We have yet another wild development with the Corporate Transparency Act: Filings are now voluntary and not subject to fines for failure to comply.
On December 26, 2024, the full panel of judges of the Fifth Circuit Court of Appeals issued an order vacating the stay of a preliminary injunction halting reporting compliance under the Corporate Transparency Act.
On December 27, the U.S. Department of Treasury’s FinCEN division released a statement announcing beneficial ownership interest report (BOIR) filings are voluntary.
The most recent decision suspends the upcoming January 13, 2025, extended deadline requiring community association boards and corporations/LLC to file sensitive personal information with the government.
This means beneficial ownership information reporting requirements have been paused again by a federal court for applicable community associations under federal statute. This continues to be a developing issue. Association boards should remain vigilant and informed on these ongoing updates.
FinCEN issued the following statement: “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Tressler LLP’s HOA Law Attorneys Katerina Tsoukalas-Heitkemper and Kathryn Formeller will continue to monitor the CTA and provide updates as they develop. Feel free to reach out to us with any questions.