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THE ROLE OF A CPA
A CPA is a licensed accounting professional who
has met rigorous education, exam, and experience
requirements. Because HOA finances often include
multiple income sources, exemptions, reserve funds,
member assessments, and state-level requirements,
partnering with a CPA is a smart move.
A CPA is generally able to:
• Determine your eligibility for favorable tax treatment,
such as under Internal Revenue Code Section 528,
to potentially reduce your community's tax burden.
• Prepare and file the correct federal (and applicable
state) tax returns on your behalf, minimizing the risk
of errors that could lead to IRS audits, penalties, or
unnecessary taxes.
• Handle complex financial situations, such as non-
member income, reserve fund interest, and rental
activities, with accurate reporting, ensuring full
compliance and peace of mind.
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