DarleneH2 (Oklahoma)
Posts: 3
Posts: 3
Posted:
Are Oklahoma Property Owners Associations REQUIRED to have a tax ID or is it dependent on the size of the POA and number of homes in it?
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Tax ID required for POA in Oklahoma?
Started by DarleneH2 • 6 replies • 832 views
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TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
They are required to have an EIN (employer identification number) to have bank accounts.
They are required to have an EIN to file taxes
They are required to have an EIN to provide W-2s or 1099s
If there are no assessments and no bills, then there would be no need for an EIN.
Note: New Developments may be filing taxes as the Declarant (developer/builder) and not as the Association. In those circumstances the Declarant's EIN would be used and the Association would obtain their own EIN once the Association is turned over. This is not the best way to do things but it is how things are sometimes done.
They are required to have an EIN to file taxes
They are required to have an EIN to provide W-2s or 1099s
If there are no assessments and no bills, then there would be no need for an EIN.
Note: New Developments may be filing taxes as the Declarant (developer/builder) and not as the Association. In those circumstances the Declarant's EIN would be used and the Association would obtain their own EIN once the Association is turned over. This is not the best way to do things but it is how things are sometimes done.
DarleneH2 (Oklahoma)
Posts: 3
Posts: 3
Posted:
I think you have misunderstood my question. Our POA isn't a business. No one to send 1099's or W-2's too. Bank acct has been open for years and was most likely opened w/SS, that info will be confirmed later this week.
CjC
Posts: 210
Posts: 210
Posted:
Does your HOA charge dues? It is taking in income and needs to file taxes. Then it needs an EIN. You can check online to see if it has one.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Quote:
Posted By DarleneH2 on 03/07/2018 8:11 AM
I think you have misunderstood my question. Our POA isn't a business. No one to send 1099's or W-2's too. Bank acct has been open for years and was most likely opened w/SS, that info will be confirmed later this week.
I think you have misunderstood my question. Our POA isn't a business. No one to send 1099's or W-2's too. Bank acct has been open for years and was most likely opened w/SS, that info will be confirmed later this week.
If the bank account was opened with a personal SSN, that is a big issue for the Association and that individual. Technically, the money belongs to them.
The POA is a business (just as all HOAs, COAs, etc. are). Most Associations don't issue W-2s because they don't have employees. Many Associations issue 1099's for various reasons (forgiveness of debt, paying independent contractors like bookkeepers, CPAs, etc., and legal expenses in excess of $600).
The Association may or may not be incorporated.
The Association should be filing taxes each year (1120-H or 1120 for Federal).
DouglasK1 (Florida)
Posts: 2,046
Posts: 2,046
Posted:
Quote:
Posted By TimB4 on 03/07/2018 3:00 PM
Posted By DarleneH2 on 03/07/2018 8:11 AM
I think you have misunderstood my question. Our POA isn't a business. No one to send 1099's or W-2's too. Bank acct has been open for years and was most likely opened w/SS, that info will be confirmed later this week.
I think you have misunderstood my question. Our POA isn't a business. No one to send 1099's or W-2's too. Bank acct has been open for years and was most likely opened w/SS, that info will be confirmed later this week.
Many Associations issue 1099's for various reasons (forgiveness of debt, paying independent contractors like bookkeepers, CPAs, etc., and legal expenses in excess of $600).
To expand on this one, my understanding is that the association needs to send a 1099 to any non-incorporated entities that they pay over $600 during the course of a year for services and some other categories. LLCs are not considered corporations for this purpose so need to get a 1099. Tim didn't mention lawn care or other maintenance providers, but if they are not an "inc" and you pay them over $600, you are supposed to send a 1099.
Escaped former treasurer and director of a self managed association.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Doug is correct with his additional info.
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