The National Cattlemen’s Beef Association (NCBA) is alerting cattle producers that the Corporate Transparency Act (CTA) filing requirements have been reinstated. This follows a recent decision by the Fifth Circuit Court of Appeals that lifts a previous injunction preventing enforcement of the law.
According to the NCBA, the CTA forces millions of family farmers and ranchers to file detailed paperwork and disclose their ownership information to the federal government. Those who do not comply could face large fines or even jail time. NCBA Executive Director of Government Affairs Kent Bacus stated, “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.”
The court ruling allows the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to enforce the CTA beginning January 13, 2025. However, the NCBA is concerned that this date is too soon for many small businesses that are only now learning they must meet these requirements. They argue that three weeks’ notice does not offer sufficient time for millions of small operations to understand and follow the law.
NCBA officials say they will continue working to secure a permanent solution that protects cattle farmers and ranchers. In the meantime, they recommend producers consult with an attorney or tax professional to understand how this development may affect their operations. Producers who have not yet taken steps to comply with the CTA should take this matter seriously to avoid potential penalties.
The CTA was passed by Congress in 2021 to help combat illegal financial activity. It requires owners or part-owners of an estimated 32.6 million small businesses—including about 230,000 farms—to register personal information with FinCEN. According to the American Farm Bureau, only 11 percent of those farms that are likely required to file have done so as of October. With the new legal deadline restored, tens of thousands of farm owners must now confirm whether they need to file.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour. She was recently named the 2024 Farm Broadcaster of the Year by the National Association of Farm Broadcasting and serves as a Council Member on the World Agriculture Forum. Sabrina is a native of California’s agriculture-rich Central Valley and now divides her time between California and North Dakota.