As you may already know, Corporate Transparency Act went into effect on January 1, 2024. The Corporate Transparency Act requires community associations to file a Company Report and Beneficial Ownership Information (BOI Report) with the FinCEN (Financial Crimes Enforcement Network). For a community association to comply with the Act, each of its directors must provide certain information and documentation concerning their identity. Penalties can be levied if a community association’s board members fail to comply with the reporting requirements. Considering that penalties are as steep as $500/day, it is imperative that associations adopt certain policies and procedures to avoid liability and the imposition of penalties.
One way an association can protect itself is to formally adopt a corporate resolution, requiring board candidates and directors to provide the information required by the Act, while also addressing the consequences in the event they fail to do so.
If you are interested in having us prepare a resolution to assist your association in avoiding liability for failure to comply with the Corporate Transparency Act, please contact Ari Meza at ameza@csrlawfirm.com.
This article is being provided for informational purposes only. This article does not constitute legal advice on the part of Costello Sury & Rooney. or any of its attorneys. No association, board member or any other individual or entity should rely on this article as a basis for any action or actions. If you would like legal advice regarding any of the topics discussed in this article and/or recommended procedures for your association going forward, please contact our office.