Perhaps because they know seniors remember a time when technologies were simpler, criminals increasingly prey upon them. But with age comes wisdom, and many older people are fast to remind would-be criminals that they weren’t born yesterday. Increasingly, they know how to spot possible fraud but law enforcement warns they should pay closer attention.

Here are some tips and considerations to help protect yourself.

At the Front Door

Sometimes trouble really does come knocking at your front door, but it’s also your side door you have to watch. Talking to someone at your front door can give an accomplice valuable time to run around back and break in. So, if the front doorbell rings, first check the other doors.

Frequently, people at the front door misrepresent themselves asdelivery persons, or the cable company or an electrician. Does the person have a real identification card that matches his or her driver’s license? Is there a truck to go with the uniform? If not, don’t open the door — your biggest piece of security equipment.

Carry your cell phone to the door with you, so you can speed dial 911 just in case of a problem — or use your pendant if you have central-station security. If you have a car with a remote “panic” button, you can hold that just in case. Any noise behind you, especially the other doors, and you can sound the alarm. A honking car alarm is annoying but may cause neighbors to check on you. Even if they don’t respond, thieves depend on not attracting attention, so the noise alone may be enough to scare them off or at least buy you some time to alert the authorities.

On the Telephone

The telephone lets people enter your home without a door. But, are callers who they say they are? If someone sounds suspicious, hang up. Charities need our help, but you never know who’s calling. Don’t give out personal information or do business with a stranger without first checking them out.

One common scam says the caller is from “The Help Desk” or “IT Department.” He has detected a problem with your computer and tries to sell you software to fix a problem that doesn’t really exist. Someone may call claiming to be from the IRS or the police department or your bank. Then, the caller asks you for your account information. The federal government will only notify you of a problem by mail, and other organizations will give you a real phone number where you can check them out. If you get these kinds of calls, they are probably scams.

Even caller ID is not always a safe bet. Scam artists make “spoof calls,” where they are able to put anything on your caller ID in the hope you will trust them as they steal your identity.

If a call seems to be from the police, call information and ask for the business number of your local police department (don’t tie up 911 with business calls), and then call them and ask them to check out if the caller was real. They never ask for account information.

If a caller says he or she is from your bank, the individual should already know your account number. You can phone the bank’s main number to check on the validity of the call. Or ask at your local branch where you know the bank employees and they know you.

Tax Scams

The IRS warns that scammers attempt to mislead taxpayers about tax refunds, credits and payments. They may pressure you for personal, financial or employment information. In some cases, they threaten victims with arrest or deportation if they don’t make a payment for a fake tax bill. Click here for more about the types of tax scams the IRS has identified.

Vendor Calls (live and phone)

When having work done on your home, get at least three solid bids. Seek bids from known vendors who have done good work for an acquaintance of yours. If someone comes to you unsolicited, be suspicious. Check the person out with the local town hall. See if he or she is licensed for the type of work you want done, and check with the local Better Business Bureau. Has anyone complained about the person online? Use a search engine to check it out.

Never give a partial payment to anyone before checking references. Speak to previous customers in your neighborhood. If the vendor has no references you can check, say no. Too many people have given someone a $5,000 deposit for a $100,000 contract — and never heard from these so-called vendors again. You may wonder why anyone would enter such a deal in the first place. Generally, the vendor presents a price that is too good to pass up. For example, he may look for a house with a roof that is badly in need of repair. He knocks on your door, tells you he’s replacing a roof on the next block and happened to pass by your house on his way home. He just happens to have materials left over and will do your roof for a fraction of the price if you can give him a deposit. Say no. Even if he is legitimate, he shouldn’t be asking for money up front.

Email and “Phishing”

Never respond to an email with money. If your credit card or bank tells you there’s a problem, don’t click on the email. Call the bank directly. Their number is on your last statement. There are just too many scammers asking you to do something right from the email. In fact, don’t even open an email until you know who sent it, because it could contain dangerous software or “malware.”

Another email scam is a new spin on the “confidence game,” where a con artist sends you a check, and in response you wire him much less cash. Often, it’s someone from Nigeria looking for the heirs of a wealthy industrialist who just died. The check always turns out to bounce after a recipient sends in a few thousand dollars of his or her money. If it sounds too good to be true, it probably is.

One heinous fraud comes when an emailer first hacks personal information about a relative. Then, the criminal positions the email as if he or she is the relative, stranded in an airport, unable to get home safely, without access to a phone, and must get $1,000 wired to a certain address immediately.

Under the pressure of a simulated threat to a relative, many will panic and send money. In reality, the relative has no knowledge this is even going on, and a simple phone call might prove that. Sometimes it comes as a phone call but be suspicious of any such situation.

Keep Your Guard Up

The scams described above are only some of the ways that thieves steal from honest people. New scams are being introduced all the time. We’re blessed to live in a golden era of technology. But where there’s gold, there will likely be criminals looking for people who will let down their guard. This is where wisdom and experience become invaluable.

If you’re self-employed, run your own small business, or have rental or investment income, there’s a good chance you must make quarterly estimated tax payments. These payments include income tax and, if applicable, self-employment tax. Failing to make them — or miscalculating how much you owe — can result in penalties and interest.

Who Needs to Pay Quarterly Estimated Taxes?

Anyone who receives income that isn’t subject to withholding may be required to make estimated tax payments. This typically includes:

• Independent contractors, such as freelancers, consultants and gig workers,
• Sole proprietors and small business owners,
• Partners in a partnership,
• S corporation shareholders,
• Landlords with rental income, and
• Investors with capital gains or dividend income.

Generally, you must make estimated payments if you expect to owe at least $1,000 in federal tax for the year after subtracting any withholding and refundable credits. This includes income tax and, to the extent applicable, self-employment tax (Social Security and Medicare).

When Are Quarterly Tax Payments Due?

The IRS divides the year into the following four payment periods, but the deadlines don’t align exactly with calendar quarters:

Estimated Tax Payment Schedule

If a due date falls on a weekend or holiday, it’s extended to the next business day. For example, June 15, 2025, falls on a Sunday, so the deadline is Monday, June 16, 2025.

How Are Estimated Taxes Calculated?

Calculating estimated taxes requires projecting total income, deductions, credits and withholding for the year. Specifically, here are six steps for the calculation:

1. Estimate total annual income from all sources.
2. Subtract deductions, such as above-the-line deductions (e.g., retirement plan contributions, self-employment deductions), the standard deduction or projected itemized deductions, and eligible business expenses.
3. Apply the appropriate federal income tax rate to determine your income tax.
4. Add self-employment tax, if applicable, which is 15.3% on net earnings from self-employment up to $176,100 for 2025 and 2.9% on net self-employment earnings over that amount.
5. Subtract any expected tax credits and withholding.
6. Divide the total by four to determine each quarterly payment.

Some quarters cover more months than others. For example, the June deadline covers just two months, while the January deadline covers four. Even so, the IRS generally expects equal payments throughout the year.

However, if your income is seasonal or fluctuates significantly, you may qualify for the annualized income installment method. Under this method, your payment amounts are adjusted based on when income was actually earned. This approach can help prevent penalties, but it’s more complex.

As you can see, properly estimating your income and deductible expenses and determining whether to use the annualized installment method is no small undertaking. Your tax advisor can help you with income and expense projections and the proper tax calculations.

What Happens If You Don’t Pay Enough?

Underpaying your estimated taxes can result in IRS penalties — even if you end up getting a refund when you file your return. Penalties are based on the underpayment amount, the length of the delay and the current IRS interest rate.

Common situations that trigger penalties are:

• Missing a payment,
• Paying after the due date, and
• Underestimating income and paying too little.

Safe harbor rules can help you avoid penalties. You’re generally in the clear if, through estimated taxes and withholding, you pay at least:

• 90% of your current year’s tax liability, or
• 100% of your previous year’s tax liability (110% if your adjusted gross income was over $150,000, or, if married filing separately, over $75,000).

If you have any income from which taxes are withheld, increasing your withholding might help you avoid penalties — and provide other benefits. See “An Alternative: Increase Withholding If You Also Have W-2 Income” below.

Tips for Staying on Top of Quarterly Tax Payments

Managing quarterly tax payments doesn’t have to be daunting. With some organization and a few smart habits, you can build a system that minimizes both the risk of penalties and your stress.

First, regularly set aside money for taxes. Consider opening a dedicated savings account to keep funds for taxes separate and automating regular transfers to the account if your income is steady.

How much should you save? A common rule of thumb is 25% to 30% of net income. But, depending on your marginal tax bracket, you may need to set aside more. If you have enough cash on hand, consider putting aside 5% to 10% beyond your estimates to cover unexpected income spikes or tax law changes.

How can you ensure you’re accurately estimating your taxes? Accountingtools or apps, such as QuickBooks, Xero and FreshBooks, can automatically track income and calculate estimated taxes. But these tools are only as good as the data you enter into them. If you aren’t properly recording all income and expenses, these solutions won’t provide accurate tax estimates.

It’s also critical to reassess your income and estimates every quarter and adjust your payments accordingly. Otherwise, you could end up underpaying taxes and owing penalties and interest — or overpaying taxes and giving the federal government an interest-free loan. 

If keeping track of deadlines isn’t your strong suit, you may want to automate your quarterly payments. You can use the Electronic Federal Tax Payment System (EFTPS) or IRS Direct Pay to set up automatic payments. This will ensure you make quarterly payments on time, but you still risk underpaying.

Easing the Compliance Burden

Estimating quarterly taxes may sound straightforward. However, it can be challenging to remember payment deadlines, project income and eligible deductions, and make any adjustments needed due to tax law changes. That’s why partnering with a knowledgeable tax professional isn’t just helpful — it’s smart business. Contact your tax advisor to stay compliant and avoid costly missteps. 

When you hire a nanny, housekeeper or another domestic worker, pay close attention to the tax rules.

Over the years, there have been news stories about political appointees and others who got into trouble because they didn’t pay nanny taxes. The same could happen to you.

You must generally pay Social Security, Medicare and federal unemployment taxes on wages paid to domestic workers who are considered “employees” under federal law.

However, you don’t have to bother with this if:

• You pay someone less than $2,800 in 2025 (up from $2,700 in 2024).
• You hire students age 18 or younger.
• You hire occasional workers like painters or house-cleaning services.

Beyond that, you have to determine if domestic helpers are employees under your control or independent contractors in business for themselves.

It’s not a simple question, but if the workers come part-time and advertise or hand out business cards, they’re probably self-employed and responsible for their own taxes. On the other hand, a live-in housekeeper or full-time nanny who works in your home is an employee.

If you believe a worker is an independent contractor: Put the arrangement in writing and keep a copy of the person’s business card, brochure or advertisement. Why do you need this protection? Sometimes, domestic helpers reveal the names of people they worked for when they apply for Social Security. Uncle Sam then sends out assessments for back taxes, penalties and interest — even many years later.

Because this is a confusing issue, consult with your tax professional to ensure you’re on the right track.

Termination can be painful, whether it’s for cause or part of a business slump that you can’t avoid.

Employees who are fired or laid off often have negative feelings about the company and some could act out their anger in damaging or violent ways. Of course, you can try to ease the pain by handing out generous severance  packages, outplacement benefits and counseling. Give out written information about the support the company will give and let employees know you are providing cushions, even though you aren’t legally required to. But don’t expect these provisions to satisfy all distraught ex-employees.

7 important precautions

The following seven steps can help keep your company safe from serious harm inflicted by former employees:

7. Have a supervisor or security officer discreetly pack an employee’s personal belongings and bring them to the waiting room. Verify that nothing is forgotten or missing. Have the person escorted to the parking lot and remove any vehicle stickers that allow entry into the parking lot or garage.

1. Before taking any action, discuss your plans with supervisors. Act quickly to avoid starting the rumor mill and giving employees time to think about ways to sabotage. And consult a labor attorney to discuss the issues.

2. Notify your security manager after employees have worked their last shifts – but before they return to work to receive news of the termination. (If you don’t have a security officer, consider hiring an outside firm to help in the termination process.) Plan to bar the employees’ access to the building when the termination interview starts, and deactivate any security codes the employees may have to the building.

3. Have your network administrator (with the help of supervisors) determine every computer system the employees can access and deactivate passwords. Common types of computer access include:

• Company intranets,
• Customer lists,
• E-mail lists,
• Company communications and library,
• HR systems involving benefits and job postings, and
• Databases used on the job.

4. Keep each termination interview private and compassionate. Avoid embarrassing ex-employees and assure them the details will be kept private.

5. During the termination interview ask for all company-related ID cards. Make sure employees return such equipment as cell phones and laptop computers.

6. Ask the security officer to accompany former employees to a private waiting room to pick up their belongings. Don’t let employees back into their work areas. You may be tempted to just escort them right to the reception area or parking lot, but this could be humiliating. Keep the entire procedure as private as possible.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently identified an increase in fraudsters using the bureau’s name, insignia and powers to target the public in widespread schemes. FinCEN is tasked with safeguarding the U.S. financial system from illicit activity, combating money laundering and terrorism funding, and providing financial intelligence to promote national security. Here’s a rundown of the latest schemes and tips to help you avoid them.

MSB Fraud

According to a December 2024 FinCEN alert, scammers are registering as money services businesses (MSBs) with FinCEN and using that registration to appear legitimate. Registered businesses may claim that FinCEN vets, approves or licenses them, but the bureau doesn’t confer any such approvals. Scammers sometimes engage in virtual asset investment scams, instructing victims to buy virtual currency and send the funds to fraudulent MSBs. They might also direct potential victims to FinCEN’s MSB Registrant Search Page to gain credibility with potential investors.

Potential red flags for MSB schemes include:

• A company that’s registered as an MSB with FinCEN but isn’t licensed by any state financial regulatory authority where it claims to operate,
• A registered MSB that shares a street address with other recently registered MSBs, and
• A company with a limited online or social media presence that prominently highlights its registration or claims to be licensed by FinCEN, alongside unverified testimonials and promotions of risk-free high-return investments.

Impersonation Scams

Criminals use FinCEN’s name and insignia to impersonate the bureau and its employees in government imposter scams. Typically, they contact people through “spoofed” phone calls, text messages, emails or U.S. mail. Spoofing occurs when a perpetrator disguises an email address, sender name, phone number or URL to convince victims that they’re dealing with a trusted source.

A FinCEN imposter may already know a victim’s name, Social Security number and account numbers from information available on the “dark web” from data breaches. Scammers might demand payments for outstanding debts or anti-money laundering and countering the financing of terrorism (AML/CFT) financing violations. They may also provide fake documentation from FinCEN officials and threaten the arrest or seizure of victims’ accounts. Alternatively, scammers might claim that victims are entitled to financial grants. However, to receive the funds, the victim must first provide bank account information and pay a fee to the imposter to release the funds.

Potential red flags for these schemes include:

• Receipt of a phone call, text, email or mail from FinCEN demanding immediate payment,
• Receipt of a letter from the FinCEN director, deputy director, or other FinCEN or Treasury Department official requesting immediate payment, and
• Notifications about AML/CFT violations, outstanding debts or a Treasury grant.

BOI Reporting Schemes

To be clear, U.S. companies and U.S. citizens are currently exempt from FinCEN’s beneficial ownership information (BOI) reporting requirements. But that hasn’t stopped fraudsters from claiming that the reporting requirements remain in effect and using scare tactics to steal money or personal information from unwary victims. (See “The Ongoing BOI Reporting Saga Is Now Over for Domestic Companies” above.) However, foreign entities may still be required to file BOI reports with FinCEN.

Ongoing confusion and uncertainty about the rules have created opportunities for fraudsters. For example, some scammers charge victims to prepare reports but never actually send them to FinCEN. They may also falsely claim FinCEN charges a filing fee. In addition to claiming to be legitimate third-party filing companies, scammers may use names similar to “FinCEN” or purport to be another government agency and send victims fake reporting forms.

Potential red flags for these schemes include:

• Third-party filing services with little or no online presence,
• Third-party filers with names similar to legitimate companies or government agencies, and
• Claims that failure to file or make a payment to FinCEN will lead to fines, penalties or legal action.

An Ounce of Prevention

The first step to avoid becoming a victim of these schemes is understanding how FinCEN operates. Notably, the bureau never:

• Contacts the general public to request payment or provide specific information (other than general information about BOI reporting) by phone, text, email or mail,
• Sends direct invitations to connect on social media,
• Demands immediate payment or asks people to move their money to a safe location,
• Freezes assets or blocks transfers,
• Requests payments to release funds or prove that you’re not involved in criminal activity,
• Charges for filing reports directly with FinCEN,
• Offers grants or collects debts, or
• Approves or endorses any business registered as an MSB.

If you’re unsure about an email, phone, social media or mail communication claiming to be from FinCEN, use the contact information listed on the bureau’s website to verify its legitimacy.  

Report Suspicious Behavior

If you receive questionable solicitations incorporating FinCEN’s name, immediately contact the Treasury Department’s Office of Inspector General and the Federal Trade Commission. Victims of cyber-enabled impersonation scams should file a complaint with the FBI’s Internet Crime Complaint Center and their nearest FBI field office. Your financial advisors can also advise you on more ways to safeguard you, your family and your assets from FinCEN and other fraud scams.

As the name implies, a “Savings Incentive Match Plan for Employees” (SIMPLE) is designed to be easy for employers to operate and for employees to manage their accounts. But the latest round of tax law changes is anything but simple. Among other key provisions, the SECURE 2.0 Act authorizes a complex set of new rules for “super” catch-up contributions from eligible older workers.

A SIMPLE Start

Let’s start with the basic rules for SIMPLE-IRAs — the most common and straightforward type of SIMPLE. (There are more complications with the lesser-used SIMPLE-401(k) version.)

SIMPLEs offer a simplified plan structure and reduced reporting requirements for certain small businesses. For starters, an employer can operate a SIMPLE only if it has no more than 100 employees who earned at least $5,000 in the previous year. Any employee who’s been paid at least $5,000 in compensation for any two prior years at the company — and expects to receive at least that much this year — can participate in the plan.  

SIMPLEs are available to virtually every type of business, including C Corporations, S corporations, limited liability companies (LLCs) and partnerships. Self-employed individuals can also use this setup.

Regular contributions to a SIMPLE are made on a pretax basis within generous limits, allowing them to grow and compound without any current tax erosion. Typically, the employer will offer a wide range of investment options, including mutual funds targeted to a retirement date.

In addition, an employer operating a SIMPLE must provide either:

• Matching elective contributions of up to 3% of compensation (but not less than 1% in no more than two out of five years), or
• Nonelective contributions of 2% of each eligible employee’s compensation.  

The maximum compensation taken into account for these purposes, which is adjusted annually for inflation, is $350,000 in 2025. Employer contributions made to employee accounts are generally deductible.

Contributions to SIMPLEs vest immediately, and employees can withdraw funds from the account anytime. But distributions made before age 59½ are taxable and may be subject to an additional penalty tax unless a special exception applies.

Important: The early withdrawal penalty from a qualified plan or traditional IRA typically equals 10% of the distribution amount. With a SIMPLE-IRA, however, the penalty is 25% for the first two years the employee participates in the plan. After the two-year period expires, the usual 10% penalty applies to early SIMPLE plan withdrawals.

When distributions are finally made, the payouts are taxed at ordinary income rates. Usually, plan participants will be in a lower tax bracket if they wait until retirement to take withdrawals. The required minimum distribution (RMD) rules for qualified plans also apply to SIMPLEs. As with other SIMPLE distributions, RMDs are taxed at ordinary income rates.

Contribution Limits for SIMPLEs

The limit on employee contributions to SIMPLE accounts is adjusted annually for inflation. For 2025, the contribution limit is $16,500 (up from $16,000 in 2024). Similar to 401(k)s, the tax law also allows participating employees age 50 or older to make catch-up contributions to help grow their nest eggs later in life. This is where things start to get tricky.

Notably, SECURE 2.0 established new rules based on company size and created a special category of employees allowed to make “super” catch-up contributions. So, there are now two kinds of catch-up contribution opportunities for older plan participants:

1. Regular catch-up contributions. For 2025, the limit for regular catch-up contributions made by employees ages 50 and older is $3,500. This figure is indexed annually for inflation but is the same for 2024 and 2025.

2. Super catch-up contributions. Beginning in 2025, employees ages 60 through 63 can contribute more to their regular SIMPLE account. The limit in 2025 is equal to the greater of $5,000, 150% of the regular catch-up contribution limit or $5,250. After age 64, the limit reverts to the regular catch-up contribution limit.

Thus, the basic maximum SIMPLE contribution in 2025 is:

• $16,500 for employees under age 50,
• $20,000 for employees ages 50 through 59 ($16,500 plus $3,500),
• $21,750 for employees ages 60 through 63 ($16,500 plus $5,250), and
• $20,000 for employees ages 64 or older ($16,500 plus $3,500).

But wait, there’s more. SECURE 2.0 throws a few extra monkey wrenches into the mix.

The 10% rule. The contribution limit for all eligible employees, regardless of age, is increased by 10% for an eligible employer with 25 or fewer employees. This increase is automatic if the employer had no more than 25 employees earning at least $5,000 in the prior year. What’s more, employers with more than 25 employees can elect to offer the 10% increase if they provide either:

• Matching contributions of up to 4% of compensation (instead of the regular 2%), or
• Nonelective contributions of 3% of each eligible employee’s compensation (instead of the regular 3%).

So, if you benefit from the 10% boost, your employer either has 25 or fewer employees or makes the higher matching contribution for nonelective contributions. When the 10% rule applies, the contribution limit increases to:

• $17,600 for employees under age 50,
• $21,450 for employees ages 50 through 59 ($17,600 plus $3,850),
• $22,850 for employees ages 60 through 63 ($17,600 plus $5,250), and
• $21,450 for employees ages 64 or older ($17,600 plus $3,850).

Note that the indexed limit for super catch-up contributions doesn’t benefit from the 10% increase regardless of the company’s size or if it makes matching or nonelective contributions.

Additional SECURE 2.0 Provisions

If all that wasn’t confusing enough, SECURE 2.0 includes other changes that affect SIMPLE plans. Significantly, employers can now establish Roth-type accounts within a SIMPLE plan, effective as of 2023, though Roth accounts aren’t currently mandatory. Unlike traditional SIMPLEs, contributions to a Roth SIMPLE will be included in the employee’s income in the year of the contribution.

However, RMDs won’t be required from Roth-type SIMPLE accounts. Also, if a SIMPLE permits Roth contributions, catch-up contributions must be made to this type of account for those earning above $145,000.

The rule requiring mandatory Roth-type catch-up contributions for high wage-earners was scheduled to take effect on January 1, 2024. However, the IRS postponed the effective date to January 1, 2026, to give employers more time to comply with the new requirements.

Finally, SECURE 2.0 increased the required beginning date (RBD) for RMDs from qualified plans and SIMPLEs from age 72 to age 73, beginning in 2023. The RBD is scheduled to increase to age 75 in 2033.

Late Start for Employers

Fortunately, it’s not too late if your company doesn’t already have a SIMPLE for the 2025 tax year. It has until October 1, 2025, to establish a plan that can receive 2025 contributions. If you have any questions about this option or the dizzying array of new SIMPLE rules, contact your professional advisors.

We’re thrilled to announce that our Managing Partner, Dennis Cole, has been named to Forbes’ inaugural list of America’s Best-in-State CPAs for 2025. This prestigious recognition, developed in collaboration with research firm Statista, honors standout Certified Public Accountants from across the United States for their professional excellence, commitment to client service, and contributions to the accounting profession.

The list was curated through a rigorous process involving peer recommendations, client feedback, and independent assessments of professional achievements. Those selected are seen as leaders in their field, demonstrating both technical knowledge and the ability to build lasting trust and results for their clients.

Dennis’ inclusion on this list is a testament to his dedication, leadership, and the exceptional work he has consistently delivered throughout his career. Under his guidance, Beers, Hamerman, Cohen & Burger has continued to grow and evolve—fostering a client-first culture and a standard of excellence we are proud to uphold.

“We’ve always known Dennis was among the best, but it’s wonderful to see that acknowledged on a national level,” said a member of our leadership team. “He brings integrity, expertise, and a personal touch to everything he does.”

To read more about this recognition, visit the official announcements:

• CTCPA News: 13 CTCPA Members Named to Forbes List
• Forbes: America’s Best-in-State CPAs 2025

Please join us in congratulating Dennis Cole on this well-deserved honor!

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently identified an increase in fraudsters using the bureau’s name, insignia and powers to target the public in widespread schemes. FinCEN is tasked with safeguarding the U.S. financial system from illicit activity, combating money laundering and terrorism funding, and providing financial intelligence to promote national security. Here’s a rundown of the latest schemes and tips to help you avoid them.

MSB Fraud

According to a December 2024 FinCEN alert, scammers are registering as money services businesses (MSBs) with FinCEN and using that registration to appear legitimate. Registered businesses may claim that FinCEN vets, approves or licenses them, but the bureau doesn’t confer any such approvals. Scammers sometimes engage in virtual asset investment scams, instructing victims to buy virtual currency and send the funds to fraudulent MSBs. They might also direct potential victims to FinCEN’s MSB Registrant Search Page to gain credibility with potential investors.

Potential red flags for MSB schemes include:

• A company that’s registered as an MSB with FinCEN but isn’t licensed by any state financial regulatory authority where it claims to operate,
• A registered MSB that shares a street address with other recently registered MSBs, and
• A company with a limited online or social media presence that prominently highlights its registration or claims to be licensed by FinCEN, alongside unverified testimonials and promotions of risk-free high-return investments.

Impersonation Scams

Criminals use FinCEN’s name and insignia to impersonate the bureau and its employees in government imposter scams. Typically, they contact people through “spoofed” phone calls, text messages, emails or U.S. mail. Spoofing occurs when a perpetrator disguises an email address, sender name, phone number or URL to convince victims that they’re dealing with a trusted source.

A FinCEN imposter may already know a victim’s name, Social Security number and account numbers from information available on the “dark web” from data breaches. Scammers might demand payments for outstanding debts or anti-money laundering and countering the financing of terrorism (AML/CFT) financing violations. They may also provide fake documentation from FinCEN officials and threaten the arrest or seizure of victims’ accounts. Alternatively, scammers might claim that victims are entitled to financial grants. However, to receive the funds, the victim must first provide bank account information and pay a fee to the imposter to release the funds.

Potential red flags for these schemes include:

• Receipt of a phone call, text, email or mail from FinCEN demanding immediate payment,
• Receipt of a letter from the FinCEN director, deputy director, or other FinCEN or Treasury Department official requesting immediate payment, and
• Notifications about AML/CFT violations, outstanding debts or a Treasury grant.

BOI Reporting Schemes

To be clear, U.S. companies and U.S. citizens are currently exempt from FinCEN’s beneficial ownership information (BOI) reporting requirements. But that hasn’t stopped fraudsters from claiming that the reporting requirements remain in effect and using scare tactics to steal money or personal information from unwary victims. (See “The Ongoing BOI Reporting Saga Is Now Over for Domestic Companies” above.) However, foreign entities may still be required to file BOI reports with FinCEN.

Ongoing confusion and uncertainty about the rules have created opportunities for fraudsters. For example, some scammers charge victims to prepare reports but never actually send them to FinCEN. They may also falsely claim FinCEN charges a filing fee. In addition to claiming to be legitimate third-party filing companies, scammers may use names similar to “FinCEN” or purport to be another government agency and send victims fake reporting forms.

Potential red flags for these schemes include:

• Third-party filing services with little or no online presence,
• Third-party filers with names similar to legitimate companies or government agencies, and
• Claims that failure to file or make a payment to FinCEN will lead to fines, penalties or legal action.

An Ounce of Prevention

The first step to avoid becoming a victim of these schemes is understanding how FinCEN operates. Notably, the bureau never:

• Contacts the general public to request payment or provide specific information (other than general information about BOI reporting) by phone, text, email or mail,
• Sends direct invitations to connect on social media,
• Demands immediate payment or asks people to move their money to a safe location,
• Freezes assets or blocks transfers,
• Requests payments to release funds or prove that you’re not involved in criminal activity,
• Charges for filing reports directly with FinCEN,
• Offers grants or collects debts, or
• Approves or endorses any business registered as an MSB.

If you’re unsure about an email, phone, social media or mail communication claiming to be from FinCEN, use the contact information listed on the bureau’s website to verify its legitimacy.  

Report Suspicious Behavior

If you receive questionable solicitations incorporating FinCEN’s name, immediately contact the Treasury Department’s Office of Inspector General and the Federal Trade Commission. Victims of cyber-enabled impersonation scams should file a complaint with the FBI’s Internet Crime Complaint Center and their nearest FBI field office. Your financial advisors can also advise you on more ways to safeguard you, your family and your assets from FinCEN and other fraud scams.

Big news for U.S. businesses! FinCEN has issued an interim final rule removing the requirement for U.S. companies to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act.

What does this mean?

• U.S.-created entities are no longer required to report BOI.
• Foreign entities still need to report but are not required to list U.S. persons as beneficial owners.
• FinCEN is accepting comments before finalizing the rule later this year.

Stay informed and ensure your business remains compliant.

Read more: fincen.gov

The twisty journey of the Corporate Transparency Act’s (CTA’s) beneficial ownership information (BOI) reporting requirements has taken yet another turn. Following a February 18, 2025, ruling by a federal district court (Smith v. U.S. Department of the Treasury), the requirements are technically back in effect for covered companies. But a short time later, the U.S. Department of the Treasury announced it would suspend enforcement of the CTA against domestic reporting companies and U.S. citizens. Here are the latest developments and what they may mean for you.

Latest announcement

On March 2, the Treasury Department stated the following in a press release: “The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.”

The reinstatement

On January 23, 2025, the U.S. Supreme Court granted the government’s motion to stay, or halt, a nationwide injunction issued by a federal court in Texas (Texas Top Cop Shop, Inc. v. Bondi). But a separate nationwide order from the Smith court was still in place until February 18, 2025, so the reporting requirements remained on hold. With that order now stayed, the new deadline to file a BOI report with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is technically March 21, 2025.

Reporting companies that were previously given a reporting deadline later than this deadline are required to file their initial BOI report by the later deadline. For example, if a company’s reporting deadline is in April 2025 because it qualifies for certain disaster relief extensions, it’s allowed to follow the April deadline rather than the March deadline.

Important: Due to ongoing litigation in another federal district court (National Small Business United v. Yellen), members of the National Small Business Association as of March 1, 2024, aren’t currently required to report their BOI to FinCEN.

BOI requirements in a nutshell

The BOI requirements are intended to help prevent criminals from using businesses for illicit activities, such as money laundering and fraud hidden through shell companies or other opaque ownership structures. Companies covered by the requirements are referred to as “reporting companies.”

Such businesses have been reporting certain identifying information on their beneficial owners. FinCEN estimated that approximately 32.6 million companies would be affected by the reporting rules in the first year.

Beneficial owners are defined as natural persons who either directly or indirectly 1) exercise substantial control over a reporting company, or 2) own or control at least 25% of a reporting company’s ownership interests. Individuals who exercise substantial control include senior officers, important decision makers, and those with authority to appoint or remove certain officers or a majority of the company’s governing body.

For each beneficial owner, under the requirements, a reporting company must provide the individual’s:

• Name,
• Date of birth,
• Residential address, and
• Identifying number from an acceptable identification document, such as a passport or U.S. driver’s license, and the name of the issuing state or jurisdiction of the identification document.

A reporting company also must submit an image of the identification document.

BOI reporting isn’t an annual obligation. However, companies must report any changes to the required information previously reported about their businesses or beneficial owners. Updated reports are due no later than 30 days after the date of the change.

Stay tuned

The temporary stay of the injunction in the Smith case applies only until the U.S. Court of Appeals for the Fifth Circuit rules on FinCEN’s appeal of the lower court’s original injunction order in that case. The appeal was filed on February 5, 2025. Additional challenges are also proceeding in other courts. It’s also possible that Congress will pass legislation to repeal the BOI requirements.

Meanwhile, the March 2 Treasury announcement appears to ease compliance concerns for domestic companies. However, FinCEN will continue to enforce requirements for foreign reporting companies. Contact us if you have questions about your situation.