Wed Nov 06 20:30:00 UTC 2024: ## Homeowners Associations Face New Reporting Requirements Under Corporate Transparency Act

**Alexandria, VA** – Homeowners Associations (HOAs) across the country are facing a new deadline: December 31st. By this date, they must comply with the Corporate Transparency Act (CTA) and file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FINCEN).

This requirement, confirmed by a recent court ruling (Community Associations v. Yellen, E.D.Va. Case No. 24-CV0-1597), applies to most HOAs, with the exception of those not registered with a secretary of state or recognized by the IRS as tax-exempt organizations. Failure to file by the deadline could result in hefty fines of $500 per day.

The filing process itself isn’t overly complex. HOA board members and officers can obtain individual FINCEN IDs, which are then used to easily file the BOI report online. While manual input of information is possible, obtaining individual IDs streamlines the process and eliminates the need to share sensitive personal data with third-party vendors.

**Important Considerations:**

* **Individual Homeowners:** Unless the HOA is exceptionally small, individual homeowners will not be required to disclose their information.
* **HOA Directors and Officers:** Directors and officers are required to disclose their information in the filing.
* **Updates:** HOAs must file an updated BOI report within 30 days of any changes to their board or officers.

**Warning Against Third-Party Vendors:**

While numerous third-party vendors offer assistance with BOI filings, FINCEN warns against engaging with unknown parties. These vendors may charge fees for a service that can be done for free through FINCEN’s website, and there are concerns about data security and potential scams.

**Resources:**

* **FINCEN BOI Frequently Asked Questions page:** [link to page]
* **FINCEN Contact Web Page:** [link to page]

**Get it Done Early:**

HOA boards are urged to file the BOI report as soon as possible to avoid the potential stress and complications associated with last-minute filing.

Read More