WASHINGTON (December 4, 2024) – Today, the National Cattlemen’s Beef Association (NCBA) hailed the issuance of a nationwide preliminary injunction blocking the Corporate Transparency Act from being enforced on January 1, 2025. This ruling from the U.S. District Court for the Eastern District of Texas protects millions of family farmers and ranchers from onerous reporting requirements imposed by the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury.
“The Corporate Transparency Act requires millions of family farmers and ranchers to file complex paperwork and disclose beneficial ownership information with the federal government under penalty of severe fines and jailtime,” said NCBA Executive Director of Government Affairs Kent Bacus. “Across the country, cattle producers are relieved that this mandate is on hold while the law is being considered by the courts. NCBA will continue working with Congress to provide a permanent fix to the Corporate Transparency Act that protects family farmers and ranchers.”
This preliminary injunction prevents the Corporate Transparency Act from taking effect until the outcome of the case Texas Top Cop Shop, Inc. v. Garland is fully decided by the courts. This case was brought by a Texas small business that challenged the legality of the Corporate Transparency Act. For the time being, the injunction prevents FinCEN from enforcing the act and delays the deadline to file beneficial ownership reports. This is not the first constitutional challenge of the Corporate Transparency Act, and the difference in court decisions could lead to further consideration by higher courts.
While the preliminary injunction is a relief for cattle producers, we must continue fighting for a long-term solution. NCBA will continue working with policymakers to protect cattle producers from onerous reporting requirements like the Corporate Transparency Act.
Every producers’ situation is different, and this information should not be construed as professional advice. Always consult your attorney and/or tax professional to determine how the Corporate Transparency Act impacts you.
Comments