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Agriculture

Federal Judge Stops Enforcement of Corporate Transparency Act on Farms

2024-12-09

By January 1, a significant change was set to occur for farm owners. Those with incorporated farms or those formed as limited liability companies (LLCs) were obligated to report their beneficial ownership to the U.S. Department of Treasury. Failure to do so would result in stiff fines. However, as of last Tuesday, they have been temporarily relieved from this obligation.

Unraveling the Controversy Surrounding the Corporate Transparency Act for Farms

Unpopular Law and Its Challenges

The reporting requirement under the Corporate Transparency Act faced significant opposition from farm groups and the National Federation of Independent Businesses. Multiple lawsuits were filed, with one notable case brought by Texas Top Cop Shop, a business selling tactical gear and apparel. Federal District Court Judge Amos Louis Mazzant III ruled that the CTA and its reporting requirements could not be enforced at present, and reporting companies were not obligated to comply with the January 1, 2025, beneficial ownership reporting deadline. This decision was a major victory for the affected parties. 2: The opposition to this law was not unfounded. Farm owners argued that the reporting process would impose unnecessary burdens on them and divert their attention from core agricultural activities. The potential for increased administrative costs and compliance requirements was a major concern.

Relief and Caution

Although the federal judge's preliminary injunction provided temporary relief, business owners should not be overly optimistic. As Kristine Tidgren, director of the Center for Agricultural Law and Taxation at Iowa State University, pointed out, the preliminary injunction could be lifted at any time. The reporting deadline is approaching, and reporting companies that have not yet filed should remain vigilant and await further guidance from FinCEN. 2: It is crucial for these companies to be prepared. Those that have not filed should be ready to make the necessary reports in the event that the injunction is lifted. Additionally, the court order did not specifically address new companies currently subject to the 90-day deadline for reporting. While the broad injunction should apply to them as well, the lack of a specific "need not comply" statement adds an element of uncertainty.

Exemptions and Deadlines

Not all farms were required to report. Sole proprietorships and general partnerships were already exempt from the reporting requirement. The law primarily targeted farms organized as corporations, LLCs, or other entities on file with a secretary of state. 2: For entities formed this year, reporting to FinCEN was already mandatory. For older entities, the deadline was January 1, 2025. The penalties for non-compliance were severe, with fines of up to $10,000 and two years in federal prison.

The Political Response

Senator Tommy Tuberville (R-AL) and Representative Warren Davidson (R-OH) have taken action by introducing a bill to repeal the CTA. This bill has the support of more than 100 trade groups, including the American Farm Bureau Federation and the National Cattlemen’s Beef Association. 2: The political push to repeal the CTA reflects the significant concerns raised by the farming community. The future of the law remains uncertain, and its impact on the agricultural sector will continue to be closely watched.

Do we truly require an additional social media platform tailored specifically for college students? With the impending TikTok ban in the United States, a new contender named Connyct emerges, presenting itself as a viable alternative.

Connyct - The Safe Haven for College Students in a Social Media Landscape

Features and Functionality

Connyct closely mirrors the popular short-form video app, offering a comprehensive suite of features. Its personalized content feed ensures that students are presented with relevant and engaging material. Private chatting allows for secure communication among peers, while the video creation and editing tools are extensive. Users can add music, filters, stickers, and more to enhance their videos, making the sharing experience truly immersive. The event discovery section and community channels play a crucial role in helping students stay connected and bond over common interests. Whether it's organizing nearby college parties or participating in small hangouts and club activities, Connyct provides a dedicated space for such interactions.Another notable aspect is the gated access, which requires users to register with a student.edu email. This creates a private network within each institution, enabling students to share content freely among their peers without the worry of unwanted attention from "creeps" or hovering parents. As co-founder and CEO Matthew Berman mentioned in a conversation with TechCrunch, "Being a college kid, TikTok and Instagram can be a scary experience. With Connyct, students can have a more controlled and safe environment."

Event Enhancement and Music Partnership

The event discovery page is a unique feature of Connyct. Users can organize and participate in various college events, and the app even includes a dedicated video tab where students can post content highlighting these events. Additionally, the platform is developing a feature that allows users to enhance event pages by adding songs and dedicated playlists. In September, Connyct secured a partnership with Warner Music Group, ensuring that users have access to music from top artists for their content. This adds an extra dimension to the event experience and makes Connyct a one-stop destination for college students.

Ambassador Program and Earning Potential

To promote the platform and enable college students to earn money from their content, Connyct has launched an Ambassador program. This program allows students to monetize their content and provides bonuses for sign-ups using a unique promo code. Participants can receive rewards such as free merchandise, event perks, gift cards, cash, and exclusive access to Connyct events. While the specific earnings potential varies depending on the different roles ambassadors take on, it is on par with many other companies in the industry. As Berman explained, "Some ambassadors will focus on on-campus interviews, while others will be more involved in social posting or event management. Each role offers different opportunities for earning."

Industry Experience and Team Collaboration

Connyct has a potential advantage over smaller competitors with its founding team of industry veterans and notable advisors. For example, CEO Matthew Berman previously founded the Chunnel.TV network, which reached half a million monthly users with the support of Martin Sorrell and WPP. The chief music officer, Bill Campbell, has advised both Spotify and TikTok during its transition and expansion. The chief marketing officer, Simmy Kustanowitz, is a former executive producer of "Impractical Jokers." Additionally, the team collaborated with around 50 college students from various institutions, including Louisiana State University, the University of California, and more. This diverse team brings a wealth of knowledge and experience to the table, making Connyct a force to be reckoned with in the college social media space.Currently, Connyct is only available on the App Store, but Android and desktop versions are in the works. As the app continues to grow and evolve, it holds the promise of becoming a go-to platform for college students seeking a safe and engaging social media experience.