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Ruling reinstates Beneficial Ownership Information reporting requirements
A ruling by the U.S. Court of Appeals for the Fifth Circuit could put some farmers at legal risk. On Monday, the Court lifted an injunction that reinstates a January 1, 2025, reporting deadline for farmers who operate corporations and limited liability companies. Farmers will again be required to submit Beneficial Ownership Information with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Earlier this month a federal district court ruled to halt the requirement.
Analysis from American Farm Bureau economists shows more than 230,000 farms are required to file, but as of October, less than 11 percent of all eligible businesses nationwide had filed.
AFBF president Zippy Duvall says the organization is disappointed with the decision to reinstate the filing deadline. Duvall says there has been a lack of guidance from the government.
Businesses that fail to file or do not update records when needed could face criminal fines of up to $10,000 and additional civil penalties of up to $591 per day. Failure to file could also lead to felony charges.
Farmers are encouraged to contact an accountant or attorney if they are unsure whether they are required to file their business’ BOI with FinCEN. FinCEN announced it would delay enforcement of the Corporate Transparency Act until January 13, 2025—just three weeks from now.
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