Time is running out for thousands of farmers and ranchers who may face steep fines and possible jail time for failing to file their businesses with the federal government. Jan. 1, 2025, is the deadline to file Beneficial Ownership Information (BOI) with the U.S. Department of Treasury’s new Financial Crimes Enforcement Network (FinCEN) created under the Corporate Transparency Act of 2021.
“The use of Limited Liability Companies (LLCs) and other formal organizational structures serve as important tools for numerous farms and ranches to maintain a distinction between personal and business assets. However, small businesses frequently do not have the personnel necessary to monitor and adhere to evolving rules and regulations. It is evident that a significant number of farm and ranch families are unaware of the recent filing obligations,” said Mark McHargue, Nebraska Farm Bureau president.
The Corporate Transparency Act of 2021 required businesses to register any “beneficial owner” of a company in an effort to combat money laundering. Many farms are structured as either a c-corporation, s-corporation, or limited liability company (LLC), which are now required to be registered if they employ fewer than 20 employees or receive under $5 million in cash receipts – which covers most farms.
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 and up to two years in prison.
Nebraska Farm Bureau has developed a comprehensive question-and-answer guide designed to assist farmers and ranchers in understanding the implications of the CTA for their operations. This guide is available online at www.nefb.org.
“It is critical for Nebraska’s farmers and ranchers to be aware of and understand these new requirements is essential for staying compliant. Producers should be reviewing their ownership structure and gathering the necessary information about beneficial owners.” said McHargue.
NEFB is encouraging farmers and ranchers to contact an accountant or attorney if they are unsure whether they are required to file their business’ BOI.
The Nebraska Farm Bureau is a grassroots, state-wide organization dedicated to supporting farm and ranch families and working for the benefit of all Nebraskans through a wide variety of educational, service, and advocacy efforts. More than 55,000 families across Nebraska are Farm Bureau members, working together to achieve rural and urban prosperity as agriculture is a key fuel to Nebraska’s economy. For more information about Nebraska Farm Bureau and agriculture, visit www.nefb.org.