Breaking News Alert – 5th Circuit Court of Appeal Stays Injunction Against the Corporate Transparency Act – January 1, 2025 Reporting Deadline in Effect Except for Corporations in Counties Impacted by Hurricanes Ian and Milton
The 5th Circuit Court of Appeals in the case of Texas Top Cop v. Garland granted the United States’ Motion for a Temporary Stay pending appeal on the enforcement of the Corporate Transparency Act. As many of you know, a federal district court in Texas had issued an order enjoining enforcement of the CTA. The order holds “the government has made a strong showing that it is likely to succeed on the merits in defending CTA’s constitutionality” and that “a last-minute injunction of a statute proposed and passed by the people’s representatives necessarily inflicts irreparable harm”. As a result, most corporations will be required to comply with the CTA reporting requirements by the end of the year, though many in Florida have an extension due to the impact of this year’s hurricanes.
The CTA requires community associations to report as a “Reporting Company” to the federal “Financial Crimes Enforcement Network” (“FinCen”) specific information about the association’s “beneficial owners” no later than January 1, 2025. Because a community association’s board of directors are elected and authorized to perform such tasks as outlined in the association’s governing documents (i.e. the Declaration, Articles of Incorporation, Bylaws), each member of the association’s Board is considered a “beneficial owner” of the association. Therefore, unless your community qualifies for an extension due to this year’s hurricanes, you must report by January 1, 2025.
Update on this blog is available here Latest Breaking News.
To qualify for the six-month extension to the reporting deadline, your community must be within a county identified in both the FEMA & IRS extension notices. The following counties qualify for the six-month extension:
Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Miami-Dade, Monroe, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia.
Remember to consult with your association counsel regarding the new statutory and federal reporting requirement applicable to your association prior to the looming deadlines.