A New Recordkeeping Headache

By: Dan Looker

If your farm is a limited liability company (LLC) or incorporated, you have a new recordkeeping chore due Jan. 1 at the latest. It may be less burdensome than filing taxes. Yet, it’s a big deal. Ignoring it puts you at risk of fines or even jail time.

By that date, millions of small businesses, including farms, have to report their beneficial ownership and tax ID numbers to the U.S. Treasury Department. The IRS has nothing to do with this. These reports must be filed electronically with the department’s Financial Crimes Enforcement Network (FinCEN). The goal is to help catch crooks who use shell companies for money laundering and other financial crimes.