{"id":2138,"date":"2024-12-18T14:48:22","date_gmt":"2024-12-18T19:48:22","guid":{"rendered":"https:\/\/www.bowditch.com\/bowditchrealestateblog\/?p=2138"},"modified":"2024-12-18T14:48:55","modified_gmt":"2024-12-18T19:48:55","slug":"are-unincorporated-condominium-associations-and-condominium-trusts-required-to-comply-with-the-january-1-2025-corporate-transparency-act","status":"publish","type":"post","link":"https:\/\/www.bowditch.com\/bowditchrealestateblog\/2024\/12\/18\/are-unincorporated-condominium-associations-and-condominium-trusts-required-to-comply-with-the-january-1-2025-corporate-transparency-act\/","title":{"rendered":"Are Unincorporated Condominium Associations and Condominium Trusts Required to Comply with the January 1, 2025, Corporate Transparency Act?"},"content":{"rendered":"

In Trustees of the Lewis Wharf Condominium Trust v. Yellen et als<\/em>, U.S. District Court, District of Massachusetts (Boston) 1:24-CV-11679. (\u201cLewis Wharf\u201d), the plaintiffs sought a declaratory ruling as to whether unincorporated condominium associations and certain condominium trusts formed under M.G.L. c. 183A are exempt from Corporate Transparency Act (CTA) reporting requirements.<\/p>\n

On November 22, 2024, the Lewis Wharf<\/em> court dismissed the plaintiffs\u2019 request \u201cpermanent injunction enjoining the Defendants and any other agency or employee acting on behalf of the Defendants from enforcing any provision of the [CTA] against any condominium associations or similar condominium entities\u201d for lack of standing. In consequence, the court did not address the plaintiffs\u2019 request.<\/p>\n

Although not specifically listed within the 23 types of entities that are exempt from the beneficial ownership information reporting requirements, FinCEN\u2019s responses to \u201cFrequently Asked Questions\u201d indicate that \u201c[a] domestic entity such as a statutory trust, business trust, or foundation is a reporting company only if it was created by the filing of a document with a secretary of state or similar office.\u201d<\/p>\n

Ordinarily, \u201c[n]oncompliance with the CTA subjects a person, not the reporting company, to both civil and criminal liability. A person who willfully provides false beneficial ownership information or fails to report such information faces civil penalties of up to $500 per day,\u201d and \u201cmay be fined not more than $10,000, imprisoned for not more than 2 years, or both.\u201d 31 U.S.C. \u00a7 5336(h)(1), (3). Trustees of the Lewis Wharf Condominium Trust v. Yellen et als<\/em>, U.S. District Court, District of Massachusetts (Boston) 1:24-CV-11679. (\u201cLewis Wharf\u201d).<\/p>\n

But as of the December 5, 2024, the nationwide stay in Texas Top Cop Shop, Inc., et al. v. Garland, et al.<\/em>,<\/em> No. 4:24-cv-00478 (E.D. Tex.): (1)\u202fenjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements<\/a>, and, specifically, (2)\u202fstays all deadlines to comply with the CTA\u2019s reporting requirements.<\/p>\n

While reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect, reporting companies may continue to voluntarily submit beneficial ownership information reports to comply with the January 1, 2025 deadline.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

In Trustees of the Lewis Wharf Condominium Trust v. Yellen et als, U.S. District Court, District of Massachusetts (Boston) 1:24-CV-11679. (“Lewis Wharf”), the plaintiffs sought a declaratory ruling as to whether unincorporated condominium associations and certain condominium trusts formed under M.G.L. c. 183A are exempt from Corporate Transparency Act (CTA)…<\/p>\n","protected":false},"author":1,"featured_media":1011,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[490,359],"tags":[648,647,649],"class_list":["post-2138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-condominiums","category-regulations","tag-beneficial-ownership-information","tag-corporate-transparency-act","tag-fincen"],"acf":[],"yoast_head":"\nAre Unincorporated Condominium Associations and Condominium Trusts Required to Comply with the January 1, 2025, Corporate Transparency Act? - Commercial Real Estate Insight & News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bowditch.com\/bowditchrealestateblog\/2024\/12\/18\/are-unincorporated-condominium-associations-and-condominium-trusts-required-to-comply-with-the-january-1-2025-corporate-transparency-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Unincorporated Condominium Associations and Condominium Trusts Required to Comply with the January 1, 2025, Corporate Transparency Act? - Commercial Real Estate Insight & News\" \/>\n<meta property=\"og:description\" content=\"In Trustees of the Lewis Wharf Condominium Trust v. 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