Day: February 24, 2025

BOI is Back!

Written by Jeffrey K. Lewis, Esq., Program Coordinator, Income Tax Schools

Yes, you read that right—the Beneficial Ownership Information (“BOI”) reporting requirements under the Corporate Transparency Act (“CTA”) are once again in effect. On February 17, 2025, a federal judge lifted the stay he had issued on January 7 in Smith v. U.S. Department of Treasury, which had temporarily halted the Government from enforcing BOI reporting requirements nationwide. This recent ruling eliminates all nationwide barriers that had been hindering the enforcement of the CTA. As a result, millions of businesses must now comply with BOI reporting requirements or face the risk of civil and/or criminal penalties.

Updated Deadlines
On February 18, 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a notice outlining the following key updates:

  1. Most reporting companies, unless subject to a later deadline (such as disaster relief extensions), now have until March 21, 2025, to submit their initial, updated, or corrected BOI report to FinCEN.
  2. If FinCEN determines that additional time is needed for compliance, it will issue another notice before the March 21, 2025, deadline with any further changes.
  3. The named plaintiffs in National Small Business United v. Yellen are still not required to report their BOI to FinCEN at this time.

Continue reading BOI is Back! →

Heat Lamp Use for Newborn Livestock

It’s that time of year when we hear in the news of barn fires as a result of heat lamps being used for lambing, kidding, and even calving. As temperatures get colder, livestock producers raising young animals need to make conditions favorable for rearing newborns in adverse conditions. Adding heat lamps to livestock pens should be done with caution. With any electrical appliance or heating source, precautions need to be taken.

If you must use a heat lamp, best management practices recommend the following tips:

1. Purchase a high-quality heat lamp. Use lamps that are enclosed with a heat lamp guard (wire or otherwise). If using a lamp outdoors, make sure the lamp is labeled for outdoor use.

2. Use high- quality bulbs. Low quality bulbs such as thin glass can shatter.

3. Regularly inspect to make sure that the bulb is tightly secured, and wiring is not exposed, is sealed, and is secured.

4. Avoid using bulbs over 250W.

5. Many lamps are used over numerous years. Remove any dust, cobwebs, or dead insects before use.

6. Secure the lamp to a panel using a non-flammable chain or a heat lamp clamp. Do not use twine or rope.

7. Make sure the lamp is secured high enough that adult livestock cannot tamper or abuse the fixture (with head butts, kicks, or bashing). Continue reading Heat Lamp Use for Newborn Livestock →

How Many Farms Pay Estate Taxes?

Written by Robert Moore

Estate taxes have been a hot topic lately, especially with the looming expiration of the Tax Cuts and Jobs Act (TCJA). The TCJA significantly increased the federal estate tax exemption, which stands at $13.99 million per person for 2025. However, if Congress does not intervene, that exemption will drop to approximately $7.2 million in 2026, reverting to pre-TCJA levels.

Estate Taxes and Farms: The Current Reality

Despite the frequent debate about estate taxes, very few farm estates actually owe them. According to the USDA, only about 0.3% of farm estates are subject to federal estate tax under the current exemption. In fact, in 2022, the USDA estimates only 87 farm estates nationwide had to pay any federal estate tax at all.

If the exemption decreases in 2026, more farms will be affected, but the overall percentage will still be relatively small. Here’s what the numbers look like:

  • The percentage of all farms owing estate taxes would rise from 0.3% to 1.0%.
  • Large farms (those with $1 million to $5 million in gross income) would see the biggest jump, with taxable estates increasing from 2.8% to 7.3%.

See the chart below for a full breakdown.

Why Estate Taxes Matter for Farm Families

Even though only a small percentage of farms will be affected, for those that are, estate taxes can pose a significant challenge to passing the farm on to the next generation. Many farms are asset-rich but cash-poor, meaning they have substantial land and equipment value but limited liquid assets. This can create difficulties in paying estate taxes without selling off land or assets critical to farm operations. Continue reading How Many Farms Pay Estate Taxes? →