Articles

Client Alert: Breaking News: FinCen Final Rule Ends Corporate Transparency Act’s BOI Reporting Requirements

Date: August 17, 2026
In 2024, common interest communities lived under the almost daily shift in reporting requirements by board members under the Corporate Transparency Act (the “CTA”). FinCen, a branch of the Department of the Treasury, administered the CTA, of which not a few directors, and volunteers no less, were wary. Lawsuits ensued and the constitutionality of the CTA was never quite agreed upon by the federal courts across the country. The resulting jumble of court opinions that enjoined and un-enjoined, if that’s even a word, the enforcement of the CTA certainly caused a legal whiplash unparalleled in recent memory.

Mercifully, on March 26, 2025, the perpetual watch on whether the directors of a board must report or not ended, albeit temporarily. FinCen at that time exempted from the CTA all "domestic reporting companies," including every incorporated common interest community in our great country. Following that interim rule, boards no longer needed to report themselves in order to comply with the CTA, or update or correct any information about themselves that they already reported. You probably have not heard much, if anything, about the CTA since.

Now, FinCEN has made final the exemption from the CTA of all "domestic reporting companies" to include, thankfully, every incorporated common interest community. And that’s it. No need to report or update anything already filed to capture, for example, a change of one director on a board. You remain free to check with your association’s legal counsel, of course, but the need for directors on common interest community boards to worry about the CTA is officially at an end.  

Whiteford will continue to monitor developments affecting common interest communities. Please contact our Community Associations Practice Group with any questions about how these changes may affect your operations.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.