It’s back! 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 some 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 yesterday the United States Court of Appeals for the Fifth Circuit lifted the injunction, although the deadline has been extended to February 13, 2025, instead of the end of 2024. Analysis from American Farm Bureau 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.
Moving the extension deadline from December 31, 2024, until February 13, 2025, gives LLC owners a little more time to get their paperwork filed.
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, ranchers and many other LLC owners are strongly 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.
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