As you know, earlier this week we advised you that the CTA reporting requirements were reinstated following a decision by the U.S. Court of Appeals for the Fifth Circuit. We urged community associations to proceed with filing to meet the compliance deadline of January 13, 2025.
Now, in a stunning reversal, the same Fifth Circuit Court has vacated its own stay and reinstated the nationwide injunction that halts the enforcement of the CTA. This decision comes just days after the court lifted the injunction, creating an almost absurd back-and-forth legal battle. The court justified its latest decision by emphasizing that the constitutional concerns raised in the case warrant further consideration before enforcement of the CTA can proceed.
What This Means:
The compliance deadline of January 13, 2025, now appears to no longer be in effect, but we are awaiting official updates from FinCEN for clarity.
Next Steps for Our Clients:
- For Clients Who Paused Filing: No further action is needed at this time. Your filings remain on hold.
- For Clients Who Paused, Then Asked to Resume: Please let us know if you would like to place your filing back on pause following this latest development.
- For Clients Who Asked Us to Proceed: We will continue to proceed with your filing as previously instructed. Most of our clients have chosen this course to complete the filing and move past the constant changes in the regulatory landscape, allowing the board to focus on other priorities.
We recognize how frustrating and unpredictable this situation has become. Please rest assured that we are monitoring developments closely and will continue to provide you with accurate updates as they arise. If you have questions or would like to modify your filing instructions, please contact our CTA compliance team at CTA@schneiderbuchel.com.
Thank you for your patience and understanding as we navigate this ongoing legal uncertainty together.