BOI Reporting Currently Voluntary
In the latest rapidly evolving developments with the Corporate Transparency Act (CTA), on December 30, 2024, the nationwide injunction for CTA reporting was reinstated following a December 26, 2024, ruling by the full panel of the Fifth Circuit Court of Appeals while the Court considers the merits of the pending challenge to the CTA in the Texas Top Cop Shop v. Garland case. Following the ruling, FinCEN released a statement announcing Beneficial Ownership Information (BOI) report filings are currently voluntary.
Specifically, FinCEN states: “In light of a recent federal court order, 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 while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
As of the time of this post, CTA reporting is voluntary for homeowner and condominium associations and other reporting companies, and the prior January 2025 deadlines are not enforceable.
However, on December 31, 2024, the U.S. Department of Justice filed an emergency application with the U.S. Supreme Court seeking a stay of the nationwide injunction blocking enforcement of the CTA. Decisions on emergency stay applications to the Supreme Court can be made quickly, especially when enforcement of laws is halted nationwide. This new Supreme Court filing may lead to further clarification regarding CTA and BOI enforcement prior to a ruling on the merits of the Texas Top Cop Shop case. It is possible that the Supreme Court could take action and issue a stay on the injunction, effectively reinstating mandatory CTA reporting.
Although the status of the CTA continues to change quickly, as of today, BOI reporting requirements are not mandatory for community associations, and the January 2025 reporting deadline is suspended. Because of the continuing developments, it is unknown how the issue will ultimately be decided.
NowackHoward continues to closely monitor the litigation and legislation involving the Corporate Transparency Act. CAI | Community Associations Institute also continues to track the various CTA challenges. Visit CAI’s Corporate Transparency Act webpage for ongoing updates.
