STEP I - As a board member, what do I need to know about the Corporate Transparency Act (CTA)?
Dear Board of Directors,
As you may be aware, the Corporate Transparency Act (CTA) is a federal law that went into effect on January 1, 2024. The purpose of CTA aims to prevent financial crimes by requiring businesses to disclose information about its owners. In doing so, the CTA requires certain businesses to file a Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN). The BOIR provides information to FinCEN about individuals who control the business.
At this time, homeowners associations are not exempt from the BOI reporting requirements. Instead, HOAs are required to submit information about their respective Board members, and failure to do so may result in civil penalties of $591 per day of a continued violation, and a criminal penalty of up to two years in prison, fines up to $10,000, or both.
Community Associations Institute (CAI) is an international organization that provides information, education and resources to Board members and professional companies that manage and support them. On September 10, 2024, CAI filed a lawsuit against the US Department of Treasury and the director of FinCEN to challenge the application of CTA on community associations. Unfortunately, CTA requires that all corporations submit BOI reporting by December 31, 2024, and the lawsuit is still ongoing. Given that the CAI lawsuit is still pending, it is strongly recommended that you comply with the BOI reporting requirements by submitting your Board member information in compliance with CTA.
Miller Harrison is helping the communities that Blooming Property Management manages to complete their BOI reporting for a flat fee of $300. If you are currently a board member please compile and submit the required information requested below in Step II. Please note that we will need all the required information before the BOI can be completed. Be advised that there are penalties associated with providing false information. As such,your HOA shall indemnify and hold harmless Miller Harrison for any false information that may be provided as part of the BOIR.
FOR QUESTIONS CONTACT
MILLER HARRIS - Miriam Leany-Kalubi - miriam@millerharrisonlaw.com
BLOOMING PROPERTY MANAGEMENT - Michael Kirklen - mike@bloomingpc.com
