Imporant Update: Corporate Transparancy Act Reinstated (Due 03/21/25)
As you may be aware, the implementation of The Corporate Transparency Act has been acted upon by various Courts both halting, reinstating, and halting again the implementation of the legislation. The Corporate Transparency Act mandated that Homeowner Associations (HOA) and Board Members, as well as other businesses, be required to file a Beneficial Ownership Information with FinCEN.
On Wednesday, February 19, 2025, United States District Court for the Eastern District of Texas issued an Order reinstating The Act, citing a Supreme Court of the United States’ decision that set precedent for their decision. At such, the Act has been reinstated and a deadline of filing the Beneficial Ownership Information with FinCEN is now March 21, 2025.
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 (or higher based on inflation) until the violation is cured, and criminal penalties of a fine of up to $10,000 and up to two (2) 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 https://www.fincen.gov/boi
Our office is available to file the Beneficial Ownership Information form with FinCEN at our standard hourly rate. Our office is also 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.
Do you have additional questions about these or other legal matters?
If so, we are here to help, please contact us at info@westernlawgroup.com.
THIS IS NOT LEGAL ADVICE. FOR INFORMATIONAL PURPOSES ONLY.
