Farm Progress America, Jan. 6, 2024

Mike Pearson takes a look at the Corporate Transparency Act and how it's becoming confusing for almost anyone involved.

The Corporate Transparency Act passed in 2021 and was designed to stop illegal finance activities.

There have been a few conflicting court decisions then fifth circuit court of appeals ordered the law would take effect and farmers would have until Jan. 13 to fulfill the law.

within days, a separate pane in the fifth circuit court of appeals vacated the decision and made it voluntary.

However, a court battle is set to take off in March over the Corporate Transparency Act which postpones farms from having to report the information the act seeks.

Under the CTA, companies doing business in the U.S. are required to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

American Farm Bureau Federation President Zippy Duvall called the legal back and forth “court ordered whiplash.” Still, he says the Farm Bureau appreciates the court’s recognition that a last-minute reinstatement of the reporting requirements caused an unwelcome scramble for farmers and other small businesses.

“The latest court decision to postpone the filing requirement is the right thing to do, but the legal back and forth created a stressful holiday season for many farm families,” Duvall says. “Lack of guidance and poor public outreach from the government have left many farmers in the dark about whether they’re expected to file.”

Related: 2024 in the rearview mirror

If the law had gone into effect, impacted farmers could have faced felony charges, more than $10,000 in fines and even prison time.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness .