By Andi Anderson
Farmers and agribusiness owners must take action to comply with the Corporate Transparency Act (CTA), as time is running out to file necessary business information with the federal government.
The deadline for businesses created before January 1, 2024, is fast approaching—January 1, 2025. Failure to file can result in steep fines or even jail time.
The CTA, passed in 2020, aims to combat financial crimes by requiring most businesses, including farm businesses, to report their beneficial owners. This law was designed to prevent money laundering through hidden assets in shell companies.
Any business created by filing paperwork with a state office, such as LLCs and corporations, is required to comply. Sole proprietorships are generally exempt, but farmers should consult their legal counsel to ensure they meet the requirements.
Farmers must file basic information, including names, addresses, tax ID numbers, and identification documents like driver’s licenses.
The U.S. Financial Crimes Enforcement Network (FinCEN) handles these filings through its official website, fincen.gov, where resources are available to guide business owners through the process.
Leah Curtis, associate general counsel for Ohio Farm Bureau, advises farmers to be cautious of scams. Fraudulent emails may request a nonexistent Form 4022 or reference fake agencies. Farmers should avoid providing information to unsolicited requests and ensure they only use official government websites.
As the deadline nears, Curtis emphasizes the importance of working with an attorney or legal professional to assist with the filing process. Farmers are busy during harvest season, but completing this requirement is crucial to avoid penalties.
By filing on time, farmers can ensure they comply with the law and avoid unnecessary legal trouble. Resources are available through the Farm Bureau and OSU Extension to help with compliance.
Photo Credit: gettyimages-livingimages
Categories: Ohio, General