American Farm Bureau Federation
A last-minute court of appeals ruling could put tens of thousands of farmers in legal crosshairs for failing to register their businesses with the federal government. Farmers who operate corporations and limited liability companies are once again required to file Beneficial Ownership Information with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) or face stiff fines or jail time.
A federal district court ruled earlier in December to halt the requirement, but today the United States Court of Appeals for the Fifth Circuit lifted the injunction, meaning a Jan. 1, 2025 deadline is back in effect. Analysis from AFBF economists shows more than 230,000 farms are required to file, but as of October, less than 11% of all eligible businesses nationwide had done so.
“Farm Bureau is very disappointed in the court of appeals decision to reinstate the Jan. 1 filing deadline,” said AFBF President Zippy Duvall. “It’s clear than many farmers aren’t aware of the filing requirement because of lack of guidance and the government’s poor public outreach.”
“Farmers were given a reprieve from the filing deadline, but now, just two days before the holidays, when many families take a much-needed break from work responsibilities, the courts have reinstated the requirement. Unfortunately, thousands of farmers may unknowingly miss the deadline, putting their businesses at risk. We urge the government to grant an extension so more family businesses can comply with the rule.”
Businesses that fail to file, or do not update records when needed, could face criminal fines 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.
Farmers are encouraged to contact an accountant or attorney if they are unsure whether they are required to file their business’s BOI with FinCEN.
Read a Market Intel on the Beneficial Ownership Information requirement here.