On September 10, the national organization Community
Associations Institute filed a lawsuit against the Department of
Treasury challenging the application of the Corporate Transparency
Act's beneficial owner reporting requirements on community associations.
Issues CAI highlights in their lawsuit include:
- Nonprofit communities
should be exempt from CTA
- Improper rulemaking
procedures
- Arbitrary and
capricious action
- Constitutional
violations
- Overreach of federal
powers
- Equal protection
violation
Click
here to read the full details of CAI's lawsuit.
What does this mean for you?
Currently, this lawsuit has no impact on the reporting
process for POAs. All POAs who do not fall under one of the exemptions
must file their beneficial owner information by January 1, 2025.
Failure to do so may result in financial and criminal penalties for
board members. Should this change, RMWBH will provide you with updates
via email, our website and LinkedIn.