LINCOLN, Nebraska — On Monday, a federal appeals court upheld the need that businesses register with the federal government.
The 5th US Circuit Court of Appeals overturned a lower court’s judgment to block the Corporate Transparency Act.
Corporations and limited liability firms will now have until January 13 to file with the Treasury Department’s Financial Crimes Enforcement Network.
The American Farm Bureau Federation estimates that over 230,000 farmers are required to file.
According to the group, less than 11% of all enterprises — both agricultural and non-agricultural — that are subject to the new rules have filed.
“It’s clear that many farmers are unaware of the filing requirement due to a lack of guidance and the government’s ineffective public outreach,” Farm Bureau President Zippy Duvall stated.
The original deadline was January 1, but the Treasury Department extended it Monday after businesses spent the last three weeks believing the regulation had been blocked.
The regulation, which was designed to combat money laundering, requires corporations to declare who owns them.
Businesses who fail to file may risk a $10,000 criminal fine, as well as additional civil penalties.