As many of our clients are now aware, the Federal Corporate Transparency Act (“CTA”) requires condominium and homeowners associations, as well as co-ops (“Associations”), to file documents and information with the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of the Treasury.
Despite the December 3, 2024 “pause” (i.e., preliminary nationwide injunction) on the CTA filing requirement, on Monday, December 23, 2024, the Federal Fifth Circuit lifted the injunction to (once again) require corporations – including condominium and homeowners associations – to complete their filing. The judges who lifted the injunction on December 23, 2024, believe that the U.S. Department of Justice is likely to prevail in its arguments over the constitutionality of the CTA.
This means that condo and homeowner associations are required to comply with the CTA and complete their filing. FinCEN, however, has extended the deadline previously set for January 1, 2025. The new deadline is now January 13, 2025.
BRK will continue to monitor the situation and issue updates as they become available. However, we strongly recommend that our clients complete their CTA filings before January 13, 2025.