Corporate Transparency Act Reporting Service

As the Corporate Transparency Act continues to slog its way through the federal courts, it does not appear that we will receive a definitive decision on the Act’s constitutionality or applicability to community associations before the current effective date of January 1, 2025. Accordingly, we believe it is important that our clients begin gathering the information needed for reporting compliance with the CTA. 

If you would like McCabe Trotter & Beverly to file the beneficial ownership information with FinCEN on behalf of your association, please use the link at the bottom of this memo.

You will note that Part One of the form is basic information for the manager or board member to fill out about your HOA generally. Upon receipt of Part One, we will send a secure signature request to each individual beneficial owner for completion. In order to open a file, please complete Part One of the form via RightSignature, and we will respond with an acknowledgment, open a file and begin the process of distributing and collecting forms and documents from each individual beneficial owner. Beneficial owners can securely upload a copy of their driver’s license or passport and the form itself containing their personal information at the link listed on the form.

One of the biggest risks of penalty for failing to report is updating information as new directors come onto the board, or when there is a change in management company. A change in beneficial owners is required to be reported within 30 days of such change.  For this reason, you will see several questions in Part One of the form regarding the timing of the association’s election, and an acknowledgment that the board must report any changes in directors on an ongoing basis. We will calendar the file in our software and monitor on a periodic basis to inquire about changes to help remind the Board, and particularly with reminders around the time of your Board elections.  But, in light of the sheer volume of filings we will be handling, we remind the Board it is their obligation to notify us about changes to the association’s beneficial owners.

Again, we are hopeful that some of the legislative and legal challenges might yet provide relief from having to comply with the CTA this year, but we cannot guarantee that. We think it is prudent to start gathering the information now, and we will continue to monitor closely on these potential changes in the law. Please keep in mind that in the case of a newly formed association (formed after January 1, 2024), you have an obligation to file the beneficial ownership information within 90 days of formation, and we need to mark those cases as the highest priority.

Please do not hesitate to reach out to us if you have any questions.