States Business Regulations Department” in Washington, D.C. Inside the official looking envelope, labeled “Time Sensitive Mail,” is a document labeled “Form 4022” and titled “Mandatory Beneficial Ownership Reporting.” The official looking form is designed to induce the recipient into pay a fake filing fee.  Indeed, the fake form goes so far as to list “penalties” for non-compliance.

FinCEN and the U.S. Department of Defense have confirmed that “United States Business Regulations Department” is not a government entity and “Form 4022” is not an official reporting document.

FinCEN has also cautioned that this scam, and others like it, may include:

• Correspondence requesting payment. There is NO fee to file business owner information (“BOI”) 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 those forms.
• Correspondence or other documents referencing a “US Business Regulations Dept.” That correspondence is fraudulent; there is no government entity by this name.

(see: https://www.fincen.gov/boi; https://business.defense.gov/Resources/Scam-Alerts/).

We are available to you for more information, or if would like to speak with one of our attorneys about the CTA reporting requirements.

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