Is Form 9710 and US Corporate Classifications a Scam?

Receive a Form 9710 from US Corporate Classifications? Perhaps you are wondering whether it is legitamate or a scam?

Filing your LLC articles of incorporation in New York State (NYS) can help protect your company from legal liabilities. Unfortunately, it also exposes your company name and address to potential scammers. For instance, NY Certificate Service has defrauded numerous individuals over the years. Once you fall victim, there is often little recourse. Thus, identifying scams is a crucial skill for any LLC owner. 

Recently, I encountered this new mail piece from US Corporate Classifications using something called form 9710, which is pictured above. It claims that the recipient’s Employer Identification Number (EIN) has the wrong classification code. The mail includes a questionnaire and requests a payment of $107 to correct the issue.

While it’s true that you must indicate your business classification when you register for an EIN, is this notice legitimate or a scam?

Why the Mail Piece Appears Authentic

The problem with sophisticated scams is their elements of truth or facade of authenticity. In some cases, even online research can either fail to uncover the truth or support the lie. This mail piece has several features that might make it seem legitimate.

Google Search Results:

When searching for “US Corporate Classifications,” instead of a specific company or website, numerous articles about the topic of US corporate classifications appear. This abundance of content can make the request seem genuine. The topic itself is legitimate, but the search results do not directly lead to a company called “US Corporate Classifications.”

Timing of the Mail:

If you recently filed articles of incorporation and registered an EIN, receiving a notice about a mistake in your classification can seem timely. Filing articles with your state is a matter of public record, which scammers can access. They scrape government websites for newly formed business addresses, leading to a surge of scam mail for new business owners.

Similarity to IRS Forms:

Even if you haven’t spent much time filling out government forms, this mail piece resembles official IRS forms. The form number, “Form 9710,” sounds plausible, and the format, with sections divided into parts, mimics genuine IRS documents.

Why US Corporate Classifications is a Scam

Despite its semblance of authenticity, this mail piece from US Corporate Classifications is a scam. Do not send any money or reply to this form. Here are several reasons why this letter is fraudulent:

Lack of IRS Identification:

Although the mail piece might look like an IRS form, it lacks any indication that it is from the IRS. There is no “Form 9710” listed on the IRS website. The process of changing classifications uses a different form and number entirely. Furthermore, legitimate payments should be made to the “Internal Revenue Service” or “US Treasury,” not to an unspecified entity.

It’s missing additional elements of an IRS notice too. Any time you file something with the IRS, you do so with a form. In this case, there is no reference to the form or tax year of the problem. There is no IRS phone number that you could reach out with questions. In fact, there is no IRS logo or mention of the IRS anywhere on the form. 

Irrelevant Questions:

The form asks questions that have no bearing on corporate classification. For instance, IRS Form 8832 – Entity Classification Election. Notice that it asks quetions about the structure of the ownership, what classification your are, and what classification you want to be. That’s because a corporate formation is a question up to the owner, you get to file and tell the IRS what you want to be. However, by filling out this fraudulent form from the mail, how do you correct a supposedly wrong classification, if there is now place to state what your classification should be? The questions that are asked about sales, employees, and loans has nothing to do with corporate classification and probably has everything to do with sending other scam mail to 

It’s a Scam!

I wish I could locate this scammers business filings to show that this mail is from a private entity and not the government, but it’s burried in the Google sea of endless search results. However, I don’t need to go this far. This mailing is clearly a scam and I hope you did not fall for it. If you have responded and mailed a check. You should call your bank before the check is cashed and have the check canceled. You can also submit a complain with the US Consumer Protection Agency at the following link.

What other scams have you run into since filing articles of incorporation with your state? Should I write about other scams? If you want to read about another insidious LLC scam, check out NY Certificate Service.