The National Cattlemen’s Beef Association (NCBA) is reminding cattle producers to consult with their tax attorneys regarding the Corporate Transparency Act, with key deadlines approaching at the end of 2024. NCBA’s grassroots members recently passed policy at the 2024 Summer Business Meeting directing the association to take action on the Corporate Transparency Act, including outreach and education to cattle producers.
The Corporate Transparency Act was passed by Congress in 2021 and requires companies to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury. The goal of the legislation is to reduce financial crime, but the new mandate will impact farmers and ranchers whose operations have fewer than 20 employees and are structured as corporations such as limited liability companies (LLC) or companies that are registered with the secretary of state.
“Farmers and ranchers need to speak with their tax attorneys to make sure they are not in violation of this new law, and to submit necessary information to FinCEN before the December 31 deadline,” said NCBA Tax and Credit Committee Vice Chair Jeff Magee, a Mississippi cattle producer and former Internal Revenue Service agent. “I strongly encourage you to review the resources on www.fincen.gov/boi to determine if the Corporate Transparency Act applies to your business. Deadlines are coming up soon and failing to comply with the law can carry a fine of $500 per day and possible jail time. For more information, contact FinCEN and consult your attorney or tax professional.”
Farms and ranches that are structured as corporations, LLCs, or other entities that file with the secretary of state may be subject to the Corporate Transparency Act and required to file a “beneficial ownership” report with FinCEN, identifying the individuals who own or manage the operation. For companies registered and operating before January 1, 2024, the deadline to file this report is the end of 2024. Companies registered or created in 2024 have 90 days from the date of registration or creation to file their beneficial ownership report. In 2025, the reporting period will be reduced to 30 days.
These reports require basic identifying information like legal name, date of birth, and home or business address. Resources, including a frequently asked questions document and a Small Entity Compliance Guide, and the filing form are available online at www.fincen.gov/boi. Producers with additional questions should contact FinCEN by calling 1-800-767-2825 toll free or 703-905-3591.
Every producers’ situation is different, and this information should not be construed as professional advice. Always consult your attorney and/or tax professional to determine how the Corporate Transparency Act impacts you.
