12/26/2024
On last week, we shared that the required Corporate Transparency Act that requires a Beneficial Ownership Information filing had been blocked. Well, there’s been another change…. on December 23, 2024, the 5th Circuit of the Court of Appeals granted a stay for the government. This means, that all qualifying entities, must file the required and mandated BOI.
This requirement has been or is currently being fought by many organizations, including the Community Association's Institute. Where CAI is stressing that Board Members are volunteers and have no actual ownership over the corporation (HOA).
Currently, government laws do not provide HOA's with a protective class. However, there are some HOA's that are classified and file as 501(c)3 non-profit corporations and those HOA's are exempt from the BOI filing. There are even some HOA's that are classified as large corporations and they too are exempt, in that they have 20 or more employees and produce $5M or more in income.
For the vast majority of HOA's (whom are corporations) across America; they will be required to file a BOI. The filing deadline has been extended through January 13, 2024.
So what does this mean, the BOI that must be filed will require Date of Birth, Drivers License Number and photo of Drivers License or Passport Number and photo of pass port of the officers of your HOA (corporation). Other forms of identification are listed within the act.
This may come as an unsettling request and we encourage you to seek legal advice from your Association’s attorney.
Here is the link for more information on the Corporate Transparency Act. https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf
Here's a new link on the overturn https://www.cbsnews.com/news/corporate-transparency-act-cta-fincen-ruling-injunction-what-it-means/
Please note that a failure to file, could result in severe corporate fines.
PSA -
The Corporate Transparency Act, or CTA, requires some businesses to register with FINCEN next month, or face fines. Here's what to know.