Tax filing for HOA

I have recently taken over our HOA as President and found we have never filed taxes. We are a very small HOA with a very small budget (10 built homes of a proposed 30 home lot total) We took over the HOA after the builder/developer we under. We file our HOA with the Secretary of State (Georgia) each year. My question is are we obligated to file? I have many more questions so thanks in advance for the help…

Greg,

I expect that you have an EIN (employer identification number) as this is the number you would use for your Associations Bank Account.

Since you file annual reports with your State, I am of the expectation that you are incorporated. Corporations are required to file taxes every year (even if they have no income). Start with this years filing and get it done on time.

Most Associations use form 1120-H. Here are some links:

Form 1120-H

1120-H instructions

Some use form 1120. Here are those links:

Form 1120

Form 1120 Instructions

Note, Corporations must file tax forms or an extension by March 15.

Once you have this years filing done, you can work on the other years.

Hope this helps,

Tim

Greg - if you are as small as you say, you may be under the radar as far as issues with filing, etc.

Get with a CPA versed in HOA filings and find out.

here is an AI letter to sesnd to IRS
[Your HOA Letterhead]
Southbridge Forest Homeowners Association
[HOA Address]
Charlotte, NC 28278
[Date]

Internal Revenue Service
[Address – use the one for your state for Form 1120 filings]

Subject: Request for Penalty Abatement Due to Reasonable Cause
EIN: [HOA’s EIN]
Tax Years: [List tax years, e.g., 2015–2024]

To Whom It May Concern,

We are writing on behalf of the abc Homeowners Association to submit delinquent federal income tax returns (Forms 1120) for the years [insert years], and to respectfully request abatement of any late filing penalties due to reasonable cause.

ABC HOA is a small, volunteer-run residential homeowners association responsible for maintaining common property and managing member dues. Our annual income consists solely of assessments from homeowners, and all funds are used exclusively for property maintenance, insurance, and other qualifying expenses. We did not generate any taxable income beyond member dues and did not realize the requirement to file Form 1120 or make a timely election for Form 1120-H.

The failure to file was not due to willful neglect, but rather due to a misunderstanding of our tax filing obligations and a complete turnover in board membership over the past decade. Once we became aware of the issue, we took immediate steps to correct it, including consulting a tax professional and preparing the necessary back returns.

We respectfully request that the IRS accept our late-filed Forms 1120 for the applicable years and consider abating any late-filing penalties in light of the association’s nonprofit nature, volunteer management, and lack of taxable income.

We appreciate your consideration and are committed to maintaining compliance going forward. Please do not hesitate to contact us at [phone number or email] if additional information is required.

Sincerely,

Thanks for the info and I can start a new thread if needed. I'm new to this forum and was searching and found this topic. Curious, did you have to pay any taxes with the 1120? My understanding is that with 1120, the surplus is taxable. We don't have a ton of surplus, but have been trying to build a small reserve. With 1120-H that isn't taxable.

BethB4, I ask this because there are significant, tax law caveats here.

done and thanks!