The Corporate Transparency Act is back in the news: What community associations need to know - by Phoebe Neseth

In a unanimous decision on Dec. 16, 2025 the U.S. Court of Appeals for the 11^th Circuit reversed and remanded the US District Court for the Northern District of Alabama’s stay of the Corporate Transparency Act in Nat’l Small Bus. United v. Dep’t of Treasury. (11^th Cir., No. 24-10736, 12/16/25.) This decision lifts the order blocking enforcement of the act issued by the district court in March 2024 that paused all reporting requirements for associations required under the act. CAI is closely monitoring the National Small Business Association’s next steps in this matter.

 In March 2025, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an interim final rule removing requirements for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the act. Due to this interim file rule, and regardless of the update, no filings are required at this time.

Under the interim final rule, FinCEN also revised the definition of “reporting company” in its regulations to mean only those entities formed under the law of a foreign country and registered to do business in any U.S. state or tribal jurisdiction by filing documents with a secretary of state or similar office (formerly known as “foreign reporting companies”). FinCEN also exempted entities previously known as “domestic reporting companies” from BOI reporting requirements.

Through this interim final rule, all entities created in the United States — including those previously known as domestic reporting companies — and their beneficial owners are exempt from the requirement to report BOI to FinCEN.

FinCEN accepted public comments on this interim final rule in spring 2025 and intends to finalize the rule this year.

This interim final rule is interpreted to mean the act and its reporting requirements are no longer in effect for U.S. citizens or domestic reporting companies including all applicable community associations. At this time, CAI is waiting for publication of a final rule by the Treasury Department and is following this court case closely.

Read more about this federal court decision here: https://news.bloombergtax.com/daily-tax-report/corporate-transparency-act-block-lifted-after-trump-rule-shakeup.

Visit CAI’s resources on the Corporate Transparency Act here: https://www.caionline.org/advocacy/advocacy-priorities-overview/corporate-transparency-act/

Phoebe Neseth, Esq. is vice president, government relations, public affairs & legal at CAI New England Chapter.