We’ve recently become aware of two concerning fraud schemes targeting businesses across the country. As your trusted advisors, we want to ensure you have the information needed to protect your business and personal data.
Form 5102 Scam: Fake Beneficial Ownership Information Requests
Fraudsters are exploiting the recent Corporate Transparency Act (CTA) requirements by sending out fake “Form 5102” requests. Here’s what you need to know:
- These fraudulent forms may appear to come from the “Annual Records Service” or “US Business Regulations Dept.” While the forms seem official, these are not actual government entities.
- They request business information and payment.
- Important: Genuine Beneficial Ownership Information (BOI) reporting is conducted exclusively through the Financial Crimes Enforcement Network (FinCEN) website for no charge.
- FinCEN never sends unsolicited correspondence or payment requests via mail.
Here is a sample of what the fraudulent form may look like:
Action Item: If you receive any mail requesting beneficial ownership information and payment, discard it immediately.
Fraudulent Form 2848 Power of Attorney (POA) Filings
We’ve been alerted to a scheme involving fraudulent Form 2848 (Power of Attorney) filings. Here’s the situation:
- Clients are receiving IRS correspondence about incomplete Form 2848 filings.
- These forms list representatives who are not affiliated with the CPA or tax firm you’ve hired.
- Our investigation has uncovered that scammers are using stolen credentials from real CPAs who are not associated with your hired firm to file these fraudulent forms.
If you receive such a request from the IRS, it may indicate that your personal or business information has been compromised in an external data breach of your own systems. To be clear, Rea & Associates has not experienced any data breaches related to this issue. The letter you might receive may look something like this:
Action Item: To protect yourself from potential unauthorized tax return filings, we strongly recommend requesting an IP PIN from the IRS as soon as possible. This unique PIN will be required to file your tax return, adding an extra layer of security to the filing process. The IRS regenerates this PIN annually for your account, ensuring ongoing protection. By applying for an IP PIN, you are proactively preventing unauthorized tax filings in your name, giving you peace of mind and control over your tax return submission.
To keep your identity safe, the IRS has added resources to report tax-related identity theft.
Stay Vigilant, Stay Protected
At Rea, we’re committed to keeping you informed about potential threats to your financial security. While these schemes are concerning, staying informed and taking prompt action can significantly mitigate risks.
We’re here to help. If you have any questions or concerns about these fraud schemes or any other aspect of your financial security, please contact your dedicated advisor.
Stay safe, stay vigilant, and let’s work together to keep your financial information protected.