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CTA: The Latest News

Started by CathyA3 • 10 replies • 206 views

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CathyA3 (Ohio)
Posts: 6,299
Posted:
This quote is from a recent email from CAI:

"On Feb. 27, FinCEN announced it will not issue fines, penalties, or take other enforcement actions against an entity’s failure to file or update beneficial ownership information (BOI) under the Corporate Transparency Act by the current deadlines.

FinCEN also states no enforcement actions will be taken until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed. FinCEN intends to issue this interim rule no later than March 21.

FinCEN also intends to solicit public comment on potential revisions to existing BOI reporting requirements. FinCEN will consider those comments as part of a notice of proposed rulemaking anticipated to be issued later this year to minimize the burden on small businesses. The rulemaking is intended to ensure BOI is highly useful to important national security, intelligence, and law enforcement activities and determine if modifications to the deadlines should be considered."

I'm happy to see the part in bold. They should have done that a long time ago. Maybe they'd have found out that HOA board presidents are not comparable to CEOs and other officers in for-profit companies, and saved us all a bunch of grief.

ElleN (Idaho)
Posts: 1,339
Posted:
Quote:
Posted By CathyA3 on 03/01/2025 4:13 AM

FinCEN also intends to solicit public comment on potential revisions to existing BOI reporting requirements. FinCEN will consider those comments as part of a notice of proposed rulemaking anticipated to be issued later this year to minimize the burden on small businesses. The rulemaking is intended to ensure BOI is highly useful to important national security, intelligence, and law enforcement activities and determine if modifications to the deadlines should be considered."

I'm happy to see the part in bold. They should have done that a long time ago.
They did do this a long (IMO) time ago, back in April 2021 and Dec 2022. See

https://www.federalregister.gov/documents/2021/04/05/2021-06922/beneficial-ownership-information-reporting-requirements

https://www.federalregister.gov/documents/2022/12/16/2022-27031/beneficial-ownership-information-access-and-safeguards-and-use-of-fincen-identifiers-for-entities
ElleN (Idaho)
Posts: 1,339
Posted:
Quote:
Posted By ElleN on 03/01/2025 7:06 AM
[The Treasury Department yada invited public comment] a long (IMO) time ago, back in April 2021 and Dec 2022. See

https://www.federalregister.gov/documents/2021/04/05/2021-06922/beneficial-ownership-information-reporting-requirements

https://www.federalregister.gov/documents/2022/12/16/2022-27031/beneficial-ownership-information-access-and-safeguards-and-use-of-fincen-identifiers-for-entities
Federal statute requires public comment periods. See 5 USC 553, for starters.

The first report on CTA at caionline.org seems to have been in October, 2023. See https://advocacy.caionline.org/how-the-corporate-transparency-act-applies-to-community-associations/.

Did CAI drop the ball? I guess this is a matter of opinion.

In September 2024, CAI advertised its partnership with a software company hawking its services to help with compliance with CTA. See https://www.caionline.org/community-associations-institute-welcomes-hoacta-as-a-new-premier-partner-sponsor/
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By CathyA3 on 03/01/2025 4:13 AM
This quote is from a recent email from CAI:


If you are like me and prefer the original source of the info:

https://fincen.gov/

ArthurS7 (Pennsylvania)
Posts: 32
Posted:
Did this article say no more enforcement.? Or is this something else?

https://www.nbcnews.com/business/business-news/treasury-ends-enforcement-business-ownership-database-meant-stop-shell-rcna194493
TimB4 (Tennessee)
Posts: 21,062
Posted:
Interesting.

Still affecting HOAs/COAs but no penalties and another rule change.

It appears that (perhaps) the government is starting to listen (but we will have to wait a few more weeks to know for sure).
CathyA3 (Ohio)
Posts: 6,299
Posted:
I suspect they were surprised at the amount of pushback, given that many people support the idea of curbing financial crimes. Which I think is kinda the point. As far as I can tell, most of the vocal objectors supported the goal of the law - they just didn't believe that compiling a database of law-abiding folks' information is the way to do it.

And the Treasury Departmnn5 can see which way the political winds are blowing these days. The political winds may even have fueled some of the pushback. People who were OK with reporting their private information ("the government already has it") may have thought twice when unelected, unappointed, non-government entities started pawing through people's financial information.
ElleN (Idaho)
Posts: 1,339
Posted:
Uh huh. I am not sure the Treasury Secretary was completely honest here.

I think the truth is this:

In early February the House of Representatives "passed H.R. 736 which would allow companies formed or registered before January 1, 2024, to submit beneficial ownership information to FinCEN by January 1, 2026, instead of by January 1, 2025, as required under the current statute. The bill passed the House with overwhelming bipartisan support by a vote of 408 to zero. The next day, Senator Tim Scott introduced a companion bill in the Senate, S. 505."

AntonioL (California)
Posts: 4
Posted:
"Still affecting HOAs/COAs but no penalties and another rule change."

I seem to recall that the new rules are going to also limit the reporting mandate to foreign entitles; if so, then HOAs would be free of this burden.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By AntonioL on 03/06/2025 1:26 PM
"Still affecting HOAs/COAs but no penalties and another rule change."

I seem to recall that the new rules are going to also limit the reporting mandate to foreign entitles; if so, then HOAs would be free of this burden.

They've announced that they'll be proposing a change in the law, but it hasn't officially happened yet. From the Treasury Department announcement:

The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.

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