ANOTHER UPDATE: CORPORATE TRANSPARENCY ACT
On December 3, 2024, a Texas federal court issued a preliminary injunction enjoining enforcement of the reporting requirements set forth in the Corporate Transparency Act (“CTA”). The Court’s Order provides in pertinent part: “…the CTA, 31 U.S.C. § 5336 is hereby enjoined. Enforcement of the Reporting Rule, 31 C.F.R. 1010.380 is also hereby enjoined, and the compliance deadline is stayed under § 705 of the APA. Neither may be enforced, and reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.”
There is still some uncertainty as to the scope of this injunction and whether it applies to all community associations across the country, but the language contained in the Order certainly seems to indicate that the injunction is intended to apply nationwide. Nonetheless, we are still emphasizing caution — particularly in view of the penalties for non-compliance. Of course, if your community is within one of the areas designated by FEMA as eligible for relief such that your association’s reporting deadline was already extended until July 1, 2025, you have more time to see how this unfolds.
As always, be sure to consult with your community’s corporate counsel to discuss your specific reporting requirements/deadlines.
Update: CAI opines that the injunction applies nationally – https://advocacy.caionline.org/corporate-transparency-act-blocked-nationwide-by-texas-federal-judge/
**12-23-24 UPDATE: On December 23, 2024, a federal court of appeals lifted the preliminary injunction blocking the reporting deadline for Beneficial Ownership Information (BOI). Following the decision, FinCEN has extended its reporting deadline to January 13, 2025, meaning businesses will have an additional 12 days to file their BOI reports [note the above-cited extension until July 1, 2025 applicable to FEMA relief areas].
**12-26-24 UPDATE: Fifth Circuit reinstitutes the injunction. Deadline once again stayed (for now…). Link to decision: https://www.ca5.uscourts.gov/opinions/unpub/24/24-40792..pdf
RPG’s Recent Articles:
- Condo FAQs – What is a common element versus a limited common element? What is an appurtenance? When is pre-suit arbitration required?
- (Yet Another) Corporate Transparency Act Update – December 2024
- The Corporate Transparency Act – November 2024 Update
- Protecting Your Community Association After a Hurricane: Avoiding Fraud and Ensuring Proper Recovery
- General Guidance for Florida Community Associations Following a Major Storm
Disclaimer: This article was created by Rabin Parker Gurley, P.A. for informational purposes only; not to provide legal advice. While we hope this article is beneficial to you, we do not guarantee its completeness or applicability to any particular legal situation. Further, our providing access to this information and/or to any materials is not intended to, nor shall it be deemed to, create, and receipt of it does not constitute, a lawyer-client relationship. Those who read this information should not act upon it without seeking legal advice.
© 2024 Rabin Parker Gurley, P.A. All rights reserved. Recipients may reproduce materials available on our website for their own personal use and for non-commercial distribution. Copies must include the above copyright notice.
