The National Cattlemen’s Beef Association reminds cattle producers to consult their tax attorneys regarding the Corporate Transparency Act as key deadlines approach at the end of this year. The Act was passed by Congress in 2021 and requires companies to report beneficial ownership information to the Financial Crimes Enforcement Network, a division of the U.S. Treasury. The legislation’s goal is to reduce financial crimes, but the new mandate will impact farmers and ranchers whose operations have fewer than 20 employees and are structured as corporations like Limited Liability Companies.
“Farmers and ranchers need to speak with their tax attorneys to make sure they are not in violation of this new law, and to submit necessary information to FinCEN before the December 31 deadline,” said NCBA Tax and Credit Committee Vice Chair Jeff Magee, a Mississippi cattle producer and former Internal Revenue Service agent. “I strongly encourage you to review the resources on www.fincen.gov/boi to determine if the Corporate Transparency Act applies to your business. Deadlines are coming up soon and failing to comply with the law can carry a fine of $500 per day and possible jail time. For more information, contact FinCEN and consult your attorney or tax professional.”