Appeals court upholds federal business filing requirement; estimated 230,000 farms affected

LINCOLN, Neb. (KLKN) – A federal appeals court on Monday allowed a requirement that businesses register with the federal government to go forward.

The 5th U.S. Circuit Court of Appeals overruled a decision by a lower court to block the Corporate Transparency Act.

Corporations and limited liability companies now have until Jan. 13 to file with the Treasury Department’s Financial Crimes Enforcement Network.

The American Farm Bureau Federation estimated that more than 230,000 farms are required to file.

The organization said less than 11% of all businesses — agriculture and non-ag — that fall under the new requirements have filed.

“It’s clear that many farmers aren’t aware of the filing requirement because of lack of guidance and the government’s poor public outreach,” Farm Bureau President Zippy Duvall said.

The original deadline was Jan. 1, but the Treasury Department extended it Monday since businesses spent the last three weeks thinking the rule was blocked.

The law, which was intended to crack down on money laundering, requires businesses to disclose who owns them.

Businesses that do no file could face a criminal fine of up to $10,000, plus additional civil penalties.