Corporate Transparency Act: Reporting Requirements End for Community Associations

Community association board members no longer must report personal information to the federal government under the Corporate Transparency Act. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued a final rule Aug. 11 permanently removing beneficial ownership information reporting requirements for U.S. companies and individuals. The rule takes effect when it is published in the Federal Register.

FinCEN also announced that it will establish a process to delete information previously reported by U.S. persons, including community association board members, from its beneficial ownership information database. The agency’s final rule follows a 2025 interim rule that had temporarily lifted the reporting obligation.

What the final rule means

For most community associations, the practical takeaway is straightforward: Boards do not need to file beneficial ownership reports or update information already submitted to FinCEN. The change removes a compliance burden that had raised privacy concerns for volunteer leaders.

Under the final rule:

• U.S. companies and individuals, including community association board members, are permanently exempt from beneficial ownership information reporting requirements.
• Individuals with FinCEN identifiers do not need to update or correct information they previously provided.
• FinCEN will create a process to delete previously reported information.
• Certain foreign entities registered to do business in the U.S. remain subject to reporting requirements.

The law remains on the books

The final rule changes how the Corporate Transparency Act is applied; it does not repeal the law. Congress would need to act to remove the statute entirely.

Rep. Warren Davidson of Ohio introduced H.R. 425, the Repealing Big Brother Overreach Act, in 2025. The bill would repeal the Corporate Transparency Act. In April, the House Financial Services Committee approved an amended version that also would require FinCEN to delete certain beneficial ownership data within 90 days of enactment. The measure awaits consideration by the full House, and CAI continues to urge advocates to support the legislation.

How CAI advocated for community associations

CAI has urged federal officials to exempt community associations and their volunteer leaders since the reporting requirements were introduced. CAI engaged policymakers, submitted regulatory comments, mobilized advocates, and educated community association leaders and professionals about the evolving rules.

In September 2024, CAI also filed a federal lawsuit challenging application of the act to community associations. CAI argued that volunteer board members were unintentionally swept into a law designed to combat money laundering and other illicit financial activity.

>>Learn more about CAI’s Corporate Transparency Act advocacy efforts.

Published: Aug. 13, 2026