The U.S. Treasury Department’s Financial Crimes Enforcement Network issued a final rule permanently exempting U.S. companies and persons, including community association board members, from beneficial ownership reporting requirements under the Corporate Transparency Act.
CAI filed an amicus brief this month supporting high court review of a case that seeks to repeal the Corporate Transparency Act. This is the latest move CAI has taken to protect community associations from a law it believes imposes burdensome and unnecessary requirements. Here’s what you need to know now.
In a unanimous decision, the U.S. Court of Appeals for the 11th Circuit reversed and remanded a lower court’s stay of the Corporate Transparency Act. This decision lifts the order blocking enforcement of the act issued by a district court in March 2024 that paused all reporting requirements. Despite the court ruling, community associations can continue to ignore the act’s requirements to report beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network.
Reporting requirements under the Corporate Transparency Act have been reinstated for community associations, which now have until March 21 to file an initial, updated, or correct beneficial ownership information report with the Financial Crimes Enforcement Network.
Community associations need to closely monitor legal developments regarding the Corporate Transparency Act. As four U.S. district courts hear appeals related to the constitutionality and application of the act, any updates could further change requirements for community associations.
