- Community Associations, Legal Updates
- Wisconsin, Indiana, Illinois, Florida
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule on August 11, 2026, that removes beneficial ownership information (BOI) reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act (CTA). The rule provides important finality for condominium, homeowner (HOA), and townhome community associations and their board members following several years of changing reporting requirements, litigation, and regulatory developments.
The final rule has been submitted for publication in the Federal Register and will become effective upon publication.
The FinCEN press release and final rule can be found here: https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions
What is the Corporate Transparency Act?
Congress enacted the Corporate Transparency Act in 2021 as part of the Anti-Money Laundering Act of 2020. The CTA was intended to increase corporate transparency and assist federal authorities in combating money laundering, terrorism financing, tax fraud, and other illicit activities involving anonymous or shell companies.
FinCEN subsequently adopted regulations implementing the CTA that took effect on January 1, 2024. Those regulations originally required many corporations, limited liability companies, and other entities created or registered in the United States to submit reports identifying their beneficial owners. The required information generally included personal identifying information regarding individuals who owned or exercised substantial control over a reporting company.
For many community associations organized as nonprofit corporations, the CTA created potential reporting obligations for volunteer board members because directors could be considered individuals exercising substantial control over the association. Implementation of the CTA was subsequently complicated by multiple lawsuits, court orders, changes to reporting deadlines, and federal regulatory action.
FinCEN Previously Suspended Reporting for U.S. Companies
In March 2025, the Treasury Department announced that it would suspend enforcement of the CTA against U.S. citizens and domestic reporting companies.
FinCEN followed by issuing an interim final rule on March 26, 2025, that substantially narrowed the CTA’s reporting requirements. Under that interim rule, entities created in the United States—previously referred to as “domestic reporting companies”—were exempt from filing initial BOI reports and from updating or correcting reports that had already been filed.
As a result, U.S. community associations and their board members were no longer required to submit BOI reports to FinCEN.
What Does FinCEN’s Final Rule Mean for Community Associations?
For most U.S. community associations and their volunteer board members, the practical result means there is no current requirement to file, update, or correct beneficial ownership information with FinCEN under the CTA.
Additionally, many community associations and board members submitted BOI reports before the federal government changed its enforcement and reporting requirements. The August 11, 2026 final rule states that it intends to implement a process to delete BOI that it reasonably believes was previously reported by U.S. persons who are now exempt from reporting requirements. According to FinCEN, this deletion process will apply to BOI stored in its database and will include information associated with U.S. persons who previously submitted information as beneficial owners or company applicants.
Community association board members who previously obtained a FinCEN identifier also do not have an obligation to update or correct the personal information they provided in connection with obtaining that identifier.
Legal Resource
While the Corporate Transparency Act remains part of federal law, its current implementing regulations no longer impose BOI reporting obligations on U.S. community associations or their U.S. board members. While repealing the CTA itself would require congressional action, the August 2026 final rule effectively closes the chapter on the BOI reporting obligations that generated significant compliance concerns for associations and volunteer board members beginning in 2024.
Questions about Federal, state, and local legal updates impacting your community association?
Please call 855-537-0500 or visit www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
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