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Subject: NC-Never filed 1120-H since 2008
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ScottC4
(North Carolina)

Posts:1


02/09/2015 9:26 AM  
I recently became the treasurer of our small association. There are approximately 15 owners that make up the association. In reviewing the box of materials handed off to me, I found that in 2012 the treasurer at the time applied for an EIN which triggered a response from the IRS indicating that the association had not filed 1120-H forms since 2008. In checking with the treasurer at the time, she indicated she spoke with the IRS but doesn't remember the outcome. In talking with the previous treasurer, he indicated that he never filed any returns.

The association does not own any land or clubhouse. All dues collected are used for maintenance of the private roads. We collect money each year and put it into a checking account for use when needed. We average $2000 every other year in road patching and around ever 6-8 years we completely repave the road.

I'm guessing that we need to send in 1120-H forms for each year 2008 through 2014. As I was not even a homeowner until a few months ago, I'm leery of putting my name on the past documents as I don't want to be responsible for past years. Am I being paranoid about trying to catch us up on these filings and putting my name on them?

I don't believe that we should end up with taxable income even though we are carrying a balance each year forward so there should not be penalties for back taxes owed. Is there any fine for not filing on time that there could be penalties for?

Also, I have not found anything that indicates whether NC has a separate filing outside of the federal 1120-H form.
JohnB26


Posts:0


02/09/2015 12:24 PM  
Notify the BOD of the IRS issue.

File the form for whatever year(s) you are treasurer.

Let the chips fall where they may.
TimB4
(Virginia)

Posts:16555


02/09/2015 1:26 PM  
Scott,

I live in VA. Our Association, like many others, is also a registered corporation. As a Corporation, we are required to file a corporate tax return. This may be the same in NC.

At the very least, you should file the 1120H for the years you are treasurer.

You may want to prepare the 1120H's for the years you missed and see if you do or do not owe any taxes (we sometimes owe taxes when the interest earned is greater than the $100 deduction allowed on the 1120-H). Lets face it, as Treasurer, you are the one with the records needed to fill out those forms.

Keep in mind that, per the IRS instructions, The return must be signed and dated by the president, vice-president, treasurer, assistant treasurer, chief accounting officer, or any other association officer (such as tax officer) authorized to sign.


As a side note: You may want to separate your Reserve funds from your operational funds. We keep our operational funds in our checking account and Reserve funds in our savings account. When we have a reserve expenditure (road repairs for example) we transfer that amount from the reserves (savings) into the operating funds (checking) and issue a check to pay for the expenditure.

Has your Association completed a reserve study?

TimB4
(Virginia)

Posts:16555


02/09/2015 7:05 PM  
Scott,

You should also be aware that the IRS penalty for late filing is 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. Therefore, if the Association does not owe any taxes, there is no penalty.

If the Association does owe taxes for any of those years, it's best to resolve the issue now rather than later.

See Eight Facts on Late Filing and Late Payment Penalties from the IRS website:

http://www.irs.gov/uac/Newsroom/Eight-Facts-on-Late-Filing-and-Late-Payment-Penalties
KathyS20
(North Carolina)

Posts:2


11/26/2019 12:14 PM  
That is not true. There is a minimum penalty.
KathyS20
(North Carolina)

Posts:2


11/26/2019 12:15 PM  
In North Carolina you file a CD-405 C Corporation Tax Return
GeorgeS21
(Florida)

Posts:1531


11/26/2019 12:24 PM  
Old thread.
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Forums > Homeowner Association > HOA Discussions > NC-Never filed 1120-H since 2008



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