Followers of our blog may recall that we have published no less than seven articles regarding the on-again-off-again requirements of the Corporate Transparency Act (“CTA”), a federal law which required companies, to include community associations, to report information on their “beneficial owners” with the Financial Crimes Enforcement Network (“FinCEN”). We first wrote in January 2024 about the CTA and its requirements but a series of legal challenges and rulings resulted in various reversals, leaving it to be anyone’s guess as to the ultimate fate of the CTA’s requirements. Well, thanks to a recent final rule issued by FinCEN effective August 14, 2026 (the “Final Rule”), we may have some closure.[1]
The Final Rule issued in August took exemptions that had been set out in an “Interim Final Rule” from March 26, 2025, and made them permanent.[2]
Of particular interest for community associations is the exemption of U.S. companies from beneficial ownership reporting. Not only does the Final Rule exempt U.S. community associations (and other “companies”) from the reporting requirement, but it also provides that FinCEN will delete any information about any individuals that FinCEN reasonably believes to be a U.S. person. While the Final Rule in its entirety can be viewed, FinCEN has also provided a “Frequently Asked Questions” document with some pertinent information summarized more concisely.
Suffice to say, it does not appear that there will be beneficial reporting obligations for U.S. community associations under the CTA in the foreseeable future and/or during the current administration.
Rather, it appears that after years of uncertainty and legal challenges, to include from the Community Associations Institute (“CAI”) itself which we wrote about, we can say with apparent finality that community associations in South Carolina and North Carolina are exempt from reporting beneficial ownership information under the CTA. Of course, our firm will keep an eye out for any unexpected changes.
This article is not intended to be an exhaustive discussion of applicable law regarding the Corporate Transparency Act nor any guarantee of the outcome of any litigation regarding the same. Our attorneys at McCabe, Trotter & Beverly, P.C. are well-equipped and prepared to assist your community association with legal compliance. Please contact us at 803-724-5000 for further information.
- Beneficial Ownership Information Reporting Requirement Revision, 91 Fed. Reg. 156 (Aug. 14, 2026).
- Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension, 90 Fed. Reg. 57 (March 26, 2025).
Valerie Garcia Giovanoli
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.