The recent whiplash regarding the validity of the Corporate Transparency Act (CTA)—it was enjoined just to particular parties, then enjoined nationwide, then un-enjoined, then enjoined again, while other courts let it stand—reflects the divisions among federal courts that have examined the law. This article explores some of those divisions, and addresses the timing and status […]
Could CTA Be Back On? Allcock & Marcus On Behalf of CAI File Amicus Brief
The Corporate Transparency Act has made its way to the United States Supreme Court as FinCEN has filed an emergency application with SCOTUS to revoke the nationwide injunction against the enforcement of CTA by a Texas District Court and the 5th Circuit Court of Appeals in the case of Texas Top Cop Shop, Inc., et […]
And We Are Off Again: 5th Circuit Vacates Stay Of Injunction In CTA Case
In an order filed December 26, 2024, the Fifth Circuit Court of Appeals has vacated their own stay of the District Court’s preliminary injunction of the enforcement of the January 1, 2025 deadline for reporting compliance under the Corporate Transparency Act in Texas Top Cop Shop v. Garland. Previously, FinCEN had extended the deadline from […]
Alert:Updates to Beneficial Ownership Information Reporting Deadlines – Beneficial Ownership Information Reporting Requirements Now in Effect, with Deadline Extensions (to Jan. 13, 2025)
In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in […]
CTA BREAKING NEWS: January 1, 2025, Filing Deadline Reinstated for all Community Associations
[NOTICE: Filing Date moved back to January 13, 2025] Late on Dec. 23rd, the Fifth Circuit Court of Appeals has granted a stay over the injunction issued by the U.S. District Court for the Eastern District of Texas earlier this month, and issued a court order reinstating the January 1, 2025, beneficial ownership information […]
FinCEN Issues an Alert on the Corporate Transparency Act and the Impact of Ongoing Litigation
We recently sent out an alert on the Corporate Transparency Act being blocked by a Judge from the Texas Federal Court. Specifically, Judge Mazzant of the U.S. District Court for the Eastern District of Texas issued a preliminary injunction against the Corporate Transparency Act (CTA), effectively halting its enforcement nationwide. At that point we were […]
Are Unincorporated Condominium Associations and Condominium Trusts Required to Comply with the January 1, 2025, Corporate Transparency Act?
In Trustees of the Lewis Wharf Condominium Trust v. Yellen et als, U.S. District Court, District of Massachusetts (Boston) 1:24-CV-11679. (“Lewis Wharf”), the plaintiffs sought a declaratory ruling as to whether unincorporated condominium associations and certain condominium trusts formed under M.G.L. c. 183A are exempt from Corporate Transparency Act (CTA) reporting requirements. Read the […]
Stay Prepared for Possible CTA Filing Deadline Changes
Following up on our recent communication regarding the Corporate Transparency Act (CTA), we have new developments regarding the case (Texas Top Cop Shop, Inc., et al. v. Garland, et al.) we reported on that may potentially impact the CTA filing deadline. This weekend, the government filed a motion with the 5th Circuit Court requesting to […]
US Government is Not Wasting Time re CTA Injunction
Last week, District Judge Amos L. Mazzant of the Eastern District of Texas issued a preliminary injunction ordering that the entire Corporate Transparency Act (CTA) is enjoined nationwide and that the US government in enjoined from enforcing the BOI Reporting Rule (the final rule implementing the CTA and providing definitions and guidance for the statute) […]
FinCEN: Companies can voluntarily file BOI reports during injunction
Reporting companies may continue to voluntarily file beneficial ownership information (BOI) reports while the Corporate Transparency Act (CTA), P.L. 116-283, is on hold, the Financial Crimes Enforcement Network (FinCEN) said in an alert this week. The alert followed a district court order last week that placed a preliminary injunction on enforcement of the CTA and […]
Is There a Line Between Free Speech and HOA Regulations? (CA)
In the United States, the right to political expression is a cornerstone of democracy, protected under the First Amendment of the Constitution. Yet, for millions of homeowners living in communities governed by homeowners associations (HOAs), this fundamental right can clash with HOA rules designed to maintain uniformity and order. This tension is particularly pronounced in […]
FinCEN Issues Key Guidance on Corporate Transparency Act Filings
Last week, we shared an update (Corporate Transparency Act Blocked Nationwide by Texas Federal Court) on Judge Mazzant of the U.S. District Court for the Eastern District of Texas issuing a preliminary nationwide injunction against the Corporate Transparency Act (CTA), effectively halting its enforcement nationwide. Naturally, this decision has raised many questions, including, “What does […]
Preliminary Injunction Entered Against Enforcement of the CTA – What Does it Mean?
On December 3, 2024, the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an Order granting a preliminary injunction barring the federal government from enforcing the Corporate Transparency Act (CTA) and its reporting requirements. In doing so, the Court ruled that Reporting Companies do not need to comply with the CTA’s […]
US Government is Appealing Texas Court Injunction of the CTA
What a mess a Texas Federal Court and now FinCEN are making regarding the Corporate Transparency Act (CTA). Days ago, District Judge Amos L. Mazzant of the Eastern District of Texas issued a preliminary injunction ordering that the entire CTA is enjoined nationwide and that the US government in enjoined from enforcing the BOI Reporting […]
Department of Justice Files Notice of Appeal of Recent CTA Ruling
As I’m sure you’ve already heard by now, on Tuesday December 3rd the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in the case of Texas Top Cop Shop, Inc. et al. vs. Garland. That Court determined that the CTA reporting requirements are likely unconstitutional and granted a preliminary […]
Federal Court halts Corporate Transparency Act Enforcement: What does it mean for Condos and Homeowners Associations?
The Corporate Transparency Act (“CTA”) has been a significant concern for community associations in 2024. The CTA requires corporate entities, including many condominium and homeowners associations, to report personal information for individuals exercising substantial control of these entities by the end of 2025. Individuals that qualify as beneficial owners under the Corporate Transparency Act would […]
Corporate Transparency Act Enjoined
A federal judge in Texas, in a lawsuit initiated by a number of small businesses, issued an order on December 3, 2024, granting a preliminary injunction blocking the enforcement of the Corporate Transparency Act (“CTA”). As you likely already know, the CTA required essentially all business entities in the United States, including community associations, to […]
Corporate Transparency Act Blocked Nationwide by Texas Federal Court
Judge Amos L. Mazzant III of the U.S. District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the CTA after a lawsuit filed by Texas Top Cop Shop Inc., other businesses, and the Libertarian Party of Mississippi. The case is Texas Top Cop Shop, Inc. v. Garland, E.D. Tex., No. […]
Condo Boards Likely Safe From Corporate Transparency Law (MA)
New corporate reporting requirements under an anti-money laundering law likely do not apply to condominium associations, a Massachusetts federal judge ruled. In a written decision Friday, U.S. District Judge Leo T. Sorokin dismissed a June complaint by the Trustees of the Lewis Wharf Condominium Trust seeking to block enforcement of the Corporate Transparency Act, noting […]
Understanding the Impact of the Corporate Transparency Act (CTA) on Homeowners Associations (HOAs) (NJ)
The Corporate Transparency Act (CTA) aims to combat financial crimes like money laundering, terrorism financing, and tax evasion by increasing corporate transparency. As of January 1, 2024, the CTA requires certain businesses, including corporations and LLCs, to disclose their beneficial owners—those with significant control or ownership—to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). Non-compliance […]
Corporate Transparency Act Updates – January 1, 2025, Deadline (MI)
Community Associations Institute (CAI) is a national organization advocating for the benefit of homeowners associations, condominiums, and other community associations. On September 10, 2024, CAI filed a lawsuit in the United States District Court for the Eastern District of Virginia, ?Community Associations Institute v United States Department of Treasury, seeking to specifically exempt community associations […]
Co-ops Face Critical Deadline for Compliance with Corporate Transparency Act (NY)
The clock is ticking for board directors as they face a critical Jan. 1, 2025, deadline to comply with the Corporate Transparency Act (CTA). Enacted in 2021, the CTA requires specific U.S. businesses to file beneficial ownership information with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) as part of an effort to […]
Corporate Transparency Act Explained
Q: We recently received an e-mail from our management company regarding the filing requirements of the Corporate Transparency Act. This is the first I’ve ever heard of it. Can you explain what this is? Read the Q&A………………………………..
Community Association Loans and the Corporate Transparency Act (IL)
Condominium, homeowners (HOA), and townhome community associations occasionally rely on loans to fund significant capital improvements and property renovations. These loans can help associations undertake major community projects, Read the article…………………………….
FinCEN Extends CTA Reporting Deadlines for Hurricane-Affected Businesses (FL)
The Financial Crimes Enforcement Network (FinCEN) has announced a six-month extension for certain businesses impacted by recent hurricanes to file their beneficial ownership information (BOI) reports under the Corporate Transparency Act (CTA). Read the article…………………………….
Corporate Transparency Act Update (FL)
A recent update from the United States Department of Treasury, Financial Crimes Enforcement Network (FinCen) provides an extension of time to comply with the requirements of the Corporate Transparency Act for the initial reporting deadlines but there are strict requirements regarding the applicability of the extension as discussed below. Read the article…………………………….
Be Aware of Corporate Transparency Act (CTA) Scams!
Recently one of our clients received a solicitation titled “Mandatory Beneficial Ownership Reporting.” It was noted as form 5102 and states that there is a filing fee of $119.00. The form looks very legitimate and like any other tax form you might receive from the federal government. However, beware of these types of solicitations, as […]
Community Associations Must Now File Beneficial Owner Information Reports
A federal law named the Corporate Transparency Act was recently ruled to be applicable to community associations. This ruling imposes new reporting obligations on those associations and their directors. Read the article…………………………….
HOAs Must File The FINCEN BOI Form And Here Is How
The Corporate Transparency Act (“CTA”) requires that certain entities file annual reports with the Financial Crimes Enforcement Network (“FINCEN”) by December 31. In Community Associations v. Yellen, E.D.Va. Case No. 24-CV0-1597, Doc. 40 (Oct. 24, 2024), the U.S. District Court for the Eastern District of Virginia held that this requirement also applies to a Homeowners […]
Corporate Transparency Act Filing Requirements | Due January 01, 2025
As you may be aware, Homeowner Associations and other businesses will be required to file a Beneficial Ownership Information for with FinCEN under The Corporate Transparency Act. While CAI has filed a lawsuit to exclude Homeowner Associations from the types of businesses and corporations that have to comply with this Act, the lawsuit is not […]
FCC Urged to Drop Bulk Billing Ban Proposal
A coalition of broadband advocates has urged the nation’s telecom regulator to abandon its proposal to regulate bulk billing for internet in apartment complexes, arguing the federal regulators lack the legal authority to enforce such a rule…….The Bulk Broadband Alliance includes organizations like EducationSuperHighway, the Community Associations Institute, the National Multifamily Housing Council, the National […]
Do Property Managers have to Register as BOI Members of Community Associations to Comply with CTA?
Community associations, like many other entities, generally have reporting requirements under the Corporate Transparency Act (CTA). Beneficial owners of the community association, like board members, have to be registered, but how about property managers. The CTA defines a beneficial owner as any individual who, directly or indirectly: Owns or controls at least 25% of the […]
Corporate Transparency Act (CTA) – UPDATED
On Oct. 24, the motion for preliminary injunction filed by CAI National was denied. The injunction was sought to postpone the deadline for community associations to comply with the act’s burdensome requirements until the case could be fully heard by the court. Read the article…………………………….
News Flash – CTA Update – Its On
As you may know, the Community Associations Institute (“CAI”) filed a lawsuit against the US Department of the Treasury requesting associations be exempted from the requirements of the Corporate Transparency Act (“CTA”). While we had been holding out hope that CAI would be able to obtain at least a temporary stay on the enforcement of […]
Sound Association Contracts and CTA Update
As a board member for a condominium or homeowners’ association, understanding the importance of a well written contract for service agreements and capital improvement projects is key. Contracts without specific terms and conditions and a clear scope of work usually mean a recipe for misunderstandings between both the board and the contractor or vendor. It […]
Corporate Transparency Act: A Guide for HOA Board Members
The Corporate Transparency Act is a federal measure aimed at increasing transparency to prevent financial crimes such as money laundering and tax evasion. It requires community associations, including HOAs and Condo associations, to report beneficial ownership (community voting interest) information to the Financial Crimes Enforcement Network (FinCEN). This information includes legal names, addresses, dates of […]
Court Deals Blow to Community Associations’ Attempt to Block Corporate Transparency Act
In a recent case, the Community Associations Institute (CAI) and several community associations sought a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA). The CAI argued that requiring their members to disclose “beneficial owners” to the Treasury Department was unlawful, violated the Administrative Procedure Act, exceeded Congress’s authority, and violated the First […]
Federal Court Rules that Corporate Transparency Act is likely Constitutional: Community Associations must comply by January 1, 2025 to avoid $10,000 in potential civil penalties
The January 1, 2025 deadline for condominium and homeowners associations to comply with the Corporate Transparency Act is fast-approaching. Community associations who fail to comply with the reporting requirements under the Corporate Transparency Act may face civil penalties and possible imprisonment. In a previous article, we have discussed the reporting requirements of the Corporate Transparency […]
‘It doesn’t make sense’: Condo debris not covered by FEMA for pickup (FL)
We’ve heard a lot about the FEMA 50% rule, which states that a damaged home can’t be repaired if the damage exceeds 50% of the home’s value. Now, residents in hard-hit areas along Pinellas County beaches are hearing that storm debris littering streets, front yards, and vacant lots won’t be picked up if it came […]
HOA and Condo Association Guide to Corporate Transparency Act Compliance
The federal Corporate Transparency Act (CTA) introduced new reporting requirements for a variety of entities, including homeowners’ associations (HOAs) and condominium associations. This law, designed to increase corporate transparency and curb illegal activities such as money laundering and fraud, mandates that certain types of organizations disclose information about their beneficial owners. For the boards of […]
How to Report Beneficial Ownership Information for HOAs with a Free Preparation Worksheet
For most homeowners associations, the deadline to report beneficial ownership information is January 1, 2025. Use the free preparation worksheet and follow this guide for a step-by-step outline to meet reporting requirements and avoid penalties. Read the article…………………………….
Corporate Transparency Act Update: Key Hearing Held in Lawsuit
On Oct. 11, the U.S. District Court in Alexandria, VA held a hearing for preliminary injunction in Community Associations Institute v. U.S. Department of Treasury. CAI anticipates a ruling on the request shortly. This case is a critical component of CAI’s fight to protect community associations from burdensome requirements mandated under the Corporate Transparency Act. […]
Corporate Transparency Act: Impact to Illinois Community Associations
“Corporate Transparency Act: Impact to Illinois Community Associations” – KSN attorneys Omar Malik and Sabina Arutyunyan discuss the Federal Corporate Transparency Act (CTA) and its impact to Illinois community associations. The CTA is a federal law requiring certain corporations, including most community associations, to provide board member information to the U.S. Department of the Treasury. […]
HOA Homefront: How the Corporate Transparency Act affects board members (CA)
Congress in 2021 enacted the Corporate Transparency Act, a law designed to help law enforcement and intelligence agencies catch money launderers and international criminals. All registered corporations outside of 23 exempt categories must file with the US Financial Crimes Enforcement Network and identify their “beneficial owners.” Read the Q&A………………………………..
Hurricane Damage and the FEMA 50% Rule: How to Approach Home Repairs in Flood Zones
In the wake of Hurricane Debbie, Hurricane Helene, and now Hurricane Milton, which have left widespread devastation in southwest Florida, there is no storage shortage of property owners dealing with the aftermath of flooding. As remediation begins, a common question is the FEMA 50% rule. The 50% rule, while always applicable to home improvements or […]
Corporate Transparency Act for Co-ops: What NYC Condo Boards Need to Know Before January 1, 2025
Just when you thought you had enough on your plate—keeping up with energy codes, structural upgrades, and managing an aging building—now you’ve got the Corporate Transparency Act (CTA) to think about. Fun, right? This new law is trying to tackle money laundering, which may feel like a bit of overkill in coops and condos. Read […]
An Update on Compliance with the Corporate Transparency Act (VA)
Community Association clients should be familiar with the background and requirements for the law known as the Corporate Transparency Act (“CTA”). Congress recently enacted this law to address and curb money-laundering and terrorist financing. Unfortunately, it has ensnared a broad range of businesses within its requirements, including condominiums, cooperatives and homeowner’s associations. Upon realizing the […]
HOA Center Advisory: Corporate Transparency Act Applicability To Common Interest Communities (CO)
In recent months, there has been some confusion about the effects of the Corporate Transparency Act (“CTA”) on Colorado Common Interest Communities (HOAs, POAs, Condominiums, Cooperatives, etc.). The CTA was enacted in 2021 to limit illicit financial activity, but, since passage, there has been some debate about if Common Interest Communities are subject to the […]
Beneficial Ownership Reporting Outreach and Education Toolkit (CTA)
This toolkit is a resource to use in efforts to educate small business owners about new beneficial ownership reporting requirements, mandated by the bipartisan Corporate Transparency Act. Templates and sample content have been structured so that you can easily tailor the message for your organization. Thank you for sharing and amplifying this important information. Read […]
Are HOAs Exempt From the CTA?
By January 1, 2025 over 32 million small companies must report their beneficial owners to the Treasury Department. Failure to report creates substantial criminal and civil liabilities for the company and its beneficial owners. The question has arisen, do homeowner associations have to report under the Corporate Transparency Act (CTA)? The State of Colorado seems […]