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CTA Compliance REINSTATED – Deadline Extended

FEBRUARY 19, 2025: In the Federal Court System’s continuing saga concerning the Corporate Transparency Act (the “CTA”), nationwide compliance by all small businesses, including Homeowners Associations, is again REINSTATED until further decision of the Federal Courts.

As of February 19, 2025, FinCen has extended the deadline to file an initial, updated, and/or corrected BOI Report by 30 days. The new deadline is now March 21, 2025. The FinCen website now also includes the following Notice:

NOTICE: Failure to file the Beneficial Ownership Information Report before March 21, 2025 will result in penalties of up to $593/day.

Here is a brief recap of the recent federal Court decisions:

  • February 17, 2025: The United States District Court for the Eastern District of Texas, in the matter of Samantha Smith and Robert Means v. U.S. Department of the Treasury, reversed its prior decision and ordered a STAY of its preliminary nationwide injunction (originally issued on January 7, 2025) against the enforcement of the CTA. The District Court referenced the January 23, 2025 U.S. Supreme Court’s decision to stay the similar injunction issued in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. in granting the stay.
  • January 23, 2025: The United States Supreme Court, in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al., granted the U.S. Government’s request for emergency relief in the form of a STAY of the nationwide injunction that was previously REINSTATED by the U.S. Court of Appeals for the Fifth Circuit on December 26, 2024. This STAY means that the nationwide injunction issued in the case is put on hold pending the disposition of the pending appeal to the U.S. Court of Appeals for the Fifth Circuit and a possible appeal to the U.S. Supreme Court. The Supreme Court unfortunately did not decide to immediately address the legal question of whether a U.S. District Court can issue nationwide injunctions, so that question remains for future consideration by the Courts.
  • January 7, 2025: The United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA in the matter of Samantha Smith and Robert Means v. U.S. Department of the Treasury. This was the second nationwide preliminary injunction issued by this same Court to block the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements.
  • December 26, 2024: The U.S. Court of Appeals for the Fifth Circuit REVERSED its earlier decision to stay the District Court’s nationwide preliminary injunction, and reinstated the nationwide preliminary injunction.
  • December 23, 2024: FinCen announced that the deadline for filing the necessary BOI Reports was extended to January 13, 2025.
  • December 23, 2024: The U.S. Court of Appeals for the Fifth Circuit, issued a stay of the preliminary injunction issued by the U.S. District Court, effectively reinstating the enforceability of the January 1, 2025 BOIR deadline.
  • December 3, 2024: The United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. The injunction blocked the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements, rendering the previous January 1, 2025 deadline for compliance unenforceable.

What does this mean for Homeowners Associations?

Unfortunately, this means that the temporary relief from the enforcement of the CTA during the pendency of the ongoing legal process has ended. Homeowners Associations nationwide, like all other small businesses subject to the CTA, are once again under the legal obligation to file an initial BOIR by the above-referenced new deadline.

What does this mean for Homeowners Associations that have already filed BOIRs?

If your Association has already filed its report with FinCen, further filings by the new deadline may still be required. If any information that was provided at the time of your initial filing has changed, then you must now file an updated or corrected BOIR with FinCen. Changes include any new election or appointments of Directors or Officers since the original filing, or any change to the Association’s contact information or the personal information related any of the Beneficial Owners listed on the initial BOIR.

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Of course, this case will be monitored closely for further developments, and further updates will be provided if there are any changes to compliance requirements.

Click here to be directed to the Community Associations Institute’s website with more information about the CTA. 

 

Last Updated: 02/20/2025

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