Form 4022 Corporate Transparency Act Scam

Small business owners across the country have been receiving deceptive letters labeled "Form 4022" from an entity calling itself the "United States Business Regulation Department." These letters claim to enforce the recently enacted Corporate Transparency Act (CTA) and demand a fee of $117, threatening severe penalties for non-compliance.

While there is a new filing requirement for small businesses thanks to the CTA the “United States Business Regulation Department has nothing to do with it. It's important to know a form 4022, in regards to the CTA, DOES NOT EXIST. 

Form 4022 falsely claims its authority from the CTA, a law effective from January 1, 2024. It falsely asserts that failure to comply by the given deadline will result in civil penalties of up to $500 per day, additional fines of $10,000, and up to two years in prison. In reality, the CTA requires all small businesses to file beneficial ownership information with FinCen, and penalties apply only to willful noncompliance, not accidental oversight, contrary to the misleading claims made in Form 4022.

What is Required from the Corporate Transparency Act?

The CTA mandates that reporting companies submit a Beneficial Ownership Information Report (BOIR) to the Financial Crimes Enforcement Network (FinCEN). This report must include details about the company's beneficial owners and company applicants.

Key requirements include:

• Beneficial Owners: Individuals who own or control at least 25% of the company or exercise substantial control over the company.

• Company Applicants: Individuals who file an application to form a corporation or limited liability company. (Company Applicants are only required for businesses formed on or after January 1st 2024.)

Learn more about the penalties and timeline requirement for submitting in our BOIR 2024 article. 

Where Can I File My BOIR?

You can file your Beneficial Ownership Information Report (BOIR) directly with FinCEN through their secure online portal. If you don’t feel comfortable filing your BOIR yourself, you can partner with you CPA or ComplyBOI to assist you in filing your BOIR. 

Our BOIR filing service and software are designed to simplify this process, ensuring your compliance with the CTA. We offer an intuitive platform that guides you through each step of the filing process, minimizing the risk of errors and ensuring timely submission.