Can we file an ammended return form 1120-H if we filed 1120 last year?

Started by LauraR2 • 11 replies • 3374 views

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LauraR2 (West Virginia)
Posts: 41

Posted:

We are a 33 lot POA that is 4 years old. Last year was the first year we filed a tax return. Our president did it and she used form 1120. The more I read here, the more I think 1120-H would be better (although I haven't done any calculations). Can we file an ammended return and use 1120-H instead of 1120? Or should we just let sleeping dogs lie... I don't want to draw IRS attention to the fact that we didn't file for 2 years.

DamonN (Ohio)
Posts: 9

Posted:

Was this question ever answered?

DouglasK1 (Florida)
Posts: 2,045

Posted:

The 1120-H instructions say this:

Once Form 1120-H is filed, the association cannot revoke its election for that year unless the IRS consents. The association may request IRS consent by filing a ruling request. A user fee must be paid with all ruling requests. For more information on ruling requests, see Rev. Proc. 2020-1, 2020-1 I.R.B. 1 (or any successor), available at IRS.gov/irb/2020-01_IRB#RP-2020-01.

but I don't see anything about switching the other direction.

You could try giving them a call.

Escaped former treasurer and director of a self managed association.

BenA2 (Texas)
Posts: 1,273

Posted:

I'm not sure if you can amend an 1120 to a 1120-H. Since the amended form (1120-X) does not have that option, my guess is that you probably have to get permission from the IRS if it is allowed. I would talk to a CPA. If they charge you for the advice it will probably be minimal.

First, I would ask the person who filed the return why they filed 1120. They should have calculated the taxes using both forms to determine which is most beneficial to you for any particular year. If they did that, there would be no need to amend it. Our CPA explains every year which filing method is most beneficial and it can change every year.

DamonN (Ohio)
Posts: 9

Posted:

Upon further research, a condominium association has an automatic 12-month extension to elect under section 528 to File Form 1120-H under Regulation section 301.9100-2. You must state "Filed pursuant to Reg. 301.9100-2". No request for a letter ruling is required. Therefore, a 2020 Form 1120 filed in January 2021, can still be amended to file Form 1120-H. I presume the amended box on Form 1120-H should be checked.

DamonN (Ohio)
Posts: 9

Posted:

DamonN (Ohio)
Posts: 9

Posted:

DamonN (Ohio)
Posts: 9

Posted:

I plan to file Form 1120-X along with a Form 1120-H with the amended box checked. I plan to write "Filed pursuant to reg. 301.9100-2" at the top of each page of Form 1120-X and on Form 1120-H. The original 2020 Form 1120 was filed in January 2021. So I should have a 12-month automatic extension to make the election under sec. 528 to file Form 1120-H. See the instructions for 1120-H and reg. 301.9100-2 for further information. Has anyone ever done this? Thanks for everybody's feedback.

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By DamonN on 07/01/2021 2:42 PM
I plan to file Form 1120-X along with a Form 1120-H with the amended box checked. I plan to write "Filed pursuant to reg. 301.9100-2" at the top of each page of Form 1120-X and on Form 1120-H. The original 2020 Form 1120 was filed in January 2021. So I should have a 12-month automatic extension to make the election under sec. 528 to file Form 1120-H. See the instructions for 1120-H and reg. 301.9100-2 for further information. Has anyone ever done this? Thanks for everybody's feedback.

You do know this went over everyone 's head, don't you?

DamonN (Ohio)
Posts: 9

Posted:

Well, I hope not. However, I agree the tax laws are complex and I believe that is why most eligible condo associations file Form 1120-H to begin with. I was just elected to our Board of Directors, and I discovered that our 2020 tax return had several errors in it and requires amending. Therefore, to reduce our risk and potential tax liability we desire to elect filing Form 1120-H. Unfortunately, our income tax preparer died shortly after filing the tax return, so I cannot question him as to why he filed Form 1120. I was hoping someone out there has gone through a similar situation. Thanks to anyone who might be able to confirm my understanding of the tax rules. This is all new to me.

MaxB4
Posts: 3,513

Posted:

Where I used to live, for a number of years we filed 1120 because we had interest on our reserve account of $50K per year. Now they file 1120-H as there is no sizable interest any longer.

I handle tax prep for the associations I manage and all but two use 1120-H.

DamonN (Ohio)
Posts: 9

Posted:

Also, the instructions for Form 1120X states the purpose of the form is to "make certain elections after the prescribed deadline (see Regulations 301-9100-1 through 3)". As I mentioned previously, Reg. 301.9100-2 grants an automatic 12 month extension for making a sec 528 election to file Form 1120H. So I do feel fairly confident that I am doing this correctly. I would just like to have some additional support from someone.

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