By Jamie Martin
The National Cattlemen’s Beef Association (NCBA) is emphasizing the importance of the Corporate Transparency Act for cattle producers as the end of 2024 approaches.
This legislation mandates that certain farms and ranches structured as corporations or LLCs report their beneficial ownership to the Financial Crimes Enforcement Network (FinCEN). This initiative aims to curb financial crimes by ensuring transparency in business ownership.
Jeff Magee, NCBA Tax and Credit Committee Vice Chair, stresses the urgency of consulting with tax attorneys to avoid penalties, which can reach $500 per day, and possible incarceration. Resources to assist with compliance, such as FAQs and a compliance guide, are available at FinCEN's website.
For entities established before 2024, the filing deadline is December 31, 2024. Those established during 2024 have 90 days post-registration to comply. Starting 2025, the window shortens to 30 days. Each report must include full names, birthdates, and addresses of the owners.
This legislation particularly impacts smaller agricultural businesses with fewer than 20 employees. The NCBA is actively providing outreach and resources to ensure its members meet the necessary legal requirements and avoid the stiff penalties associated with non-compliance.
Photo Credit: national-cattleman-s-beef-association
Categories: National