UPDATE ON THE FEDERAL CORPORATE TRANSPARENCY ACT (“CTA”) FILING REQUIREMENTS

There has been a lot of discussion regarding the filing requirements for community associations under the newly adopted CTA regulations in the news lately. Some of our association clients have asked whether they should rush to file the Beneficial Ownership Information Report now or wait until the latter part of this year.

For now, we advise our clients to stay tuned and revisit the issue toward the later part of the year. There is no rush to file right now, but the consensus among professionals across the country is the CTA does apply to community associations.

There are a few reasons we believe it is more prudent to wait. First, associations in existence before January 1, 2024, have to report by January 1, 2025. There is federal legislation pending that seeks to extend the deadline to file until 2026.  It is very possible that the extension may be adopted, in which case no filing will be needed until that date.

In addition, under the requirements, an association has to report every time there is a change of the board members.  So, if associations file now, they probably will need to file again, especially if an annual meeting will be held before the end of this year.  Lastly, Community Associations Institute (“CAI”) is also working to try and get condominiums exempt from the requirements.  

MEEB has written articles detailing the information required when an association does file. See MEEB’s article CTA Reporting Requirement detailing the filing requirements. Most, if not all, of the required information associations will need should be readily available. 

There are also instructions about how to complete the filings:  Click here for Instructions on how to complete BOIR or visit the FinCEN website which has step-by-step instructions.

MEEB will continue to monitor this issue and will alert you to any important updates.  If you would like to discuss this further or have any questions, please contact our attorneys at law@meeb.com.