There is no if. Everybody is committing a crime all the time. There are laws that prohibit doing things that other laws mandate. There are more pages of laws on the books than anyone could read in a lifetime, so there is no feasible way to know that a given action isn't illegal.
Businesses are engaged in risk management. They try to avoid knowingly breaking the law. Making that process consume more resources, increases compliance costs.
It will also needlessly lead to the disclosure of personal information from people doing nothing wrong, simply because using tax disregarded LLCs has become a widespread practice to patch around just about everything else constantly demanding your personal info and leaking it everywhere.
By demanding the submission of this information, having harsh penalties for avoiding it, and providing apparently zero protection or consequences for disclosing it... that outcome is essentially guaranteed.
Is it? Can you give some examples of how this is used?
I have never seen any reporting on this practice. What makes you think it is widespread?
My point is that if this is all they have then they don’t have a case, so legitimate businesses don’t need to stress about about clerical errors landing them in jail.