Court Reinstates Ownership Reporting for Farmers

The U.S. Court of Appeals for the Fifth Circuit has reinstated a January 1, 2025 deadline for farmers and small businesses to submit Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN), reversing an earlier district court ruling that had blocked the requirement. Over 230,000 farms are expected to be affected, with less than 11% of eligible businesses having filed previously. The ruling has sparked concern among agricultural organizations like the American Farm Bureau Federation, whose president Zippy Duvall expressed disappointment over the lack of government guidance, potentially putting farmers at risk of severe penalties for non-compliance. The Corporate Transparency Act, which mandates these disclosures, is defended by the government as constitutional, aiming to improve anti-money laundering measures. Business owners face substantial fines for failing to comply, with a call from industry leaders for an extension to allow better preparation. The urgency of compliance is exacerbated by the holiday season, leaving many business owners scrambling to meet the new requirements.