BB5 (Missouri)
Posts: 145
Posts: 145
Posted:
How much trouble would a HOA be in if they incorporated in 1993 didn't get an EIN and never filed a tax return. (state of MO.)
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Depends on if you owed tax during any of that time.
It also depends on if the IRS finds out on their own, if the find out because you filed back taxes or if they don't find out at all.
If you owed taxes, (State or Federal) you will likely have penalties associated with it.
If you did not owe taxes, you will likely have no penalties.
I suspect if the IRS finds out because you are now filing all the back taxes, they will just require any interest and penalties the back taxes accrued.
If the IRS finds out on their own, they may hold an audit.
If the IRS never finds out, you are probably in the clear.
It's suspect that it's more typical for he IRS to find out based off of IRS forms filed by others indicating the Association had income (interest from bank accounts, etc.). You also always run the risk of a disgruntled member informing them.
In reality, if you had a bank account, someone received a 1099-int each year. This someone would have been the entity who had their SSN or EIN on the bank account. Therefore, those taxes were likely accounted for (be it correctly or incorrectly).
Personally, if it were me, I'd start now and just work it forward while I prepared for the worst (gathering documents and completing but not filing past tax returns) so I can determine if it's a major or minor issue.
It also depends on if the IRS finds out on their own, if the find out because you filed back taxes or if they don't find out at all.
If you owed taxes, (State or Federal) you will likely have penalties associated with it.
If you did not owe taxes, you will likely have no penalties.
I suspect if the IRS finds out because you are now filing all the back taxes, they will just require any interest and penalties the back taxes accrued.
If the IRS finds out on their own, they may hold an audit.
If the IRS never finds out, you are probably in the clear.
It's suspect that it's more typical for he IRS to find out based off of IRS forms filed by others indicating the Association had income (interest from bank accounts, etc.). You also always run the risk of a disgruntled member informing them.
In reality, if you had a bank account, someone received a 1099-int each year. This someone would have been the entity who had their SSN or EIN on the bank account. Therefore, those taxes were likely accounted for (be it correctly or incorrectly).
Personally, if it were me, I'd start now and just work it forward while I prepared for the worst (gathering documents and completing but not filing past tax returns) so I can determine if it's a major or minor issue.
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