HELENA, Mont. (August 23, 2024) – The Montana Stockgrowers Association (MSGA) is reminding cattle producers to consult with their tax attorneys regarding the Corporate Transparency Act, with key deadlines approaching at the end of 2024.
The Corporate Transparency Act was passed by Congress in 2021 and requires companies to report “beneficial ownership” information to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury. The goal of the legislation is to reduce financial crime, by identifying the individuals who own or manage the operation but the new mandate will impact farmers and ranchers whose operations have less than 20 employees and are structured as corporations such as limited liability companies (LLC) or companies that are registered with the secretary of state.
“If you have not done so already, now is the time to speak to your tax attorneys to ensure you are in compliance with this new law, and to submit necessary information to FinCEN before the December 31st deadline,” said MSGA Executive Vice President, Raylee Honeycutt.
MSGA encourages producers to review the resources on https://www.fincen.gov/boi to determine if the Corporate Transparency Act applies to their operation. Failure to comply with the law can carry a fine of $500 per day and possible jail time.
Farms and ranches that are structured as corporations, LLCs, or other entities that file with the secretary of state may be subject to the Corporate Transparency Act and required to file a “beneficial ownership” report with FinCEN, identifying the individuals who own or manage the operation. For companies registered and operating before January 1, 2024, the deadline to file this report is the end of 2024. Companies registered or created in 2024 have 90 days from the date of registration or creation to file their beneficial ownership report. In 2025, the reporting period will be reduced to 30 days.
The Montana Stockgrowers Association is a grassroots membership organization and is the trusted voice of cattle ranchers. With 140 years of history, MSGA advocates and ensures cattle ranching remains relevant, safe and a sustainable way of life for generations to come.
MSGA MEDIA CONTACT:
Keni Reese
Director of Marketing & Communications
406-442-3420
To view more MSGA news, visit https://mtbeef.org/news/
