This holiday season, instead of a gift, community associations have received a lump of coal: the reinstatement of the Corporate Transparency Act (CTA) filing requirements and the requirement to file Beneficial Ownership Information (BOI) with FinCEN.
A recent decision by the U.S. Court of Appeals has lifted the injunction that previously paused this mandate. Unfortunately, this is not a win for community associations, as the reporting requirements are now back in effect.
The case, National Small Business United v. Janet Yellen, was reviewed by the U.S. Court of Appeals, which determined that the CTA’s reporting requirements are necessary to combat money laundering and financial crime. The court emphasized that the CTA serves an important public interest by improving transparency and curbing the misuse of corporate entities for illicit purposes. As a result, the prior injunction blocking enforcement of the Act was overturned.
The deadline to comply has been extended to January 13, 2025, giving associations additional time to meet their obligations. However, our recommendation remains the same: community associations should continue preparing and filing as soon as possible to ensure compliance and avoid potential penalties.
Next Steps for Our Clients who engaged us to file:
- For Clients Who Paused Filing:If you previously instructed our firm to pause the filing process after the lower court issued its injunction, please contact us to confirm that we should lift the pause and proceed with your filing. Once we receive your confirmation, we will promptly resume the process.
- For Clients Who Chose to Proceed:For those who directed us to continue with your filing, there is no need to advise us further—we will proceed as planned to ensure your compliance with the requirements.
If you have any questions or need further guidance, please don’t hesitate to reach out to our CTA compliance team at [email protected]. We are here to support you through this process and ensure your community association remains compliant with the CTA requirements.
