Do Associations Need to File Tax Returns?

Community and homeowner associations, just like any other US corporation, must file federal and state tax returns each year. Just because most associations are considered non-profit doesn't absolve them of their income reporting responsibility.

What type of tax return does an association file?

An HOA may elect to file Form 1120-H U.S. Income Tax Return for Homeowners Associations as its income tax return, in order to take advantage of certain tax benefits. These benefits, in effect, allow the association to exclude exempt function income from its gross income.

What happens if HOA does not file taxes?

Form 1120-H

When you do not file your HOA income tax return by the due date, a late filing penalty will be assessed. The penalty is based on the amount of the tax liability.