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.
CAI’s Government and Public Affairs team is closely watching for additional information on FinCEN’s public comment period to ensure the community association industry’s voice is heard.
This announcement follows FinCEN’s Feb. 19 guidance recognizing reporting entities may need additional time to comply with reporting obligations. According to FinCEN, the new deadline to file an initial, updated, and/or corrected BOI report is March 21 for the majority of reporting entities. FinCEN will provide updates if further deadline modifications are necessary.
CTA Lobbying and Advocacy Efforts Continue—Contact Members of Congress
While the fight continues in federal courts, Congress is addressing legislative initiatives to delay the act. H.R. 736 - Protect Small Businesses from Excessive Paperwork Act of 2025 and S. 505 - A bill to amend title 31, United States Code, to modify the deadline for filing beneficial ownership information reports for reporting companies formed or registered before Jan. 1, 2024.
If passed, these bills will delay the act’s implementation for pre-existing entities to Jan. 1, 2026. H.R. 736 was passed by a vote of 408-0 on Feb. 10, and was sent to the Senate Banking, Housing, and Urban Affairs Committee for consideration. A Senate companion bill, S.505, also was introduced.
ACT NOW: Please reach out to your senators to support H.R. 736 and S. 505 via this link and share this important request with your neighbors.
Status of CAI’s CTA Lawsuit
While these lawsuits continue to go through the judicial process, CAI’s lawsuit is still in play. On Sept. 10, 2024, CAI filed a lawsuit against the U.S. Department of Treasury, former Secretary Janet Yellen, and the director of FINCEN challenging the application of the act on community associations. CAI is protecting its members from the burdensome and unnecessary requirements of the act.
On Oct. 24, 2024, CAI’s preliminary injunction request was denied by a federal judge. CAI appealed the court’s denial on Nov. 4, 2024, and on Nov. 12, filed its opening brief of the appeal in the 4th U.S. Circuit Court of Appeals urging a pause on reporting requirements for community associations while this lawsuit is adjudicated. The government responded to CAI’s appeal on Feb. 7, and CAI filed its reply on Feb. 28. We now wait for the next steps from the court.
This is a developing issue. Community association boards should remain vigilant and informed on these ongoing updates.
If you have any questions, please contact CAI’s Government & Public Affairs team at government@caionline.org.
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