Community associations may finally be saved from filing BOI reports under the Corporate Transparency Act.
We are glad to announce that on March 2, 2025, the U.S. Treasury Department has determined “…with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.”
Since Michigan community associations are not foreign companies, this announcement protects them from penalties for not filing a report.
Please note that the Treasury Department may adopt a new policy in the future, so as long as the federal Corporate Transparency Act remains in its current form, there is still a chance that it may be revived. We are hopeful that future legislation will provide community associations a permanent exemption from Beneficial Ownership Interest filing requirements.
Follow this link to read the Treasury’s press release.
Reprinted with permission from MAGWV – Condominium & HOA Lawyers, Michigan