Great News about the Corporate Transparency Act: It No Longer Applies to Indiana Community Associations!

By Tom Murray

On March 2, 2025, the U.S. Treasury Department issued this press release concerning the Corporate Transparency Act (the “CTA”):

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

So what does this mean?

Board members of Indiana homeowners associations and condominium associations no longer are required to file “Beneficial Owner Interest” reports with the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). This will come as a great relief to many HOA volunteer Board members who were skeptical about the need to file reports that contain personal information, especially when the focus of FinCEN was to uncover money laundering schemes and terrorist activities, especially for high-risk, foreign entities.

Is this final?

How’s this for an attorney’s answer?! “Maybe.” However, presently, there is no requirement to file the BOI reports.

Even if the Treasury Department does what it suggests in the above press release, the language of the CTA requires all entities to report, not just foreign entities. If challenged in the courts, it is unclear whether the judiciary would uphold the Treasury Department’s position.

The law is everchanging and we will provide updates if and when changes occur that affect the obligations of homeowners associations and condominium associations.

If you would like to discuss these or other issues with our firm, please contact one of our firm’s attorneys directly or email us through the firm’s website at info@IndianaHOALaw.com