By Jamie Martin
The National Cattlemen’s Beef Association (NCBA) has alerted cattle producers about the reinstatement of Corporate Transparency Act (CTA) reporting requirements. This follows a court ruling that reversed a previous injunction halting the mandate.
The CTA requires small businesses, including family farms and ranches, to file detailed ownership disclosures with the federal government.
“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 Kent Bacus, NCBA Executive Director of Government Affairs.
“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.”
On December 24, the Fifth Circuit Court of Appeals lifted the nationwide injunction on CTA enforcement, ruling that the government is likely to succeed in defending the law’s constitutionality. In response, the Financial Crimes Enforcement Network (FinCEN) announced a short delay, with enforcement now scheduled to begin on January 13, 2025.
NCBA expressed concerns about the timeline, noting that three weeks is insufficient for millions of small businesses to comply. The organization criticized FinCEN for failing to provide adequate notice and instructions, leaving many producers unprepared for these stringent regulations.
The NCBA continues to advocate for a permanent legislative solution to shield cattle producers from the burdensome reporting requirements. In the meantime, cattle producers are urged to consult legal or tax professionals to ensure compliance with the law.
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Categories: National