Farmers Should Note Reinstated Beneficial Ownership Filing Requirement

Smith: Farmers and ranchers who operate corporations and limited liability companies are once again required to file Beneficial Ownership Information with the Treasury Department's Financial Crimes Enforcement Network. Dustin Sherer, director of government affairs for the American Farm Bureau Federation, says an appeals court decision overturned a previous injunction that had postponed the filing requirement.

Sherer: So, anybody that had that deadline of the end of the year is now once again required to file, and shortly thereafter, the federal government, FinCEN, issued a statement saying, anybody who had that deadline, we will extend the filing deadline to January 13.

Smith: Sherer says the measure was originally intended to fight fraud, but the rule is incredibly broad.

Sherer: It's information that the federal government believes will help them identify shell companies that are being used to launder money, and because they couldn't come up with a good definition of a shell company, they put out a definition that essentially qualifies every small business in America as a potential shell company.

Smith: Farm Bureau estimates over 230,000 farms are required to file, so contact your accountant or attorney to see if your farm or ranch meets the filing requirements.

Sherer: You should check with a lawyer or your CPA, but if you had to file any type of document with the state government in order to create your business entity, then you are very likely required to file your beneficial ownership information, and you should file to be safe.

Smith: Failure to file could lead to felony charges and up to two years in prison, as well as a hefty fine. For more information, go to fb.org. Chad Smith, Washington.