Corporate Transparency Act Reporting Requirements Reinstated; Initial Reporting Deadline Pushed Back: What Do Community Associations Need to Know?

In a surprisingly quick and unexpected decision in terms of timing, the Fifth Circuit Court of Appeals has lifted the temporary pause on the Corporate Transparency Act (“CTA”) and thus reinstated the reporting requirements under the CTA mere days before the initial January 1^st reporting deadline. The order reinstating the CTA’s reporting requirements is available here. The temporary pause on the CTA’s reporting requirements was due to a nationwide injunction issued by a U.S District Court in the Eastern District of Texas. Click here for LP’s article on the nationwide injunction. 

In light of this decision and in recognition of the compliance chaos it created, hours after yesterday’s ruling was issued, the Financial Crimes Enforcement Network of the U.S. Treasury Department (“FinCEN”) pushed back the reporting deadline for most reporting companies (i.e., those created or registered prior to January 1, 2024) to January 13, 2025. FinCEN’s guidance concerning the updated initial CTA reporting deadline is available here and is summarized below:

*Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025

This ruling (and resulting updated initial reporting deadline) is the latest in a series of challenges to the CTA’s reporting requirements and is not a final ruling on the constitutionality of the CTA. As we have previously noted, clarity regarding the fate of the CTA and its reporting requirements is expected in the coming weeks and months as the issue evolves

For now, community associations that have not yet completed their initial CTA reporting with FinCEN need to do so by the new January 13^th deadline. For community associations that have already completed their initial CTA filing, no further action is needed in response to this latest ruling.

LP is committed to keeping our community association clients informed of, and prepared to proactively and successfully navigate, any changes in the law. For questions regarding the CTA, including reporting requirements, or other issues facing your condominium or community association or co-op, please contact Howard Dakoff, Laura Marinelli, Adam Kahn, or Molly Mackey of LP’s Community Association Group.