Question:
A HOA choses not to use IRS Form 1220-H.
Even if, then the HOA does not file a federal tax return, they are still required to file IRS Form 1120?
Would this make fees, assessments taxable unlike when using Form 1120-H where the fees & assessments would be tax exempt (non-taxable)?
– Sam
Answer:
Hi Sam,
Homeowners associations are required to file federal tax returns and pay federal taxes. You can choose from either Form 1120 or Form 1120-H. It is necessary to file a return even if your HOA does not owe any taxes.
For more information, here are some good resources:
https://www.hoamanagement.com/hoa-pay-taxes/
https://www.hoamanagement.com/hoa-tax-return/
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
