Most CPAs see a handful of association returns a year — not enough to catch the nuances of Form 1120-H. Use these questions to separate specialists from generalists before your board signs an engagement letter.
A specialized HOA CPA should answer all six without hedging.
A specialist files hundreds. A generalist files one or two. Volume is the single best proxy for expertise on Section 528.
There's a real answer involving the 21% flat rate, exempt function income, and net operating losses. If the CPA waves the question off, they probably default to 1120-H every time.
Done wrong, these are taxable. Done right, they're not. A specialist will explain the IRS revenue rulings without being prompted.
Many associations need a state return as well as a federal one. Confirm the CPA actually files in your state — and knows whether your state taxes HOAs differently.
Flat-fee shops have done the work to understand HOA scope. Hourly billing is a sign the CPA is figuring it out as they go.
Boards turn over. The CPA who prepares your return should be available to answer questions for the treasurer who inherits it next year.
If you see two or more of these, your board is talking to a generalist.
HOAs are all we do. Tell us about your association and we'll respond with a flat-fee quote.