Congressman McCormick Introduces H.R. 9045, Community Association Reporting Exemption Act
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WASHINGTON, D.C. - Congressman McCormick authors H.R. 9045 to amend the Corporate Transparency Act (CTA) that would exempt Community Associations and Homeowner's Associations (HOAs) from burdensome reporting requirements.
The CTA, enacted into law as part of the Anti-Money Laundering Act of 2020, requires corporations and entities to report beneficial ownership information to the U.S. Department of the Treasury's Financial Crimes Enforcement Network. However, a recent court ruling exempted the National Small Business Association from these requirements, leaving Community Associations and HOAs vulnerable to costly compliance services.
In response to this issue, Congressman McCormick stated, "The burden of compliance with the Corporate Transparency Act should not fall on Community Associations and Homeowner's Associations, ultimately impacting homeowners. We must take action to protect these organizations from unnecessary bureaucratic burdens, costs, and penalties."
The proposed legislation would add Community Associations and HOAs to the list of entities exempt from reporting requirements under the CTA, providing relief to approximately 350,000 community associations across the United States. |
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