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FREQUENTLY ASKED
QUESTIONS
1. What happens if an HOA misses the tax filing deadline?
Missing the deadline could lead to penalties, interest on unpaid taxes, and
potential IRS scrutiny. Filing an extension gives your association an automatic
six-month extension to submit the tax return, moving the deadline from the
original due date to later in the year. However, it doesn't remove the obligation to
pay any taxes owed by the original deadline, as interest and penalties may still
apply to unpaid amounts.
2. Which tax form do most HOAs file, Form 1120 or Form 1120-H?
Many HOAs choose Form 1120-H because it offers tax benefits on exempt-
function income. However, some associations with certain income types or
financial goals might use Form 1120.
3. Can an HOA be fully tax-exempt?
Yes. A CPA can help boards navigate IRS rules to determine tax-exempt status,
file appropriate forms, classify income correctly, and comply with state and
federal regulations, reducing costly errors.
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