Category: Federal Law & Regulations

Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, Corporate Transparency Act, CTA

by Richard S. Ekimoto, Esq. I recently included a short post about the Federal District Court order halting enforcement of the CTA. The Federal District Court Order granted a Nationwide injunction blocked the enforcement of the CTA reporting requirement stating that “reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.” Since my post, FinCen filed a notice of appeal to the Fifth Circuit Court [Read More...]

Categories: Board Duties, Community Association Management, Federal Law & Regulations, General Tags: Beneficial Owner Information, Corporate Transparency Act, CTA

By Richard S. Ekimoto, Esq Bloomberg Law has reported a few hours ago that a federal District Court judge in Texas issued a nationwide injunction on the Corporate Transparency Act (“CTA”). The injunction means that the CTA is blocked from being enforced. Judge Amos Mazzant III issued the injunction stating: The CTA is likely unconstitutional as outside of Congress’s power. Because the Reporting Rule implements the CTA, it is likely unconstitutional for the same reasons. [Read More...]

Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, CAI, Corporate Transparency Act, CTA

By Richard S. Ekimoto, Esq Community Associations Institute filed a lawsuit against the U.S. Department of Treasury challenging the Corporate Transparency Act and its application to community associations. The law suit challenges the law on the grounds that community associations are exempt under Section 528 of the Internal Revenue Code and several constitutional grounds. A hearing on a motion for preliminary injunction is scheduled for October 11, 2024. The motion seeks to prevent the U.S. [Read More...]

Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, Corporate Transparency Act, CTA

By Richard S. Ekimoto, Esq. A couple of days ago, on April 18, 2024, FinCen updated its FAQ to add two provisions about community associations. It states: C.10. Are homeowners associations reporting companies?It depends. Homeowners associations (HOAs) can take different corporate forms.As with any entity, if an HOA was not created by the filing of a document with asecretary of state or similar office, then it is not a domestic reporting company. Anincorporated HOA or [Read More...]

Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, Corporate Transparency Act, CTA

By Richard S. Ekimoto, Esq. Last week, I posted information about the Corporate Transparency Act. The Corporate Transparency Act (“CTA”) is a federal law adopted in 2021 which requires Reporting Companies to file information with FinCen about its Beneficial Owners. In my post, I stated that most of the exemptions for Reporting Companies would probably not apply to community associations. I wanted to provide you with a second take from a good friend of mine, [Read More...]