Corporate Transparency Act - Again

Started by TimB4 • 1 replies • 196 views

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TimB4 (Tennessee)
Posts: 21,059

Posted:

A reminder to all - The CTA still applies

The Corporate Transparency Act still applies to HOA/COAs (if you are incorporated).

You may have heard of the legal action that had a court rule the act unconstitutional. However, that ruling only applies to those who brought the complaint. It does not apply to all. See: Federal District Court Rules Corporate Transparency Act Unconstitutional and Corporate Transparency Act Declared Unconstitutional: How Does This Impact Your Company?

For more info on complying with the act, see: US Treasury - Beneficial Ownership Information website

To See previous discussions from this site:

Subject: HOAs/COAs and the Corporate Transparency Act April 2023 thread

Subject: HOA New Federal Reporting Requirements Jan 2024 thread

Subject: Please Contact Your Representatives concerning the Corporate Transparency Act Feb 2024 thread

CathyA3 (Ohio)
Posts: 6,299

Posted:

Good reminder. I think many heard "declared unconstitutional" and assumed everything was paused. Since community associations probably aren't members of the National Small Business Association, the court hasn't decided that the Act doesn't apply to us.

However, the court's reasoning suggests that the ruling can and should apply broadly. Quote:

In its ruling, the Court concluded that the “CTA exceeds the Constitution’s limits on the legislative branch and lacks a sufficient nexus to any enumerated power to be a necessary or proper means of achieving Congress’ policy goals.”

In reaching its decision, the Court found that corporations are established by state law, and that the Congressional findings in the CTA expressing concerns over foreign money laundering and necessity of collection of BOI for U.S. national security interests were not sufficient to justify regulation of the domestic activity of incorporation under Congress’ foreign affairs powers.

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