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Subject: VA Associations now required to e-file
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TimB4
(Virginia)

Posts:16005


10/24/2012 2:23 PM  
We just received notice from the VA Tax Office that starting Jan 1, 2013, all corporations in VA are required to e-file and pay taxes through electronic funds transfer.

The Association must use an approved tax program to e-file.
I just checked the costs of those approved programs $300 - $2,500.

Attachments must be in the form of pdf files (so a scanner is required)

My Association is small (130 lots), self managed and with no physical office.
Officers are appointed each year and work out of their home.

Our taxes last year were ZERO for both federal and State.

Now instead of spending $1.00 for postage, an envelope and copies
We need to spend $300 or more for the sole purpose of telling the State we don't owe anything.


BTW, If I recall correctly, the IRS didn't allow e-filing of the 1120-H form


PLEASE if your a VA HOA or COA contact the legislature and anyone else who will listen and have a permanent waiver of this requirement for HOAs and COAs.


This is insane!


Off to redo our budget for next year.
LarryB13
(Arizona)

Posts:4099


10/24/2012 3:04 PM  
Posted By TimB4 on 10/24/2012 2:23 PM
Attachments must be in the form of pdf files (so a scanner is required)




Maybe not.

Open.org has free software that emulates Microsoft Office. One feature is that it will convert documents directly into pdf format. I use it to convert my Word documents to pdf's, but I believe that it will convert many other file types to pdf as well.

Of course, if your documents must be signed then you are back to the old print-sign-scan routine.

Most printers also have scan/copy functions. I have a 7-year old HP officejet that scans and their control progam allows conversion of the scanned document directly into pdf format.

I agree with you, though, that it sucks to be required to purchase software to file returns that show you owe no taxes.

What are the consequences of not filing if you owe nothing?
LarryB13
(Arizona)

Posts:4099


10/24/2012 3:16 PM  
Tim (and everyone else),

Please ignore my previous post about open.org. Either I have the wrong site or they have changed radically since my last visit there a few years ago.
LarryB13
(Arizona)

Posts:4099


10/24/2012 3:18 PM  
The site I meant to direct you to is openoffice.org. Yeah, I know. I shoulda checked out the link before I posted it. Doh!
TimB4
(Virginia)

Posts:16005


10/25/2012 4:26 AM  
Thanks Larry.

I did some more research and discovered that VA did this because the State believes that only 20-30% of Associations in VA are filing corporate taxes. Therefore, they want to force electronic filing so they can more easily track it.


I still haven't located the actual language of the act to see if there are penalties for filing a paper return instead of the required electronic return.

I know it's Item 273N of the 212-214 Appropriations Act (chapter 3, acts of assembly 2012 special session 1)but all I find are summaries and not the actual act.


SteveM9
(Massachusetts)

Posts:3105


10/25/2012 5:49 AM  
I still haven't located the actual language of the act to see if there are penalties for filing a paper return instead of the required electronic return.


I cant imagine there will be any penalty if you dont have the resources to do so.
BruceF1
(Connecticut)

Posts:2535


10/25/2012 10:07 AM  
Tim,

If you do some looking I'm pretty sure you can find some local firms that will e-file your taxes for you for a small fee (perhaps $25-$30). Try checking with some local firms or CPAs that prepare taxes. The IRS requires all professional tax preparers who serve more than a handful of clients to e-file federal returns, and several states have similar requirements.
EdmundS1
(North Carolina)

Posts:45


10/25/2012 12:44 PM  
Looks like you have a number of viable options available. I'm more concerned with a 130 unit HOA not having a more formal structure, for your own protection. Do you have regular meetings? Do you have liability insurance, common areas that your HOA is responsible for? May be a wake up call to review your HOA's structue and functions and avoid future problems....
SteveM9
(Massachusetts)

Posts:3105


10/25/2012 2:21 PM  
We just received notice from the VA Tax Office that starting Jan 1, 2013, all corporations in VA are required to e-file and pay taxes through electronic funds transfer.



A quick google and it brought me to the VA Tax Office website.
http://www.tax.virginia.gov/site.cfm?alias=CorpIncomeTax

And I found this. A simple waiver.
"Corporations that are unable to file and pay electronically by the effective date should request a hardship waiver."

http://www.tax.virginia.gov/taxforms/Business/Corporation%20and%20Pass-through%20Entity%20Tax%20Forms/2012/Waiver%20Request.pdf

Done.
SteveM9
(Massachusetts)

Posts:3105


10/25/2012 2:22 PM  
Fill it out in crayon and snail mail it.
Reason: Do not have computer or scanner.

LOL.
TimB4
(Virginia)

Posts:16005


10/26/2012 2:47 AM  
Posted By EdmundS1 on 10/25/2012 12:44 PM

I'm more concerned with a 130 unit HOA not having a more formal structure, for your own protection. Do you have regular meetings? Do you have liability insurance, common areas that your HOA is responsible for? May be a wake up call to review your HOA's structue and functions and avoid future problems....




Edmund,

We definitely have organizational structure and the Association runs well.

What we do not do is maintain an office at a physical location (our mailing address is a PO Box). We are self-governed and the Directors/Officers operate out of their home. Board/Committee meetings are hosted by the Director/Committee member in their home. General membership meetings are held in the nearby school.

I do appreciate the concern. My point in this thread was that this new requirement (not specifically targeted at HOAs but at Corporations) can become a financial burden for many Associations. I believe it's an idea not fully thought out before it was implemented.


TimB4
(Virginia)

Posts:16005


10/26/2012 2:52 AM  
Steve,

Yep, in the mailing they did include a "temporary" waiver. Perhaps it's the agencies way of finding out if this can be implemented full time.

Again, to go from $1 to even $30 is frustrating (on principal).

I like the Crayon idea
OttosV
(Virginia)

Posts:2


10/31/2018 6:51 AM  
I agree with you!
RoyalpitA


Posts:0


10/31/2018 6:59 AM  
There are alternate PDF softwares to 'Adobe'.

PDF Complete is one alternative.

Under $20 for 'basic' corporate edition.

Said software installs a printer driver which allows you print ANYTHING on your computer to either file or paper or both.

problem? what problem?
SueW6
(Michigan)

Posts:325


10/31/2018 2:49 PM  
I/m confused.

In Michigan, the state Corporations, Securities and Commercial Licensing Bureau accepts E-files for Annual Reports. That lets the state know you are operating as a current corporation.


The IRS accepts Form 990. We can do the Form 990N or 990EZ because we are under the radar.

What forms are you filing with your state?

RoyalpitA


Posts:0


10/31/2018 2:57 PM  
State forms will vary state by state.

Federal requires 1120, but, there is a 'special' 1120-H for not for profit HOAs. (basically tax free unless over $100 in non exempt income)

Not to be confused with 503(c) non profit charities.
DouglasK1
(Florida)

Posts:1263


10/31/2018 6:56 PM  
So why are we all responding to a six year old thread? And where is Tim?

Escaped former treasurer and director of a self managed association.
RoyalpitA


Posts:0


11/01/2018 12:36 AM  
Oh, ka-ka
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