March 15: Tax Day for HOAs
Nope, that's not a mistake. Although individual tax returns are still due in April, March 15th has long been the deadline for most corporate tax returns. Don't risk late penalties or the suspension of your corporate status - file your association's taxes right away! Federal Income Tax ReturnsAll associations, no matter how small, must file a Federal income tax return 2 and 1/2 months after the end of its fiscal year. For calendar year associations, the due date is March 15, although it can be extended for 6 months by filing an extension form. Associations may elect to file Form 1120H or the standard corporate form 1120. All federal tax forms are available on the IRS website: http://www.irs.gov/.
Form 1120 (PDF)
http://www.irs.gov/pub/irs-pdf/f1120.pdf
Form 1120-H (PDF)
http://www.irs.gov/pub/irs-pdf/f1120h.pdf California Income Tax ReturnsCalifornia Form 100 is also due the same time as the Federal returns. While most associations have "tax-exempt" status with the State of California, non-membership income such as interest is taxable. If the association has more than $100 in nonmembership income, then a return is required. Failure to file Form 100 when required can result in significant penalties and interest if tax is owed and can result in the suspension of the corporation by the state. All State tax forms are available on the Frachise Tax Board website: http://www.ftb.ca.gov/.
Form 100 (PDF)
http://www.ftb.ca.gov/forms/2009/09_100.pdf California Exempt Organization ReturnForm 199 is required of all tax-exempt associations that receive $25,000 or more in revenue from any source (assessments, etc.) It is due 4-1/2 months after year-end but that date can also be extended. A $10 filing fee is required annually. Failure to file this form when required can result in an additional $55 in penalties plus interest. Corporate powers can also be suspended for failure to file this form. Form 199 (PDF)
http://www.ftb.ca.gov/forms/2009/09_199.pdf Taxes are complicated, and many associations have unique tax requirements. Your association may need to file 1099 forms, or employment tax returns if it hires employees. To avoid errors, associations should use a tax specialist to handle their taxes. Don't have an accountant? Find one that specializes in HOA taxes in ECHO's professionals directory. Just follow the link below.  For more information
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