Many farms and ranches will be required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury.
In 2021, Congress passed the Corporate Transparency Act. It requires businesses to report the identity of their owners with the goal of reducing financial crime.
WHO MUST FILE
Any producer whose farm or ranch employs 20 employees or less, is a corporation, limited liability company (LLC), partnership or was formed as another type of entity by filing a document with the secretary of state or similar state office is required to file a Beneficial Ownership Report with FinCEN.
WHEN TO FILE
Companies that were registered before Jan. 1, 2024, have until Jan. 1, 2025, to file their reports. Any companies created between Jan. 1, 2024, and Jan. 1, 2025, have 90 days from their creation or registration with the state to submit this report to FinCEN.
Additionally, any updates or corrections to beneficial ownership information must be submitted within 30 days.
WHERE TO FILE
To comply with the Corporate Transparency Act, any farm required to file must do so online. The form will require a name, date of birth, residential or business address, and a unique identifying number like a driver’s license or passport number.
Producers are encouraged to consult their attorneys to determine if the act applies to them. Penalties for non-compliance can include a $500-per-late-day fine (up to $10,000) or even prison sentences for refusing to comply with the law.
More information is available at the online filing website or by reviewing FinCEN’s Small Entity Compliance Guide. This information is not professional advice, and it is recommended that farmers ask tax professionals or attorneys whether the Corporate Transparency Act applies to them.
Source: Highlands County Citrus Growers Association
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