TIN

Started by WendyS4 • 11 replies • 4456 views

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WendyS4 (Michigan)
Posts: 2

Posted:

We are a small HOA. We bring in $2880 a year in dues and most of it gets paid right back for entrance landscaping maintenance and electricity for the entrance lighting. Are we required to have a Tax ID number? We have been an established HOA since 1995 and have never had one. We are being asked to supply one from a bank that owns a foreclosed home in our neighborhood. What do we do?

SueW6 (Michigan)
Posts: 814

Posted:

I think you mean EIN and yes, you should have filed for one. I am surprised that the bank let you open an account without one.

You can get an EIN on-line. Simply google "How to file for EIN"

Are you incorporated? You must have an EIN to incorporate. If you are going to enter into legal conflicts, your HOA should be an Inc. You also need board liability insurance.

TimB4 (Tennessee)
Posts: 21,062

Posted:

A TIN is effectively the Associations SSN.
It would be used to establish the Associations bank account and for filing taxes.

Your Association would actually apply for an EIN (employer identification number)

See:
IRS page Employer ID Numbers (EINs) for general information.
IRS page Apply for an Employer Identification Number (EIN) Online to apply

Question:

Do you have a bank account? This should be under the Associations EIN. If it is not, it needs to change.

Tim

LarryB13 (Arizona)
Posts: 4,099

Posted:

The last time I had to apply for an EIN was about 7 years ago. My recollection is that I was able to do it over the phone with someone at IRS. I had the EIN in about 15 minutes and IRS sent a confirmation by mail. It was quick and painless and only has to be done one time.

RichardP13 (California)
Posts: 1,767

Posted:

It can be done on the IRS website now.

LynneV1 (South Carolina)
Posts: 211

Posted:

go to WWW.IRS.GOV

No need to file a Form SS-4! They ask you the questions and you give the answers. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice.

btw - I believe that 'TIN' is a Taxpayer ID Number and is often given out to illegal aliens that live in the US and want to file a tax return on wages earned in the US or do banking,etc. while businesses get EIN's and legal alien and citizens get SSN's.

JenniferL6 (Illinois)
Posts: 11

Posted:

Not relevant to the OP, but legal immigrants who are here legally but aren't authorized to work get TINs too (some spouses, children can come here but not work on certain visa categories).

WendyS4 (Michigan)
Posts: 2

Posted:

Thanks for the info everyone! A few more questions. By applying for an EIN will that require us to file a tax return every year? Is there a set amount we have to bring in or we file no matter what?

TimB4 (Tennessee)
Posts: 21,062

Posted:

The fact that the Association exists requires you to file taxes every year.
An EIN will allow the IRS to more easily track if you actually filed.

Associations typically are allowed to file form 1120-H

1120-H allows you to exclude Assessment payments when calculating how much tax to pay. Here are the links:

IRS page: Form 1120-H, U.S. Income Tax Return for Homeowners Associations
IRS page: 1120-H instructions for 2011
IRS form 1120-H for 2011

Hope it helps,

Tim

TimB4 (Tennessee)
Posts: 21,062

Posted:

I'll add that because we are a small Association and interest rates have been so low lately, for the past two years we have not had to pay any taxes (but were still required to file a tax return)

SamM2 (California)
Posts: 1

Posted:

Employer Identification Number (EIN) is a Tax ID number issued by the IRS to identify a business.

You can use an EIN to start a business, open a bank account, hire employees, and file taxes.
https://mollaeilaw.com/blog/ein-number-cost/

GeorgeS21 (Florida)
Posts: 3,808

Posted:

2012 post.

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