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National Business Registration

Also known as the National Companies Register Corporation, this company attempts to collect $487 under the premise of compliance with the Patriot Act of 2001. See an example of this notice. Several state offices have already issued scam alerts warning businesses of this deceptive practice.

Fictitious Business Name Renewal Center

This company sends a renewal form (see an example) to businesses that have filed fictitious names, also known as "Doing Business As" (DBA) names, with a county office. Their form references state statutes and looks like an official government form. However, this company is advertising a service not endorsed by any government agency. While a government office may require your business to renew a fictitious name, you can usually renew directly through that office or with the help of a reputable service company.

Various companies - advertisements for annual minutes services

The Company Corporation has received several reports of deceptive business practices regarding annual minutes. Though corporations must hold annual meetings and record meeting minutes, they need not file minutes with the state. Some customers have received "disclosure statements" that appear to be official state forms they must return with a fee. In fact, these forms are advertisements to complete annual minutes on behalf of your company. These advertisements often come from companies by the name of (State) Corporate Compliance or Corporate Headquarters. See examples for Arizona, California, New York, and Texas.

Hawaii Tax Refund Scam

The Hawaii Department of Taxation recently issued a warning regarding a new e-mail scam. Some Hawaii taxpayers have received a fraudulent e-mail claiming that the Department of Taxation owes them a tax refund. In fact, the e-mail attempts to collect personal information, such as Social Security Number and debit card number, from the recipient. Read the Hawaii Department of Taxation's notice here.

The Corporation Sole Tax Scam

Be wary of promoters offering a tax evasion scheme that misuses "Corporation Sole" laws. Promoters of the scheme misrepresent state and federal laws intended only for bona-fide churches, religious institutions and church leaders.

Scheme promoters typically exploit legitimate laws to establish sham one-person, nonprofit religious corporations. Participants in the scam apply for incorporation under the pretext of being a "bishop" or "overseer" of the phony religious organization or society. The idea promoted is that the arrangement entitles the individual to exemption from federal income taxes as an organization described in Section 501(c)(3) laws.

The scheme has been marketed through seminars with fees of up to $1,000 or more per person. Would-be participants purportedly are told that Corporation Sole laws provide a "legal" way to escape paying federal income taxes, child support and other personal debts by hiding assets in a tax exempt entity.

Tax guidelines for churches and religious institutions can be found in IRS Publication 1828, "Tax Guide for Churches and Religious Organizations".