Tax Checklist for Your Association: What to Provide to Your Tax Preparer 

Tax Checklist for Your Association: What to Provide to Your Tax Preparer 

Some say December is the “most wonderful time of year,” but for the Certified Public Accountants out there, it’s also the precursor to the busiest time of year: Tax Season.  

If you’re a residential community association, you are responsible for filing your annual federal tax return. That’s typically Form 1120-H for residential associations, although some can file Form 1120, and a very small number might be eligible to file Form 990 as a federally exempt organization (generally under IRS code 501c (4) or (7)). Commercial associations must file Form 1120.  

Working with a CPA firm to file taxes? Here’s what they’ll need.  

If you have (wisely) decided to engage a CPA firm that understands the tax issues unique to homeowner and community associations to handle your taxes, there are several things you’ll need to gather to make this process as smooth and efficient as possible.  

Here’s your tax engagement checklist as a common interest realty association:  

• Financial statements for the tax year: income statement and balance sheet 

• General ledger for the tax year 

• Prior year tax return  

• Prior year tax return credits or underpayments 

• Estimated tax payments made during the tax year 

• Extension payments made during the year (if applicable) 

• Record of all taxable income for the year, including: 

• Interest income 

• Sales of assets 

• Other income from external sources 

• Record of all direct expenses related to the production of taxable income 

Which form should your association file?  

That’s a question with a complicated answer, but in our experience, most community associations should file Form 1120-H. Some associations must file Form 1120 because they don’t meet the requirements to file Form 1120-H, which is much simpler. Again, this can get complicated, so it is best to consult with a CPA that understands the accounting requirements for filing Form 1120 and the advantages vs. disadvantages of 1120-H vs. 1120.  

Questions about tax filing requirements for HOAs and other associations? Need audit help as well? email Contracts@hoacpa.com, for a proposal.