We have been providing updates regarding the on-again, off-again Corporate Transparency Act (“CTA”), a new federal law requiring community associations (and other companies) to report information on their “beneficial owners” with the Financial Crimes Enforcement Network (“FinCEN”), which we first wrote about here. We most recently wrote here about a December 26, 2024 Order by the United States Court of Appeals which, until further order, provided that the CTA and its reporting requirements were not in effect. We noted that we could not say with certainty how the court(s) would rule upon further review or how such rulings may impact filing requirements or additional deadlines. Now, there is another important update.
On February 17, 2025, the United States District Court for the Eastern District of Texas granted the government’s motion to stay the nationwide injunction that had, until then, the effect of pausing the CTA’s enforcement.[3] This means the CTA and its reporting requirements are back in effect. On February 18, 2025, FinCEN issued a notice providing that, recognizing that reporting companies may need additional time to comply with their Beneficial Ownership Information reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025 (March 21, 2025) for most companies.[4] FinCEN noted that it will assess its options to further modify deadlines during this 30 day period. Also, any reporting companies that were previously given a reporting deadline later than March 21, 2025 must file by the later deadline.
Our most recent blog on the CTA, during its suspension, noted that community associations may still want to voluntarily file to avoid potential headaches should the CTA be reinstated. Now, filing is required, and our firm remains prepared to help your association file and ensure compliance with the CTA’s reporting requirements.
You can visit this link to provide your reporting information over a secure platform.
There, the association’s representative can provide the association’s beneficial owners information to enable our firm to compile and submit to FinCEN. All information submitted will be contained in a secure portal within our firm. Filings would be billed pursuant to our firm’s hourly fee schedule with your community association.
Our firm will continue to closely monitor the status of the CTA and the legal challenges to the same. We will continue to update our blog accordingly.
Our attorneys at McCabe, Trotter & Beverly, P.C. are well-equipped and prepared to assist your community association with CTA compliance. Please contact us at (803) 724-5000 for further information.
McCabe, Trotter & Beverly, P.C. blogs and other content are for educational and informational purposes only. This is not legal advice and does not create an attorney/client relationship between McCabe, Trotter & Beverly, P.C., and readers. Readers should consult an attorney to understand how this information relates to their personal situation and circumstances. You should not use McCabe, Trotter & Beverly, P.C. blogs or content as a substitute for legal advice from a licensed attorney.
Valerie Garcia Giovanoli
[3] Smith, et al. v. U.S. Dept. of the Treasury, et al., 6:24-cv-00336, (E.D. Tex. Feb 17, 2025).
[4] https://www.fincen.gov/sites/default/files/shared/FinCEN-BOI-Notice-Deadline-Extension-508FINAL.pdf