On December 3rd, the U.S. District Court for the Eastern District of Texas published a decision in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. issuing a preliminary nationwide injunction against the Corporate Transparency Act essentially blocking the Treasury Department from enforcing the Act’s beneficial ownership information (BOI) reporting requirements.
The Court issued an order prohibiting the enforcement of the Corporate Transparency Act and its Implementing Regulations, ruling that “Neither may be enforced, and reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.”
The Community Association Institute’s national legal team believes the injunction applies to all community associations incorporated within the U.S. Bender, Anderson and Barba, PC agrees with assessment.
However, caution should be the order of the day. This is good news today, but it isn’t the end of the story. The government is sure to appeal the court’s ruling and it will likely ask for a stay of the ruling pending the outcome of that appeal. The thrust of such a move would require HOAs to file their BOI reports as previously ordered. For planning purposes, we suggest that you complete the initial filing. If the District Court’s Order is upheld, there will be no further action needed. If, however, the ruling is reversed, Boards do not want to be caught flat-footed and unprepared to file immediately.
Please continue to watch for messaging about any further developments. We will keep you all advised as the situation evolves.
Bender, Anderson and Barba, PC