TishS (Washington)
Posts: 116
Posts: 116
Posted:
The HOA is a registered non profit corporation, are they required to file an IRS tax return and do have yearly dues and assessments.
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HOA not filing tax returns
Started by TishS • 1 replies • 1667 views
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MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Tish,
Like so many people, you may be confusing a nonprofit corp with one that is tax-exempt. Nonprofit HOAs are not tax exempt unless they have acquired a 501(c) status from the IRS. Therefore an HOA that is not tax-exempt must file State (if applicable) and Fed. income tax returns. An HOA may file the corporate form 1120 or the HOA-specific form 1120H. With the latter, taxes are only paid on non-function income which is mainly interest earned. In addition there is an automatic $100 deduction which may result in no tax owed. If yours is a small assn you most likely would file the 1120H, but when in doubt definitely consult with a CPA.
Like so many people, you may be confusing a nonprofit corp with one that is tax-exempt. Nonprofit HOAs are not tax exempt unless they have acquired a 501(c) status from the IRS. Therefore an HOA that is not tax-exempt must file State (if applicable) and Fed. income tax returns. An HOA may file the corporate form 1120 or the HOA-specific form 1120H. With the latter, taxes are only paid on non-function income which is mainly interest earned. In addition there is an automatic $100 deduction which may result in no tax owed. If yours is a small assn you most likely would file the 1120H, but when in doubt definitely consult with a CPA.
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