Farmers Need to Act on Corporate Transparency Act Deadline
Over 230,000 farms face a January 1 deadline to submit documents to the Treasury Department under the Corporate Transparency Act.
“The Corporate Transparency Act was passed in 2021 to combat illegal activities going through shell businesses, so money laundering, organized crime funding, things of that nature.”
That’s Samantha Ayoub, an associate economist with Farm Bureau. She says the Act applies to many types of small businesses.
“The Corporate Transparency Act covers all small, registered businesses, so under 20 employees or $5 million in cash receipts, and then, if you file an incorporating document with your state business authority, so LLCs, Limited Partnerships, or corporations.”
It’s not just farmers and ranchers that have to worry about the deadline. Many feed and supply stores, crop marketers like grain elevators, and the greater rural business community are also likely required to file their Beneficial Owner Information.
“If you’re unsure whether you fall under the authority of the Act and all that, check with your accountants and your attorneys and just make sure that you’re in compliance, that you’re filing correctly.”
The penalties for not filing by the deadline are steep, including potential prison time. Ayoub says owners can be anyone with a significant role in an organization.
“It qualifies other beneficial ownership information, which covers more than just legal owners. It also includes anyone with managerial control over day-to-day operations. It could be family members if they have control over the company and are on the registration documents, or it could be non-family members. It covers a wide variety of owners.”
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