Cattle producers are being warned that Corporate Transparency Act (CTA) filing requirements are back in effect following a court decision that reverses the injunction that previously halted this mandate.
According to the National Cattlemen’s Beef Association (NCBA), the Fifth Circuit Court of Appeals on Monday lifted the nationwide preliminary injunction on the enforcement of the CTA, holding that the government is likely to prevail in a constitutional challenge. This decision places many small businesses in jeopardy that have not yet filed Beneficial Ownership Information with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury.
“The Corporate Transparency Act requires millions of family farmers and ranchers to file complex paperwork and disclose beneficial ownership information with the federal government under penalty of severe fines and jailtime,” said NCBA Executive Director of Government Affairs Kent Bacus. “FinCEN should do the right thing and provide a realistic delay to the Corporate Transparency Act until Congress has an opportunity to provide a permanent fix that protects family farmers and ranchers.”
In light of the Fifth Circuit’s decision, FinCEN announced it will delay enforcement of the CTA until January 13, 2025. NCBA notes the delay does not allow enough time for millions of small businesses to comply with the law, and it is deeply concerning that FinCEN will proceed with enforcing this law when it has failed to give adequate notice and instructions to law abiding family business owners.
NCBA will continue to fight for a permanent solution that protects cattle farmers and ranchers from this overreaching mandate. In the meantime, producers are advised to consult their attorney and/or tax professional regarding this new development.