On March 26, 2025, FinCEN issued an Interim Final Rule that removes beneficial ownership reporting requirements under the Corporate Transparency Act (“CTA”) for U.S. citizens, domestic reporting companies, and their beneficial owners. This means that Georgia homeowner and condominium associations and their boards of directors are no longer required to report under the CTA.
Under the Interim Final Rule, the definition of “reporting company” is now limited to entities formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction.
This Interim Final Rule is a welcome outcome for the countless volunteer leaders serving community associations across the country. While NowackHoward fully supports efforts to prevent money laundering and terrorist financing, which is the intended purpose of the CTA, applying the CTA to community associations was an unintended and burdensome consequence of the legislation.
What Does This Mean?
- Homeowner and condominium associations in Georgia and throughout the U.S. are no longer subject to CTA reporting requirements.
- U.S. citizens, domestic reporting companies, and their beneficial owners are now fully exempt from CTA reporting requirements.
- No penalties or fines will be imposed on HOA and condominium officers and directors who have not yet filed their initial beneficial ownership reports or who have not filed previously required 30-day updates for changes.
- Foreign entities doing business in the U.S. remain subject to the CTA’s reporting requirements with a new deadline of April 25, 2025.
- FinCEN is accepting public comments on the Interim Final Rule and expects to issue a Final Rule later this year.
Our Message
NowackHoward continues to closely monitor FinCEN’s rulemaking process as well as the pending litigation and legislation involving the CTA. The Community Associations Institute also continues to closely track the various CTA litigation and legislation. Visit CAI’s Corporate Transparency Act webpage for ongoing updates and advocacy efforts and opportunities.
If your Board of Directors has questions about the Interim Final Rule, you find more information at Interim Final Rule: Questions and Answers. Also, the full Interim Final Rule is available through the Federal Register.
If your community association needs legal guidance on this or other matters, turn to NowackHoward. Our team of experienced HOA attorneys is dedicated to the practice of community association law and can help navigate all types of HOA legal issues. With a reputation as a top law firm in this field, we’ve earned recognition for our outstanding services. Trust us to help support your association.
