[magdagonz]

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Settle an argument for me… do we have to file tax returns for the POA? I say we do but another board director says we don’t… so what is it??

[nychrisjohn]

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If you’re talking about federal tax returns, then yes. All homeowners associations do need to file federal tax returns regardless of whether or not tax is actually owed. As an HOA, you can either file Form 1120 (which is the form for corporations) or Form 1120-H (which is the form that the IRS specifically designed for HOAs). I’d go with Form 1120-H if I were you because it’s much simpler and has more benefits. But there are some requirements you have to meet first. On the top of my head I can’t think of the requirements but you can visit the IRS website to check for yourself. Good luck!

[ton1]

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The above user is correct. All associations need to file tax returns with the IRS. If you haven’t been doing this already for the past x years, you will likely need to face a penalty. Not sure what the penalty is though…

[nychrisjohn]

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Penalties are usually monetary. And you have to present all past returns or something like that. Best to have an accountant set the whole thing up for you. Much easier that way.

[magdagonz]

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Thank you!!! I knew it… what about state tax returns? I live in Colorado if that helps…

[nychrisjohn]

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Based on a quick Google search, Colorado HOAs do need to file state tax returns as well. Again, check with an accountant for filing requirements and deadlines.

[ginnie34]

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Tax season has always been a breeze for us. Hire a good accountant. That is the key, I’d say. Federal and state tax returns – yes, both are mandatory (unless your state does not collect income tax on corporations). Here’s a good resource I also found on this site: https://www.hoamanagement.com/hoa-tax-return/

Documents can be overwhelming and it’s hard to calculate stuff. I know an accountant based in Denver if that’s near you. Could recommend them to you.

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