Urgent & Extremely Important: Corporate Transparency Act Reinstated (Due 01/01/25)
As you may be aware, in early December 2024, a Federal judge issued a Preliminary Injunction regarding the implementation of The Corporate Transparency Act. The Act mandated that Homeowner Associations and Board Members, as well as other businesses be required to file a Beneficial Ownership Information with FinCEN.
On late December 23, 2024, the Fifth Circuit Court of appeals granted a Stay over the Injunction issued by the U.S. District Court for the Eastern District of Texas and issued an Order reinstating the January 1, 2025 deadline of filing the Beneficial Ownership Information with FinCEN.
Therefore, The Corporate Transparency Act is back in full force and effect. Failure to comply may result civil and criminal penalties, such as daily fines of $500 until the violation is cured, and criminal penalties of a fine of $10,000 and up to two years of imprisonment.
As such, our office recommends that all Homeowner Associations and individual Board Members file the required Beneficial Ownership Information form with FinCEN. The link to the website for filing the Beneficial Ownership Information form and for additional information is fincen.gov/boi.
Our office is available to help Associations draft policies to ensure that all members of the Board of Directors comply with this requirement. The cost for such a policy will be $275.00. In addition, we recommend that Boards adopt limited Bylaw amendments that require Board members to be in compliance with any and all legislative requirements regarding this Act and any other. The cost to draft a limited Bylaw amendment is $225.00.
