The Federal Corporate Transparency Act (CTA), which took effect January 1, 2024, requires most homeowners, condominium, and other community associations to report information relating to the association and its directors and officers to the Financial Criminal Enforcement Network (FinCEN). Community associations in existence prior to January 1, 2024 must report to FinCEN no later than January 1, 2025 and update FinCEN within thirty (30) days of a change. Failure to report and update information as required may result in penalties. FinCEN accepts e-filed reports at https://boiefiling.fincen.gov.
The CTA aims to combat money laundering, tax fraud, and other illicit activities by persons utilizing legal entities by requiring Reporting Companies to report Beneficial Ownership Information (BOI) to FinCEN. The CTA defines Reporting Companies broadly to include any domestic or foreign entity, which is formed or registered to do business by filing with the secretary of state or similar office under any state law or territory, unless specifically excepted.[1] Reporting Companies may include both for-profit and not-for-profit corporations. Accordingly, Florida condominiums, cooperatives, and homeowners associations formed under Chapters 718, 719, and 720 are Reporting Companies and must comply with the CTA, except in the rare case they qualify as tax exempt under Sec. 501(c)(4) of the Internal Revenue Code or other less likely exceptions set forth in the CTA (see footnote 1 below for complete list). If you are unsure about your condominium, cooperative, or homeowners association’s eligibility for tax-exemption under 501(c)(4) or obligation to report BOI to FinCEN, we recommend you consult with appropriate accountants and legal counsel.
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