Taxes for Non Profit HOA

Started by TomW21 • 5 replies • 700 views

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TomW21 (Louisiana)
Posts: 6

Posted:

I'm just learning that my HOA has not filed taxes probably since its existence in 1985. Should I see a CPA to straighten out the mess?
It's a small HOA with only 28 property owners but I know we still have to file. Thank you in advance.

NigelB (Texas)
Posts: 254

Posted:

Yes.

The HOA should probably have been filing IRS Form 1120H.

While the failure to file might be problematic it might also be a problem that can be easily remedied. Most filers of the 1120H do not have any tax liability as the assessments are not taxable. The only things that are taxable would be interest received or investment income.

The IRS can issue penalties for failure to file, but I believe the penalties are assessed based on the tax that was due.

A CPA can provide a much better answer than I though

DouglasK1 (Florida)
Posts: 2,046

Posted:

To add to Nigel's point, if you file 1120H the first $100 of non-dues income is exempt. Do you have a large amount of non-dues income?

Escaped former treasurer and director of a self managed association.

TomW21 (Louisiana)
Posts: 6

Posted:

we don't have any non-dues income to speak of...

DouglasK1 (Florida)
Posts: 2,046

Posted:

For us it's only interest on our bank accounts which currently is under $100 a year. If I were in your situation, I think I would just start filing going forward.

Escaped former treasurer and director of a self managed association.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By DouglasK1 on 05/04/2018 11:18 AM
For us it's only interest on our bank accounts which currently is under $100 a year. If I were in your situation, I think I would just start filing going forward.

I agree and deal with any fall out at a later time.

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