Important Business Scam Alert: Beware of Fake Government Business Compliance Notices

March 8, 2024

In today's business landscape, owners often navigate through various and intricate business regulations. One example is the recently enacted requirement under the Corporate Transparency Act for New Beneficial Ownership Reporting for Closely Held Businesses. Unfortunately, each new business regulation, such as the Beneficial Ownership Information (“BOI”) reporting, often results in scam opportunities by unscrupulous parties.

Recent scams involving Beneficial Ownership Information Reporting – Form 4022

Reports have surfaced indicating that some businesses are receiving fraudulent government business compliance notices related to the BOI reporting requirement. These scam notices mimic an official government form from the "United States Business Regulations Department," soliciting information and a payment of $117. However, it is crucial to note that there is no federally mandated Form 4022, and no department operates under the name United States Business Regulation Department.

These deceptive Form 4022 notices have also been addressed online at Business Defense Small Business Scam Alert and BBB Business Scam Alert.

What to do if you receive a fraudulent government business compliance notice

Business owners should be vigilant, recognizing the potential for receiving such scams and similar fraudulent activities. It is imperative not to respond to these notices and promptly report them to the Federal Trade Commission and the Better Business Bureau.

Finally, regarding the Beneficial Ownership Reporting requirement, in addition to our previous blog article New Beneficial Ownership Reporting for Closely Held Businesses, see also this update, including suggestions for attorneys to assist with the reporting.

If you have any questions regarding this article or require additional information about business scams, please reach out to your Herbein tax consultant.


Article Contributed by Barry Groebel.