Understanding BOI Reporting Requirements for Homeowner Associations (HOA): A Complete Guide

Ensuring compliance with legal regulations can be challenging for homeowners associations (HOAs), especially when it comes to reporting Beneficial Ownership Information (BOI). Under the Corporate Transparency Act, effective January 1, 2024, many HOAs face new requirements to disclose detailed information regarding their beneficial owners.

Whether you’re handling your own BOI reporting or handling your clients’ BOI reporting, understanding these requirements and using the right solution is essential for ensuring compliance. 

In this guide, we’ll break down the essentials of BOI reporting for HOAs and introduce you to practical solutions to streamline the process.

Understanding BOI Reporting

Every small business must submit the Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN), starting from January 1, 2024, under the Corporate Transparency Act (CTA). The BOI report provides comprehensive information about the ownership structure of the reporting company and highlights substantial control over it. A company that meets the definition of reporting its beneficial ownership information is classified as a reporting company. If your Homeowners Association (HOA) meets the criteria of a reporting company, you must submit the BOI report.

Are Homeowners Associations Considered Reporting Companies?

Generally, if your HOA is recognized by the IRS as a section 501(c)(4) social welfare organization, it often qualifies for exemptions from reporting requirements. However, if you do not fall under this tax-exempt category and meet the definition of a reporting company, as formally created by filing with a secretary of state or a similar office, then your HOA should submit the Beneficial Ownership Information (BOI) report to the Financial Crimes Enforcement Network (FinCEN).

Who are the Beneficial Owner(s) of a Homeowners Association?

If you are a homeowners association (HOA) and meet the reporting company definition and don’t qualify for any exemptions, you must report your beneficial owner(s). A beneficial owner is any individual who, directly or indirectly, has substantial control over the reporting company or owns or controls at least 25% of its ownership interests. In some cases, an HOA that qualifies as a reporting company might not have any individuals who meet the 25% ownership threshold.

However, FinCEN requires that at least one individual must exercise substantial control over the reporting company. This includes:

• Senior officers – Individuals holding the key position like senior officers within the HOA
• Authority over Officers – Individuals having the authority to appoint or remove officers or a majority of directors of the HOA
• Decision Makers – Individuals who play a significant role in the important decision-making process
• Other Forms of Controls – Individuals who have any other form of substantial control over the HOA

 When is the Deadline for BOI reporting?

The key deadlines for filing BOI under the CTA:

• The company established or registered before January 1, 2024 – Must submit the BOI report by January 1, 2025
• The company established or registered on or after January 1, 2024 – Must submit the BOI report within 90 days from the effective registration
• The company established or registered after January 1, 2025 – Must submit the BOI report within 30 days from the effective registration

Streamlining BOI Reporting for Your Clients with TaxBandits

If you’re a Homeowner Association (HOA), managing your Beneficial Ownership Information (BOI) Report, as well as your clients’ BOI reports, is essential. Filing a Beneficial Ownership Information Report is a critical part of tax compliance, and using trusted and authorized e-filing software can make your reporting process much more efficient. TaxBandits provides various solutions to help you manage BOI filings for your clients.

• White Label Solution: Customize the TaxBandits platform with your branding to deliver a professional experience for your clients. This feature helps you maintain your brand identity while offering top-quality BOI reporting services.

• API Integration: Seamlessly integrate TaxBandits’ API with your existing systems to automate the BOI reporting process. This integration ensures data accuracy, streamlines reporting tasks, and enhances the efficiency of your client services.

• BanditConnect: Use BanditConnect (client portal) to gather and verify information from your clients securely. You can customize every aspect of the portal right from the brand logo, URL, and template to reflect your brand. This approach not only helps in collecting all necessary data for BOI reporting accurately but also strengthens your brand’s reputation for reliability and efficiency. By using TaxBandits, you can provide exceptional service while showcasing your commitment to client satisfaction.

• BanditCollab: Utilize BanditCollab to streamline your workflow with your team members. Our software allows you to add team members and assign specific roles, including preparer, approver, and transmitter. You can set access levels in the report so your clients can view only the designated reporting pages. This approach improves productivity by facilitating clear communication with your team, effective task management, and seamless data sharing within your teams.

Bottom Line

Understanding and managing BOI reporting is crucial for homeowners associations to meet reporting requirements and maintain compliance. This guide has outlined the key aspects of BOI reporting, including who needs to file, who qualifies as a beneficial owner, and how to determine if your HOA is a reporting company. 

We’ve also highlighted how TaxBandits can simplify the reporting process through its innovative solutions—White Label Solution, API Integration, BanditConnect, and BanditCollab. By utilizing these solutions, you can ensure accurate and efficient BOI reporting while enhancing your service to clients. TaxBandits offers the support and technology you need to stay ahead in compliance and provide exceptional service.

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