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.
Community Associations Institute filed an amicus brief earlier this week in the United States Court of Appeals for the 11th Circuit challenging the constitutionality of the Corporate Transparency Act. Enacted by Congress in 2021, the act requires businesses, including community associations, to register with the Treasury Department’s Financial Crimes Enforcement Network. CAI supports the act’s intent to bolster transparency and counter money laundering and terrorist financing efforts but believes it should not apply to community associations.
Community associations must take seriously new mandatory filing requirements under the Corporate Transparency Act, legal experts advise. Existing community associations must comply with the law’s reporting requirements by Jan. 1, 2025. New community associations have 30 days after incorporation to file. Information also must be updated following changes in governance such as the election of directors.
