Update, September 8, 2026: this requirement no longer applies to community associations. On August 14, 2026, FinCEN published a final rule (91 FR 52508) that permanently removes domestic entities from the definition of a reporting company and exempts United States persons from being reported. An association incorporated under state law now has no obligation to file a beneficial ownership information report, no obligation to update or correct anything it filed during the window when reporting was required, and no need to withdraw a prior filing. FinCEN has said it will delete the previously reported information itself, so boards do not need to take any action. Two caveats are worth keeping in mind. The Corporate Transparency Act statute was not repealed, only the rule was changed, so the exemption exists by regulation. And several states are weighing their own transparency laws, which is where any future obligation is most likely to appear. Current federal guidance is at fincen.gov/boi, and CAI’s summary for community associations is here. The original post is preserved below as it was written.
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction halting enforcement of the Corporate Transparency Act (CTA), which requires companies to report beneficial ownership information (BOI). Judge Amos L. Mazzant III ruled that the U.S. Department of Treasury cannot enforce the act’s BOI reporting requirements, effectively blocking the January 1, 2025, deadline. This injunction applies across the entire U.S. and affects all organizations, including community associations. It is anticipated that there will be further litigation and potential appeal of the ruling.
The Community Associations Institute (CAI) has voiced its belief that the CTA imposes an unnecessary burden on community associations, which function differently from traditional businesses. CAI is advocating for either a repeal or exemption of the act to ease reporting obligations for volunteer leaders. The injunction follows similar arguments made in CAI’s own lawsuit against the U.S. Treasury Department and other federal agencies, citing overreach of federal authority and violations of constitutional rights.
The Eclipse team continues to monitor the case and urges community associations and their leaders to stay informed about future developments.
