HOAs may choose to file Form 1120H or Form 1120. Form 1120 is the corporate form that regular corporations would file. Form 1120-H is a specific form that can only be utilized by a qualifying homeowner association.
For HOAs with a calendar year end of December 31, 2016, the IRS has changed the deadlines. All HOAs, no matter what the size, must file a tax return three and a half months after the end of its fiscal year.
For calendar year associations, the deadline is April 15th. It was formerly March 15th, which is still the deadline for S corporation tax returns. The good news is that an HOA can file an extension that will give it an additional 6 months (October 15th). The extension is accomplished by filing IRS Form 7004.
But the deadlines are different for June 30 year-ends. An association with a fiscal year ending on June 30th must file by the 15th day of the 3rd month after the end of its tax year.
Short tax years can be even more complex. An association with a short tax year that ends anytime in June will be treated as if the short year ended on June 30th. Accordingly, it must file by the 15th day of the 3rd month after the end of the tax year.
HOA Tax Return Due Date
These due date changes were recently implemented. They have a big impact on partnership tax returns and C-Corporation tax returns (Form 1120). Since Form 1120-H and Form 1120 are not flow through entities, they pay their own tax.
But what about holiday and weekends? The IRS is flexible. If the due date falls on a Saturday, Sunday, or a legal holiday, then the deadline becomes the next business day.
Penalties have also recently changed. For returns required to be filed after December 31, 2015, the minimum penalty for failure to file a return that is over 60 days late has increased to the smaller of the tax due or $205. The penalty is still relatively low compared to penalties for other returns, such as partnerships and S corporations. But don’t dismiss it because penalties and interest can accumulate quickly.
E-filing is usually the best way to ensure that your returns are filed. The problem is that Form 1120-H is not allowed to be efiled. But you may also utilize certain private delivery services that will meet the “timely mailing as timely filing/paying” rule for tax returns and payments.Whether your association files Form 1120-H or Form 1120, you can find specific insights in the HOA tax form instructions. Due dates for Form 1120-H can be a little confusing. If you are unable to make a timely filing then at least make sure that you get an extension filed.
HOA Tax Extension
For an HOA tax extension, the association must file form 7004. This is the same extension that is used by partnerships and S corporations.
If you are in charge of filing a tax return for a homeowner association (“HOA”), there are some critical HOA tax return due date changes. You don’t want to be late. Filing an HOA tax extension will not be that tough for an HOA CPA.
Form 1099 Due Date
HOAs and community associations must file 1099s by January 31st just like other businesses. This is required even if the HOA has a fiscal year end that does not end on December 31st. If the HOA pays more than $600 during the year to a non-corporate entity then a 1099-MISC should be issued. HOAs deal with many service providers such as:
- Accountants and CPAs
- General contractors
- Pool service providers
- Billing and collection companies
Corporate entities are exempted from 1099 reporting requirements. The HOA will be able to identify corporate entities based on the completion of Form W-9. The 1099 must have the provider’s legal name, address, and tax id# (either an employer ID number or a social security number) in additional to amounts paid during the year. 1099 copies must be submitted to contracted providers and to the IRS by January 31st.
The HOA tax return due date may not be as confusing as you originally thought. Just make sure you are not late. The penalties and interest are just not worth it.