As of Dec. 20, filing of beneficial ownership information under the Corporate Transparency Act continues to be voluntary for community associations following a preliminary injunction ordered by the U.S. District Court for the Eastern District of Texas. If the court’s temporary injunction is lifted between now and the end of the year, filing requirements and deadlines may be reinstated. Stay tuned to www.caionline.org/cta for updates.
Congress Didn’t Address Changes to CTA in Government Funding Legislation
At this time, Congress has opted not to legislatively make any changes to the substance or filing deadlines of the Corporate Transparency Act.
CAI Files Amicus Brief in U.S. Court of Appeals of the Fifth Circuit Following NFIB Win in the U.S. District Court for the Eastern District of Texas
In another important development on Dec. 18, CAI filed an amicus brief in support of the plaintiffs in Texas Top Cop Shop, Inc. v. Garland, et al., which challenges the act’s implementation. Following the nationwide preliminary injunction halting enforcement and compliance of the act by the U.S. District Court for the Eastern District of Texas, the government filed a motion to either stay the injunction or narrow the parties in this case and request the compliance deadline be reinstated to Dec. 31. The government also appealed the ruling to the U.S. Court of Appeals for the Fifth Circuit.
CAI’s amicus brief supports the district court’s nationwide preliminary injunction, emphasizing the law’s burden on small businesses and nonprofit organizations such as community associations. The brief also emphasizes the need for transparency in lawmaking and implementation and highlights the unique challenges community associations face under the act. By lending its voice to this case, CAI aims to ensure the law is applied in a fair manner and doesn’t impose undue burdens on associations. Learn more about CAI’s Amicus Curiae Program here
What’s Next?
CAI continues its advocacy efforts to delay BOI filing and exempt community associations from the act. CAI is still pursuing its lawsuit against the Department of Treasury, which is expected to continue in January.
We’re closely monitoring developments in the NFIB case and will provide updates as the fifth circuit hears this matter.
For any questions or to learn how to get involved in CAI’s advocacy efforts, please visit the CTA Resource Center or contact CAI’s government and public affairs team at government@caionline.org.
Subscribe to CAI’s Advocacy blog for immediate updates on the act and its impact on community associations here.
