Below is a helpful tip from the Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC regarding updates on the new corporate transparency law . . .
As previously reported, the Corporate Transparency Act (CTA) requires 32.6 million businesses in the U.S. to file reports with the Financial Crimes Enforcement Network (FinCEN). It means HOA board members have to file personal information with FinCEN or face $500-a-day fines.
Fortunately, a federal court halted all enforcement of CTA’s reporting requirements nationwide. Last month, the government appealed the ruling to the Fifth Circuit Court of Appeals and lost.
On New Year’s Eve, the Department of Justice (DOJ) filed an emergency application with the U.S. Supreme Court seeking a stay of the nationwide injunction or, in the alternative, a limitation of its scope to the plaintiffs in the case.
On January 3, 2025, Supreme Court Justice Samuel Alito set a deadline of January 10, 2025 for the plaintiffs to submit their response to the government’s application for a stay.
Within days of the DOJ’s application, another federal judge blocked enforcement of the CTA. A Judge for the U.S. District Court for the Eastern District of Texas wrote:
The Corporate Transparency Act is unprecedented in its breadth and expands federal power beyond constitutional limits… It mandates the disclosure of personal information from millions of private entities while intruding on an area of traditional state concern.
To keep things interesting, House members introduced HR 8147 to repeal the CTA. Until the Supreme Court makes a ruling, HOA boards of directors do NOT need to report to FinCEN.
DISCLAIMER. The Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC provides commentary only, not legal advice. For legal advice, you’ll need to hire legal counsel. You can hire ADAMS | STIRLING PLC; Keep in mind they are considered corporate counsel to associations only.