HOA Management Blog

At The Hignell Companies we have been providing professional management services for California Homeowner Association Boards for nearly 30 years. We love sharing our knowledge and perspective. Give us a call at 530-419-6032 if you have any questions.

Important Tax Deadlines Your HOA Board Should Put on the Calendar

November 8, 2015 at 3:50 PM / by HOA Manager

tax_time_written_on_calendarYour homeowners association has tax reporting and filing requirements it must adhere to. It can be difficult for an HOA board to understand what these are all on its own. It’s important that your HOA board contacts your Association’s accounting professional for details but below is a brief summary of California HOA tax return deadlines.

Posted by: ECHO

Eight HOA Tax Reporting and Filing Deadlines You Should Know

HOA Tax Return Deadlines

Employment Tax Returns

Standard Deadline: 30 Days After End of Each Calendar Quarter

For those associations that hire employees, Federal form 941 and California form De-6 are due 30 days after the end of each calendar quarter. Tax payments are due semi-weekly, monthly or at the filing date, depending upon the amount owed. Annual tax reports (Federal W2, 940; California DE-7) are due January 31.

Federal Income Tax Returns

Standard Deadline: March 15

All associations, no matter how small, must file a Federal income tax return two and a half months after the end of its fiscal year. For calendar year associations, the due date is March 15, although it can be extended for 6 months by filing an extension form (IRS Form 7004). HOAs may elect to file Form 1120H or the standard corporate form 1120.

California Income Tax Returns

Standard Deadline: March 15

California Form 100 is also due the same time as the Federal returns. While most associations have “tax-exempt” status with the State of California, nonmembership income such as interest is taxable. If the association has more than $100 in nonmembership income, then a return is required. Failure to file Form 100 when required can result in significant penalties and interest if tax is owed and can also result in the suspension of the corporation by the state.

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Taxes can be overwhelming for individuals, let alone HOA board members volunteering their time and having to figure out the ins and outs of homeowners association taxes. To make sure your HOA board is meeting all the requirements, schedule a meeting with your accounting professional. If you don’t have one for your Association, now is the time to find one.

An HOA manager can help during tax time and in other important areas that affect your homeowners association, such as understanding the law, conducting a reserve study, and providing support for the management of the day-to-day tasks of the Association.

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Topics: HOA Management, HOA Board, HOA Accounting