North Carolina - tax returns

Didn't you ask the association accountant about this? That would be the quickest way to get your answer - besides if you filed one in 2019, why would 2020 be different?

Or you could Google it as I did - here's what I found: North Carolina homeowners associations must file Articles of Incorporation with the Secretary of State, and therefore, are considered corporations and must file taxes just like any other corporations across the country. One very rare case to avoid filing is to apply to be a Non- Profit entity under section 501(a)(4), form 990. However, it requires a lot of investing in research and paperwork.

So, if you're a non-profit organization, it would appear you're ok - but ask your accountant to be sure

Sheila, did you mean 501(c)(4)?

If you did, that designation must be granted by the IRS, which I believe you indicated in so many words. A statement in Articles of Incorporation or other documents that an association is "non-profit" does not automatically convey the status on the entity.

You are correct, obtaining 501(c)(4) status is a long and involved process. We took an Association through the process several years ago as the status was a prerequisite to eligibility to file for a city beautification grant. I think the cost was $500 payable to the IRS with the application, we used the Association CPA as well. His cost was $700, it took about four months.

The Association in which we reside filed for 501(c)(4) status in the Fall of 2019. The application is still pending, the IRS has told the MC they are processing the applications very slowly due to constraints imposed by the Covid situation as it affects their staffing.

I believe this terminology was mentioned in a message some months ago: the use of the term "non-profit" to describe associations is misleading. Not-for-profit is a more accurate description.