Texas HOA - file 1120-H

Started by KarenV3 • 5 replies • 116 views

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KarenV3 (Texas)
Posts: 2

Posted:

Hello,
I have very recently taken over as President of our poorly mismanaged HOA. I am quickly trying to get up to speed. The more I read, the more leery I am to be in this position. We have never filed an IRS form 1120 – H. We are a nonprofit HOA in the state of Texas with 71 members. I’ve done a little research and it appears we should be filing this form every year. Does anyone have any experience with this? I am mostly concerned because we have never filed one in the past and what repercussions this may cause. We also do not have D&O insurance. I’m curious whether other HOA’s have this insurance and is it strongly recommended? I am sure I will have other questions as I dig in further these are my top two concerns today. Thank you.

ElleN (Idaho)
Posts: 1,338

Posted:

Quote:

Posted By KarenV3 on 01/18/2026 11:52 AM
Hello,
I have very recently taken over as President of our poorly mismanaged HOA. I am quickly trying to get up to speed. The more I read, the more leery I am to be in this position. We have never filed an IRS form 1120 – H. We are a nonprofit HOA in the state of Texas with 71 members. I’ve done a little research and it appears we should be filing this form every year. Does anyone have any experience with this? I am mostly concerned because we have never filed one in the past and what repercussions this may cause.

Is this a HOA consisting of single family homes on lots? Or is this a condominium?

Is this HOA incorporated?

I do not expect major repercussions for not filing the the required tax form (which is either 1120-H or 1120). Hire a CPA and get it done, for both the current tax year that is due and prior years.

Quote:

Posted By KarenV3 on 01/18/2026 11:52 AM
We also do not have D&O insurance. I’m curious whether other HOA’s have this insurance and is it strongly recommended?

What do your HOA's bylaws and declaration say on this?

D&O insurance is strongly recommended.

Best practices for a new board member:
Always ask, "Where does it say XYZ in the bylaws, Declaration and articles of incorporation? Do Texas statutes (notably TPC 209, BO 22, and the two condominium statutes) speak to XYZ?"

KarenV3 (Texas)
Posts: 2

Posted:

I am told that we are Inc. however, after doing some research, I cannot find proof that we are Inc.. I can’t stay strongly enough. This was a very poorly managed HOA. Our bylaws, which we are in the process of rewriting, State nothing about filing these forms or about D&O insurance. To be honest, it feels as though the more I research the more miss managed we have been. I think our prior president and board managed with the old handshake and friendly neighborhood mentality.

ElleN (Idaho)
Posts: 1,338

Posted:

Put your HOA's name into the "entity search" window here:

https://comptroller.texas.gov/taxes/franchise/account-status/search

Does the HOA come up?

DeanJ
Posts: 1,786

Posted:

Quote:

For the 2024 tax year, HOAs that fail to file Form 1120-H on time (typically April 15) may face a minimum failure-to-file penalty of $485 if the return is over 60 days late. Additionally, the penalty can include 5% of the unpaid tax for each month it is late, up to 25% of the total tax due. That doesn’t mean the IRS won’t waive it if you otherwise owed no taxes.

If your HOA doesn’t purchase D&O insurance in the next 30 days, resign.

JackS20 (North Carolina)
Posts: 271

Posted:

Just ask for abatement the fees for late HOA IRS fillings are peanuts compared to how the IRS will hammer inividuals who fail to file or owe back taxes.

1120-H is so easy a monkey can fill it out. We've had board members file it for the past couple years saved $300 in CPA fees.

lastly a tax person typically charged our HOA $300 per year to do our super easy taxes. You can bad mouth the old board but ironically the fees for filing all of those late years will be less than if you actually hired a CPA to file for you every year.

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