Beneficial Ownership Information (BOI) Reporting Requirement for Farmers
PLEASE NOTE: Following a series of recent court actions, as of December 26, 2024, small businesses (including many types of farm entities) are not currently required to file a beneficial ownership information (BOI) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), as part of the Corporate Transparency Act of 2021.
(The law seeks to require business entities to register any “beneficial owner” of a company in an effort to combat money laundering and corrupt financial transactions. Businesses that don’t comply could face steep fines and other penalties.)
While business entities (including farms) are not currently required to file a BOI report, enforcement of the Corporate Transparency Act could resume as a result of subsequent court action. Farmers are encouraged to continue to monitor developments and seek guidance from trusted advisers.
Why Are Businesses Required to File BOI?
The Corporate Transparency Act of 2021 requires businesses to register any “beneficial owner” of a company in an effort to combat money laundering and corrupt financial transactions.
Who Needs to File?
Limited partnerships, corporations and LLCs, whether single member or multiple member, are among the entities that must report ownership, which encompasses many farm entities.
General partnerships and sole proprietorships generally don’t have to file beneficial ownership reports.
Farmers are encouraged to contact an accountant or attorney if they are unsure whether they are required to file their business’s ownership information with FinCEN.
In Iowa, just 15.2% of companies subject to the reporting requirements had successfully filed with FinCEN as of October 2024, according to American Farm Bureau analysis.
What is the Filing Deadline?
Due to court action on December 26, 2024, there is currently no filing deadline.
Previously, January 1, 2025 was the filing deadline for businesses formed before 2024.
Entities first formed in 2024 or thereafter previously had 90 days from creation to file the necessary report. Businesses have 30 days to report changes in ownership from previously filed reports.
What are the Penalties for Not Filing?
Businesses that fail to file or don’t update records when needed could face criminal fines up to $10,000 and additional civil penalties of up to $591 per day. Failure to file could also lead to felony charges and up to two years in prison.
How Do Farms/Businesses File?
FinCEN has created a YouTube video that steps businesses through the process of creating a BOI report.
Visit fincen.gov/boi to file your BOI with FinCEN.
Learn More
Learn more about FinCEN’s BOI requirement, using the resources below:
- Video: How to File a BOI Report (U.S Treasury)
- BOI Small Business Entity Compliance Guide (U.S. Treasury)
- BOI FAQ (U.S. Treasury)
- Iowa Farm Bureau Spokesman article on BOI requirement
- Iowa State University Center for Agricultural Law and Taxation article on BOI requirement.
- Iowa Farm Bureau farm income tax webinar (including insights into BOI requirement from ISU Center for Agricultural Law and Taxation director Kristine Tidgren)
- Corporate Transparency Act Market Intel (American Farm Bureau)