The U.S. Department of Treasury officially suspended enforcement of the Corporate Transparency Act against U.S. citizens and domestic reporting companies. This final interim rule released by the Financial Crimes Enforcement Network on March 21 confirms community associations are no longer required to report beneficial ownership information under the act.
FinCEN issued an interim final rule that revises the definition of a reporting company. Under this revised definition, only foreign entities formed under the laws of another country but registered to do business in the U.S. are required to report beneficial ownership information.
This rule removes U.S.-based entities, including all previously defined “domestic reporting companies,” from the scope of the act. This means U.S. homeowners associations, condominiums, and housing cooperatives are not required to comply with BOI reporting requirements under the act.
FinCEN is accepting public comments on the interim final rule and is expected to finalize the rule later this year. CAI will participate in this process to ensure the interests of community associations continue to be represented.
This development marks a major milestone in CAI’s ongoing efforts to protect community associations from burdensome and inappropriate federal regulations. However, our work is far from over. CAI continues to pursue its lawsuit against the U.S. Department of the Treasury and remains in active communication with Treasury officials and Congress to formally and permanently exempt community associations from the act.
We extend sincere thanks to the thousands of CAI members who contacted their lawmakers, submitted public comments, and amplified the message that community associations should not be subjected to the same requirements as corporations and foreign entities. Your voices were heard loud and clear.
What’s Next?
- No action is required from domestic community associations regarding CTA compliance or BOI reporting.
- CAI will provide updates as the interim rule is finalized and as its lawsuit and advocacy continue.
- FinCEN’s public comment period is open, and CAI will submit formal comments on behalf of members.
- Urge members of Congress to change the law to exempt community associations from BOI reporting requirements.
For ongoing updates and resources, visit www.caionline.org/cta.
