| We want to share an important update regarding the reporting requirements for beneficial ownership information as outlined under the Corporate Transparency Act (CTA).
On December 3, 2024, the U.S. District Court for the Eastern District of Texas, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), issued a preliminary injunction blocking the enforcement of these reporting requirements. On December 5, 2024, the US Dept. of Justice filed a notice of appeal in the case. While this litigation is ongoing, the Financial Crimes Enforcement Network (FinCEN) has stated that it will comply with the court’s order for as long as it remains in effect.
What This Means for HOAs:
- No Current Obligation: Reporting companies are not required to file their beneficial ownership information with FinCEN at this time.
- No Liability: Companies will not be subject to penalties or liability for failing to submit their reports while the preliminary injunction is in place.
- Voluntary Submission: Reporting companies may still choose to voluntarily submit beneficial ownership information reports, should they wish to do so.
We are closely monitoring this situation and will keep you informed of any significant developments, including the potential for changes in compliance deadlines or additional legal proceedings.
If you have any questions about how this may impact your HOA, please don’t hesitate to reach out to our office. We’re here to help.
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