As previously reported, new reporting requirements under the Corporate Transparency Act (“CTA”) went into effect in January 2024. These changes require certain corporate entities (including condominium and homeowner associations) to provide personal details of the individuals who exercise control over the company (i.e. members of the board of directors). In response to these new requirements, the National Small Business Association filed a lawsuit against the U.S. Treasury Department contending that these new reporting requirements are unconstitutional because they infringe on protected rights of state sovereignty, privacy and due process.
On March 1, 2024, U.S. District Judge Liles C. Burke ruled that the CTA is unconstitutional. Judge Burke also gave the U.S. Treasury Department thirty (30) days to appeal this decision. This new ruling could ultimately mean that condominium and homeowner associations do not need to comply with the new reporting requirements of the CTA. We continue to recommend that associations take a “wait and see” approach concerning compliance.
For more information about this article, contact Tressler attorney Joseph Silverstein at jsilverstein@tresslerllp.com.