ABOUT THE AUTHOR Gregory Vinogradsky is a partner with Callahan & Fusco, LLC and focuses on both litigation and general counsel representation of corporations, including community associations, throughout New Jersey, New York and Pennsylvania. He has significant experience litigating matters in both State and Federal Court and his litigation background ranges from premises liability, construction defect, transportation, professional liability, property damage and products liability. Mr. Vinogradsky is a delegate on the New Jersey Legislative Action Committee (NJ LAC). Contact Mr. Vinogradsky via email at:
gvinogradsky@callahanfusco.com
securities exchange or clearing agency, insurance companies, public utilities, accounting firms, tax-exempt organizations as qualified and determined with status by the IRS, i.e. 501c4 organizations, large operating companies, and inactive entities.
CAI’s Federal LAC Addresses the Corporate
Transparency Act In 2021, Congress passed the Corporate Transparency Act. Before you stop reading, this law likely applies to your community association and/or the communities you work with every day. This column post is a bit technical, but please, read on!
The intent of the Corporate Transparency Act is to help detect and report suspicious activity related to money laundering and terrorist finance, to facilitate tracking money that has been sourced through criminal or terrorist activity, and to safeguard national security and the U.S. financial system.
This law applies to corporations; including local non-profit corporations that have less than $5 million in assets, fewer than 20 employees, and don’t otherwise meet broad exemptions like banks, credit unions, investment companies, venture capital,
The consensus by community association lawyers is that community associations incorporated at the state level will be impacted by this new law and will have a responsibility to file information with FINCEN through the Beneficial Ownership Information (BOI) reporting requirements. The Beneficial Ownership Information (BOI) reporting program is slated to be implemented with filings beginning January 1, 2024. It is important to note the filing deadline for existing corporations is January 2025. The filing is not yet open.
At a minimum, here is what a community association will need to report to the FINCEN federal agency on an annual basis. It is expected the filing will be electronic.
Business name
Legal name of board members, birthdate, home address, an identifying number from a driver’s license, state ID, or passport
Identity of the individual with substantial control: The same information (name, birthdate, home address, identifying number) of person(s) who exercise substantial control over financial reporting for the community association corporation. It is currently unclear whether a community manager and/or management company qualifies as an
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