Bills are pending before both the House of Representatives and the Senate that, if passed, could impact whether community associations must comply with the Beneficial Owner Information Reporting (BOIR) requirement of the Corporate Transparency Act (CTA).
House Bill H.R. 9046 – Community Association Reporting Exemption Act – seeks to amend Title 31 of the United States Code to add any entity subject to taxation under Section 528 of the Internal Revenue Code of 1986 (IRC) to the list of entities that are exempt from the CTA BOIR requirement. Homeowners associations (as that term is specifically defined in Section 528) are entities subject to taxation under Section 528, and therefore if this bill becomes law, homeowners associations that meet the requirements of Section 528 and are subject to taxation under Section 528 would be exempt from the BOIR requirement.
Senate Bill S. 3625 – Protect Small Business and Prevent Illicit Financial Activity Act – also seeks to amend Title 31 of the United States Code by removing language requiring small businesses to submit their BOIR “in a timely manner,” and by adding language that would prevent the Financial Crimes Enforcement Network (FinCen) from creating a rule or providing guidance that would permit submission of a report relating to a company’s inability to obtain or identify Beneficial Ownership Information for the company in lieu of filing a complete BOIR. Note that this bill does not seek to exempt community associations from the CTA BOIR requirement, and it does extend the deadline by which small businesses must file their BOIR.
Neither bill has progressed farther than its first committee assignment. H.R. 9046 was introduced in July of 2024, and S. 3625 in January of 2024. To help move these bills along, Community Associations Institute has created webpage from which you can contact your representatives and senators about these bills: https://www.votervoice.net/CAI/Campaigns/116499/Respond.
We will continue to monitor these two bills, as well as CAI’s lawsuit challenging the CTA’s applicability to community associations, and continue to provide updates on this topic. We also offer a program to assist community associations and other corporate entities with their BOIR filing requirement, which must be complete by January 1, 2025. If you have any questions about the CTA and the BOIR filing requirement, or if you would like assistance with your filing, please reach out to Andrea Rizen at moc.w1760186170albdh1760186170c@nez1760186170ir.ae1760186170rdna1760186170.
The information contained in this article is not intended to be legal advice and is provided for educational purposes only.
