ON the 1120-H there is never a REQUIREMENT to file.
From the purpose of form section from IRS:
A homeowners association files Form
1120-H as its income tax
take advantage of certain tax benefits.
These benefits, in effect, allow the
association to exclude exempt
function income (defined later) from
its gross income.
This is a return that is filed in order to elect certain treatment.
So, here the exemption is by choice, and further, would be needed only when at least some exempt function is there in that year. But again this is not a required form.
ON the 1120 itself, no there are no exemptions UNLESS you elect to file the 1120-H
See this from IRS:
Who Must File
Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income
. Domestic corporations must file Form 1120, unless they are required, or elect to file a special return.
Who must file (for 1120)
See this: http://www.irs.gov/instructions/i1120/ch01.html#d0e203
Purposeof form (1120-H)
and this: http://www.irs.gov/instructions/i1120h/ch01.html#d0e156
Hope this helps