Federal HOA tax

hi
I become treasurer of our 70ish house community HOA last year - I was told to file the form exactly how we had before. I did this and showed no tax owed and then a month or so late we get a bill from the IRS for approx $30. I looked deeper into the files and this is a regular occurrence, apparently no one has ever tried to figure it out because its only like $3 in penalties. However I don't routinely visit the mailbox nor is it convenient for me...so I'd rather not go through this ordeal again

is there anyone who can share insight, the only things we have are dues ~$11k and then expenses ~$7.5k which are all repairs, maint, insurance, electric, & mowing

I'm guessing that something should be showing up in "Gross Income" but it doesn't seem appropriate for dues and the interest in miniscule.

Roger's instructions should get you going, did you file Form 1120-H or some other form? Roger gave the details, but to simplify, dues income is generally exempt from taxes as long as most of it is used towards running the association.

Income other than dues is generally taxable at 30%, but you get an exemption on the first $100 of that income. Most likely, you are getting a 1099 form from somewhere (possibly from your bank for interest on your reserve accounts) for around $200. Since the first $100 is exempt, the IRS is billing you 30% of the remaining $100.

If you are going to fill out your tax form yourself rather than have it done professionally, you need to follow Roger's advice to read and understand the instructions, rather than just fill the form out incorrectly because that's how it's been done in the past.