Stay Alert: Protect Yourself from BOI Reporting Scams

Clint Weeder

Specializes in business tax planning, investment advisory services, business valuations

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As businesses adapt to the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA), it’s essential to be cautious of fraudulent schemes targeting those required to report. As of January 1, 2024, companies began to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). However, scammers are exploiting this new requirement to deceive and defraud businesses.

Here’s what you need to know to protect yourself from these scams:

  1. No Fees for Filing Directly with FinCEN
    Be cautious of any correspondence that asks for payment to file BOI. FinCEN does not charge a fee for filing reports directly through their system. If you receive any mail or communication claiming to be from FinCEN or another government agency that requests payment, it’s likely a scam. Do not send money in response to such solicitations.
  2. Avoid Suspicious Links and QR Codes
    Fraudulent messages may ask you to click on a URL or scan a QR code. These are designed to lead you to phishing sites or to download malicious software. Always be wary of unsolicited emails or letters that include links or QR codes, and never click on or scan them.
  3. Disregard Fake Forms and Notices
    Some fraudulent communications may refer to a “Form 4022” or an “Important Compliance Notice,” or they might mention a non-existent “US Business Regulations Dept.” FinCEN does not use these forms or departments, so any correspondence that includes these terms should be disregarded as fraudulent.
  4. Verify Information on Official Sources
    For accurate information about BOI reporting, visit FinCEN’s official website at https://fincen.gov/boi. If you need to file a report, you can do so for free through FinCEN’s secure e-filing system.

Understanding BOI Reporting

The CTA, enacted on January 1, 2021, aims to enhance anti-money laundering efforts by requiring certain companies in the U.S. to disclose their beneficial owners—those who ultimately control or profit from the company. This reporting requirement, which began in 2024, helps create a national database to support law enforcement and national security efforts by preventing the misuse of shell companies for illicit purposes.

As you navigate the new BOI reporting process, stay alert for potential scams and rely on official resources to fulfill your reporting obligations. Always verify the authenticity of any request or communication you receive, and remember that FinCEN’s e-filing system is the only legitimate channel for submitting your BOI report without any fees.

Additional Information

For additional information on the CTA and BOI reporting, check out our webinar that provides an overview or the act, reporting deadlines, and other important information. Link to webinar: https://mcmill.info/webinar-7-17-2024-corporate-transparency-act-cta-beneficial-ownership-information-boi-reporting/

If you have any questions, please do not hesitate to contact your CPA at 402-371-1160.