The confusion regarding the Corporate Transparency Act (“CTA”) and related reporting requirements continues, most recently due to a January 23, 2025 decision handed down from the U.S. Supreme Court, which granted a motion related to CTA filing in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. However, a separate nationwide order related to a separate case (Smith v. U.S. Department of the Treasury) remains in place.
Given the disparity in the two court decisions, community associations are still not required to file beneficial ownership information (“BOIR”) related to the CTA. However, community associations may continue to voluntarily submit beneficial ownership information reports if they so choose.
On January 24, 2025, FinCEN publicly stated that reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so for the time being, but that voluntary submission is still permitted.
Our recommendation remains for each community association board to make its own decision. For those boards that wish to voluntarily file in order to ensure compliance despite the whipsawing by the Federal Court system, we encourage them to do so. Boards that prefer to continue the “wait and see” approach may do so, with the understanding that the situation can change rapidly and a deadline for filing can be reinstated.
BRK will continue to monitor the situation and issue updates as they become available.