Quote:
Posted By JenniferL6 on 09/12/2012 2:36 PM
So I've recently discovered that our HOA has not filed taxes, ever, since it's inception in 2006, and although I know we now need to do it, I'm unsure how to file for prior years. We don't have the funds for a CPA, at least not if we're looking at back taxes and fines too.
I don't think we need to file form 1024, as we don't qualify because we do take care of exterior maintenance. Can I even file form 1120-H so late after the filing deadline or do I have to use form 1120?
You should be able to file Form 1120-H.
First, you should have an EIN. If you don't have one, apply to the IRS for one. Then, simply complete a Form 1120-H for each year. As long as you can show you qualify to use Form 1120-H, and as long as you have no tax liability, there should be no penalty.
You can also try simply to file a form 1120-H for 2011 and see where that gets you. The IRS will let you know if it wants returns for prior years.
Here are the requirements to file Form 1120-H:
60% or more of your income must be exempt function income (association assessments, or dues).
90% or more of your annual budget must be related to maintaining your "real estate." (lawn care, property management, insurance, etc.)
Then, none of your exempt function is taxable. Only your non-exempt function income (if any) is taxable, after a $100 standard deduction and expenses related to making your exempt function income.
No taxes due = no fines or penalties.
