Fake Form 3897 Demands $119 for Beneficial Ownership Reporting. Don’t Pay It.

A client recently received a letter that looked very much like an IRS form. It included a form number, a revision date, boxes to complete, references to federal law, and warnings about penalties for noncompliance. It even included a deadline.

There was just one problem: It wasn’t an IRS form.

The document, labeled “Form 3897,” claimed the recipient was required to provide beneficial ownership information under the Corporate Transparency Act (CTA). It also demanded a $119 filing fee, payable by check or money order to a company called “Annual Records Service.”

It’s a scam. It’s particularly troubling because it exploits confusion around a real federal reporting requirement.

What The Letter Says

The document currently circulating is titled “Mandatory Beneficial Ownership Reporting” and identifies itself as “Form 3897,” with a January 2024 revision date. The document resembles earlier fraudulent BOI forms, including Forms 4022 and 5102. In a December 2024 alert, FinCEN specifically warned about schemes using the name “Annual Records Service” to solicit payments and beneficial ownership information. Similar mailings have also been reported to the Better Business Bureau.

At the top, the form lists a response deadline of October 21, 2026, and a $119 filing fee. You’re instructed to complete the form, identify the company’s beneficial owners, and return it with payment to Annual Records Service. The form asks for your company’s name and employer identification number (EIN), along with the names and addresses of up to four beneficial owners. It also asks for a contact phone number, email address, and signature.

To make the demand seem more official, the document cites the Corporate Transparency Act (CTA) and warns that companies providing false information or failing to report could face significant penalties, including fines and imprisonment. That language is designed to get your attention and gives the impression that completing the form is a legal obligation. It isn’t.

Importantly, there is no IRS Form 3897 for beneficial ownership reporting, and the IRS isn’t the agency responsible for administering the CTA’s reporting requirements.

The CTA Is Real. This Form Isn’t.

The CTA became law in 2021 as part of the National Defense Authorization Act. It was designed to make it harder for criminals to hide behind anonymous companies by requiring certain businesses to disclose information about the individuals who own or control them.

The reporting requirements took effect on January 1, 2024, though implementation was dogged by litigation, shifting deadlines, and subsequent regulatory changes. Under the original rules, many small businesses were required to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department.

That information could include names, dates of birth, addresses, and identifying information from government-issued identification documents. However, the rules have changed significantly. In March 2025, FinCEN issued an interim final rule exempting companies created in the United States from the reporting requirements. In August 2026, FinCEN finalized those exemptions.

Under current rules, companies organized in the United States do not have to file beneficial ownership reports with FinCEN. Certain companies formed outside the United States and registered to do business here may still have reporting obligations.

For companies that are required to file, reports are submitted directly to FinCEN through its official electronic filing system. There is no fee to file directly with FinCEN.

Red Flags: How To Spot A Fake Beneficial Ownership Form

This particular mailing contains several warning signs.

• An official-looking form number. The document calls itself “Form 3897,” mimicking the numbering and formatting used on government forms. But a form number doesn’t make something official.
• A demand for payment. The letter requests $119 to process the filing. FinCEN does not charge a fee to submit beneficial ownership information directly through its reporting system.
• A private payment recipient. The form instructs recipients to make checks payable to a business calling itself “Annual Records Service.” FinCEN does not charge a fee to file BOI reports directly, and the agency has specifically warned about fraudulent solicitations using this business name.
• A deadline intended to create urgency. The form includes a specific response date. Scams often make you feel you need to act quickly to avoid consequences, which makes you less likely to think clearly.
• References to penalties. The document warns about fines and imprisonment. The CTA includes penalty provisions, but combining penalties with urgency is meant to scare you.
• A request for sensitive information. The form asks for a company’s EIN and personal information about its owners, then instructs recipients to return the completed document by mail. Legitimate BOI reports are submitted electronically through FinCEN’s official filing system—not mailed to a private business.

The key is that the document mixes real information with false claims. That makes it more convincing than a scam that simply invents a law or government agency.

Why This Scam Is Especially Concerning

The real beneficial ownership reporting system was designed to collect sensitive identifying information, including data from government-issued IDs. For companies that remain subject to reporting, that information is still required.

A business owner who knows that the CTA exists, or remembers hearing that companies were required to report their owners, might assume that a document requesting similar information is legitimate. Because the rules have changed several times, business owners may not know whether they’re currently required to file. Scammers count on that confusion.

The potential loss isn’t limited to the $119 filing fee. Sharing company and owner information with an unknown third party can create additional risks, including identity theft and other forms of fraud.

What To Do If You Receive A Letter Like This

• Don’t complete the form. You shouldn’t provide your company’s EIN, ownership information, or other personal details in response to an unsolicited mailing without verifying its legitimacy.
• Don’t send payment. FinCEN does not charge a government fee for filing beneficial ownership information directly with it. You do not need to send a check or money order to a private business to satisfy the federal BOI reporting requirement.
• Verify your reporting obligations independently. If you’re unsure whether your company must report, visit FinCEN’s official beneficial ownership information website. Don’t rely on the instructions, contact information, or payment addresses contained in the letter.
• Report the mailing. You can report suspected fraud to the Federal Trade Commission and the U.S. Postal Inspection Service. Because the document is designed to resemble an IRS form, you can also consult the IRS guidance on reporting suspicious tax-related letters. You can also report suspected IRS or Treasury impersonation to the Treasury Inspector General for Tax Administration (TIGTA).
• Keep a copy. Save the letter and envelope, particularly if you intend to report the mailing. The return address, postmark, and other identifying information may help investigators.

What If You Already Sent The Form?

If you’ve already completed and returned a document like this, don’t ignore it. If you sent payment, contact your bank or financial institution promptly to discuss whether you can stop the transaction and what precautions to take. And if you provided your EIN, personal identifying information, or details about your company’s beneficial owners, you may need to take additional steps to protect yourself and your business.

The steps you should take will depend on what information you disclosed and whether you have evidence of misuse. Contact a qualified tax or legal professional to discuss your next steps. Depending on the circumstances, that may include additional reporting, account monitoring, or identity theft protections.

The Bottom Line

The CTA is real. Beneficial ownership reporting is real. But that doesn’t mean every form or letter invoking the law is legitimate.

It’s a good reminder that scammers don’t always need to invent an elaborate story. Sometimes they simply take a real government requirement, assign it an official-looking form number, add a deadline and a payment demand, and hope someone complies. Don’t let a form number or a threat of penalties make the decision for you.

When in doubt, assume it’s a scam.