Board received a new federal ID number

The first part of our community was built in 1958 and the last part of our community was built in 1996. We have 10 subdivisions in our association and only Articles of Incorporation for subdivision one and an amendment to add subdivision 2. The board runs the community like one association but with lots of problems because when we voted to be one association it was voted down. The Articles of Incorporation state (The term of corporation existence is thirty (30) years) making these documents null and void. Right? None of the other subdivisions were amended to the documents. The argument is always why I am paying for maintenance in another subdivision. We have canal lots and some canals need more dredging while the subdivisions closer to the lake need no dredging. Of course the lots on the lake pay hirer taxes and no one chips in for that. The board has made lots of mistakes and is very secretive and won't show the books and records. Well you all know how most of these boards are run. Anyway members have been questioning where some of the money had been spend and recently we found out that the board received a new federal ID number. So am I to assume that if they get a new Federal ID number that this is like setting up a whole new corporation? I will guess this sneaky move is to erase the sins of the past because they never filed for taxes after being repeatedly told to and only ignored the people that wanted to do the right thing. This same board has gone out of their way to keep only their group on the board. They are all complainers of being on the board but will not step down and will do anything to keep control. My question is: What reasoning could they possibly have for applying for a new fed number? Is there any benefits to this? Thank you all for your responses.

Did the name change? You can get an EIN (Federal ID number) if the name is valid, so it had to have been checked for duplication. Most likely, the corporation status lapsed and they just applied for a new Fed. ID number.

BTW, Will - a 501(c)(3) is a CHARITABLE non profit, according to the IRS. HOAs are never a charity.
There are other 501s that cover community associations, 501c4 for one.

SusanW, that is true now,however back in 1958 the code was different. They might be listed differently. Our association also receives a state sale tax exemption that was "grandfathered" in. The codes change if I'm not mistaken back in 1976. That is why she will need to see how they where formed and under what Public Act. The Summer resort Act and Non-profit act are totally different.

CarolD2, Check all your documents, because you state that there was a 30 year time frame in your post, that leads me to believe that your association "may" have been formed under the "Summer resort Act(230 of 1897)" If so your association by have been considered dissolve if no filings where made as you claim with the IRS and possible the State. If so, then a new Tax Id may have been issued, however, please read the Attorney General Frank Kelly's opinion and the PA above. There was a 30 year time frame on Summer Resorts and if not voted on by the membership to renew "may have" dissolved the association. Summer resorts are very different from Non-profits. See the Michigan Bar article on Summer Resorts.

Donna & Susan, I am not saying that Carol's a 501c3, but that when her association was formed it may have been under the Summer Resort act,not the Non-profit act. Have you or Susan looked that up? Here in Michigan there are Summer resorts,which, when they where formed where done so under a completely different set of laws. Pa 137 0f 1929, and the one mentioned earlier. That could explain why the board needed to get a new number. I am not suggesting that they file under a 501c3 just that they might have been. Carol states that her association had not been filing with the IRS. Look up Summer Resorts Act for Michigan and you'll be enlighten as to what they are. A summer resort is in essences it's own government, and only had a thirty year span afterwards they had to renew their status. Michigan has both the Non-profit Act and the Summer Resort act. A summer resort rules are nothing like a HOA.

PA 137 of 1929
Google Summer resort act Opinion of the Attorney General Frank Kelly.

No Hoa or POA are a 501c3. Please read Carol post again she is asking why!

The Articles of Incorporation state for the purpose of forming a non-profit corporation under the provisions of Act No. 327 of the Public Act of 1931. I believe this act now is Act 162 of 182. The Articles of Incorporation say... The term of the corporate existence is thirty (30) years. The corporation was formed in 1959. This Association has never ever filed for taxes even though they bought and sold stocks with the money and had thousands of dollars in interest and all sorts of money market funds and were told repeatedly to file for taxes. Now the homeowners are putting the pressure on the Board and now they know someone is watching them and they are starting to worry. I heard that if you never filed with the IRS you are not considered a non-profit. We heard from a homeowner in another Michigan Community that this same thing happened to their community and now it is volunteer only. Could this be in fact true? Plus lets not forget that the other subdivisions were never amended to the Articles of Incorporation and the Deed specifically says that each subdivision when three fourths are completed can vote to join another association. This never happened with the other subs. The homeowners voted it down but the Board will sue you if you don't participate. Thank you for all your comments. Carol