Corporate Transparency Act (“CTA”)
About Our CTA Service
The CTA creates a new reporting requirement under which Reporting Companies, which includes community associations, must file a Beneficial Ownership Information (“BOI”) report with the Financial Crimes Enforcement Network (“FinCEN”). Altitude will act as a third-party service provider in filing BOI reports for associations. Download our information sheet below for details on our new CTA service!
Download the CTA Information Sheet
If you are interested in Altitude Community Law filing your CTA BOI report, please scroll down and fill out the form below and we will send you the fee agreement along with instructions for the information we will need.
LATEST CTA DEVELOPMENTS:
On February 18, 2025, the Department of Justice’s request for a stay in the Smith v. U.S. Department of the Treasury case was granted. This ruling effectively removed the last existing barrier to FinCEN’s ability to enforce the CTA filing restrictions. So, what does this mean for associations? Because the nationwide injunction inhibiting the BOI report filing was lifted per the stay, it’s time to start filing again. The new deadline is set for March 21, 2025, giving everyone roughly a month to comply. We recommend filing the reports as soon as possible to ensure your association meets the new deadline. We will continue to monitor and provide updates if there are any additional changes.
See below for earlier CTA News:
On February 5, 2025, the Department of Justice (“DOJ”) filed an appeal of the nationwide injunction in Smith v. U.S. Department of the Treasury, which is responsible for the current hold on BOI reporting, despite the Supreme Court’s ruling in Texas Top Cop Shop.
In conjunction with the appeal, the DOJ has requested a stay, which would lift the nationwide injunction on BOI reporting enforcement while the Fifth Circuit considers the appeal. If granted, FinCEN has stated it will provide a compliance extension as follows:
“If this Court grants the stay, FinCEN intends to announce that it will extend the compliance deadline for thirty days. During that period, FinCEN will assess whether it is appropriate to modify the CTA’s reporting requirements to alleviate the burden on low-risk entities while prioritizing enforcement to address the most significant risks to U.S. national security.”
FinCEN’s mention of creating an exempted “low-risk” category may offer relief to some later (could this include associations?!), but unfortunately, it only offers more confusion in the meantime. We do not yet know the criteria that would constitute a “low-risk” business, but if the stay is granted, we will keep you updated.
For now, BOI reporting is still voluntary. Associations who have not yet filed their BOI Reports may continue to file them voluntarily. However, if they choose not to file we highly recommend that boards get their information ready, as there may be a sudden reinstatement of the requirements, leaving only 30 days to file.
We will continue to monitor the situation closely and provide updates as we hear more.
On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
As stated in our most recent eblast, on December 23rd a panel of the Fifth Circuit Court of Appeals granted a motion to lift the injunction on CTA reporting requirements. This served to reinstate the January 1, 2025 deadline for associations to file their Beneficial Ownership Information (“BOI”) reports with the Financial Crimes Enforcement Network (“FinCEN”). Immediately after, FinCEN provided an extension to January 13, 2025 to file such reports.
Three days later, on December 26th a different panel of the Court entered an Order restoring the injunction. This Order means that the CTA reporting requirements are again suspended, and FinCEN has posted on its website that compliance is again voluntary.
Additionally, on December 31st the Department of Justice sought a stay of the injunction pending the ongoing appeal from the Supreme Court of the United States.
So now we await two court’s decisions: The Supreme Court’s decision regarding the December 31st request for stay, and the Court of Appeals decision on the underlying merits of the case (i.e., the CTA’s constitutionality).
The Supreme Court has set a January 10 deadline for the plaintiff in the Texas Top Cop Shop case to address the Department of Justice’s motion for a stay. Accordingly, the Supreme Court is actively considering whether to lift the preliminary injunction.
The Court of Appeals has set March 25, 2025 as the date for oral argument on the merits. After the briefing is completed and arguments are considered, the Court of Appeals will report its decision.
As we have all seen over the past month, CTA news shifts rapidly and unexpectedly. Although filing is currently voluntary, it is still our strong recommendation that boards gather information to be ready to file, or simply voluntarily comply. We will continue to provide you updates.