Get 2 months of free community web site hosting from Community123.com!
Sunday, October 21, 2018
Get 2 months of free community web site hosting from Community123.com!


SBCA: Free education for HOAs and condos on satellite placement issues.
(National Trade Organization)
Helping HOAs, condos and property managers with satellite placement issues since 1986.
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Mandatory Dues
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
WayneK
(Texas)

Posts:2


10/10/2018 7:30 AM  
Our HOA was never deeded any commnon property and consequently the IRS revoked its tax exempt status.

However, they continue to charge mandatory dues which are payable directly to a the Golf and Country club.

They are imposing penalties for unpaid dues and threatening property liens.

Am I correct in assuming that this not be a mandatory membership HOA and any mandatory dues would be inappropriate?
DouglasK1
(Florida)

Posts:1234


10/10/2018 7:39 AM  
CCR's, convenants, or deed restrictions attached to your deed would establish an association (if any), and define if it is mandatory or voluntary. If your deed does have such encumbrances, you would most likely have a valid association. Tax exempt status or not determines what the association has to pay to the IRS, it does not determine if the association exists.

Escaped former treasurer and director of a self managed association.
WayneK
(Texas)

Posts:2


10/10/2018 8:06 AM  
Due to an audit the IRS stated that because the HOA did not own any property they were not qualified to assess dues. Were they incorrect in their finding?

In other words the golf fees could not be collected by the HOA but would have to be paid directly to the golf club.

I interpret The Texas property laws (Codes 207 and 209) as only applying to HOA's that can assess dues for the repair and maintenance of commonly owned property.
DouglasK1
(Florida)

Posts:1234


10/10/2018 8:43 AM  
I've never heard of the IRS making such a determination, maybe somebody else here has.

If the association thinks that they can assess and collect dues, and you think they can't, I would suggest getting a lawyer's opinion. If the lawyer agrees with you, perhaps a strongly worded cease and desist letter from them to the association will change their minds. If it doesn't, this could easily end up in court for a judge to decide, either when they sue for a judgement or foreclosure, or when you sue to release the liens you think are improper.

Escaped former treasurer and director of a self managed association.
GeorgeS21
(Florida)

Posts:669


10/10/2018 2:30 PM  
Hmmm ...

Is the HOA connected in some way to the Club?

To my knowledge, an HOA can certainly exist without common property - the only thing required, usually, is for the CCRs and Deeds to connect. i.e. if the CCRs say there is an Association, and there are deeds noting this, there is an association.

Trace from the CCRs ...
SteveM9
(Massachusetts)

Posts:3067


10/10/2018 4:42 PM  

Am I correct in assuming that this not be a mandatory membership HOA and any mandatory dues would be inappropriate?




There is obviously piles of paperwork that is the back story to this very short question and impossible to answer without looking at all the paperwork.

What has the lawyer for your HOA said about this?



HOA tax exempt or not? Here are some examples:
https://www.irs.gov/pub/irs-tege/eotopicr82.pdf
Please login to post a reply (click Member Login on the menu).



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement