The Corporate Transparency Act has been the subject of some recent legal action taken by CAI in hopes of preventing this Act from impacting over 300,000 associations across the United States from being adversely impacted as of January 1, 2025. The most recent actions taken by the US District Court for the Eastern District of Texas in the matter of Texas Top Cop Shop, Inc et al. v. Garland et al can be found HERE or on the weblink below.
To learn more about what work is being done by CAI regarding the Corporate Transparency Act, please click on the links below to learn more:
UPDATE 12/3/24 – Preliminary Nationwide Injunction Filed in US District Court in Texas
Corporate Transparency Act — Advocacy Priorities Overview
10/2/2024 — CAI Sends White Paper to US Department of Treasury on CTA
Nov 2014 – CAI reports preliminary injunction filed has been denied / CTA Updates and Resources
Please read below on a message crafted by CAI’s Dawn Bauman that was sent out to all CAI members regarding the current status of the steps being taken by CAI in an attempt to exempt associations from having to comply with the CTA requirements, which go into effect on January 1, 2025:
Dear CAI Member:
I want to share an important update that directly impacts your community association or community association clients, and the role CAI plays in protecting their interests.
Key Hearing Held. Today, Oct. 11, the United States District Court in Alexandria, VA held a hearing in Community Associations Institute v. U.S. Department of Treasury. This case is a crucial component in CAI’s fight to exempt community associations from burdensome reporting requirements under the Corporate Transparency Act. A decision surrounding CAI’s request for a preliminary injunction in the case is expected in the coming days or weeks.
CAI Membership Is Essential. Based on an interpretation in a similar case, “association standing” may protect all members of an organization in legal proceedings. If CAI succeeds in securing an exemption, it is very possible it will apply only to CAI members. Joining CAI could protect your association from costly and time-consuming efforts to comply with the act.
The Homeowner Leader Group Membership is an excellent option and value. This category allows up to 15 board members to join under one membership and ensures the entire board is covered. Sign up here: https://link.edgepilot.com/s/be40cab7/-5tqDlA3S0KAiPHeUNLlDg?u=http://www.caionline.org/join.
CAI’s Three-Pronged Approach. CAI has implemented a comprehensive strategy to protect community associations against the act’s burdensome requirements.
Lawsuit. The preliminary injunction would provide temporary relief, potentially delaying the implementation of the act, until the court decides on the full merits of the case. The lawsuit aims to block application of the act for all community associations.
Regulatory Advocacy. During ongoing discussions with the Financial Crimes Enforcement Network and the Treasury Department, CAI continues to assert that community associations do not pose a threat to federal efforts to combat money laundering and terrorist financing.
Legislative Efforts. CAI supports HR 9045, the only legislation in Congress that would exempt community associations from the act.
The current deadline for compliance with the act’s requirements is Jan. 1. CAI will continue to keep members informed as new developments in the case arise.
We look forward to welcoming you and your board to the CAI family.
Best Regards,
Dawn M. Bauman, CAE
Chief Strategy Officer, Community Associations Institute
