Board members tell me that our Association doesn't file with the IRS

Started by GuyM1 • 9 replies • 694 views

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GuyM1 (Ohio)
Posts: 318

Posted:

Well, I thought that we had to file with the IRS every year but was told by the other two board members we don't need to file anything. Well, I looked through all the files and can't find anything on any kind of filings. Only thing I find is when we became a Nonprofit Corporation. I'm I wrong that we should be filing 1120-H every year?

Thanks,
Guy

TimB4 (Tennessee)
Posts: 21,059

Posted:

You are not wrong.
Even if you have zero tax liability, the Association is required to file a return.
Per the IRS:

Unless exempt under section 501, all
domestic corporations (including
corporations in bankruptcy) must file an
income tax return whether or not they
have taxable income. Domestic
corporations must file Form 1120, unless
they are required, or elect to file a special
return.

BillH10 (Texas)
Posts: 1,217

Posted:

Tim is correct.

If your Association has no taxes due, I suggest you make a good faith effort to file for the last few (two or three) years, then keep current going forward. I don't think the IRS has the resources or desire to pursue a HOA which has not filed, especially if there is no tax due. Don't spend a boatload of money on this, if you have an owner who is reasonably adept at accounting he or she can assist the officer who will sign the return. It is pretty simple.

GuyM1 (Ohio)
Posts: 318

Posted:

Hi Guys

Well, I was told today that the Secretary called the Attorney and he said we don't need to file anything because were under $50,000 a year. So I don't know whats right or wrong on the subject. I did some more research on it for Ohio and found something on a 990 form that I think we should file but again I'm told we don't need to file anything with anybody. I saw something on the $50,000 but thought it said you still need to file or you could lose your tax-exempt status.

Thanks,
Guy

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By GuyM1 on 06/06/2018 2:36 PM
Hi Guys

Well, I was told today that the Secretary called the Attorney and he said we don't need to file anything because were under $50,000 a year. So I don't know whats right or wrong on the subject. I did some more research on it for Ohio and found something on a 990 form that I think we should file but again I'm told we don't need to file anything with anybody. I saw something on the $50,000 but thought it said you still need to file or you could lose your tax-exempt status.

Thanks,
Guy

Sorry, I do tax returns for HOA's. Unless you something really, really, really special, you are required to file, generally with the income you stated, a 1120-H form. As far as the requirements for your state, that you need to check on, but I would check with that same attorney.

GuyM1 (Ohio)
Posts: 318

Posted:

Hi Richard

Our annual intake would be in the $20,000 to $30,000 thousand range for the year. I don't think we need to file anything for the state but the Attorney said we didn't need to file anything for the IRS. We are a Condo Association of 9 unit that is in a big development which has houses and 9 little condo associations. We all use the same pool that owners pay into.

Thanks,
Guy

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Guy

I expect you will not owe anything, so file.

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By GuyM1 on 06/06/2018 3:58 PM
Hi Richard

Our annual intake would be in the $20,000 to $30,000 thousand range for the year. I don't think we need to file anything for the state but the Attorney said we didn't need to file anything for the IRS. We are a Condo Association of 9 unit that is in a big development which has houses and 9 little condo associations. We all use the same pool that owners pay into.

Thanks,
Guy

Sorry, the attorney is WRONG. Don't believe me, check with your local IRS office. Their link is below.

https://www.irs.gov/help/contact-my-local-office-in-ohio

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Sorry, the attorney is WRONG. Don't believe me, check with your local IRS office. Their link is below.

https://www.irs.gov/help/contact-my-local-office-in-ohio

GuyM1 (Ohio)
Posts: 318

Posted:

Thanks will do

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