Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
If you have not filed since 2008, you would need to become current on your tax filings by filing for years 2009-2012 and then remaining current by filing every year
How would I become current? I can only find the form for this year.
OK let me search for the forms. They should exist for the prior years as well
So, you're suggesting I submit a form for each year skipped? Is there a penalty for filing previous years?
Here's 2009: http://www.irs.gov/pub/irs-prior/f1120h--2009.pdf
Here's 2010: http://www.irs.gov/pub/irs-prior/f1120h--2010.pdf
and 2011: http://www.irs.gov/pub/irs-prior/f1120h--2011.pdf
No, there's no penalty for filing the return, but there is a penalty for not filing the return
By failing to file the 1120-H on time, you could lose the chance to use the 1120-H as your tax return, instead having to use form 1120 and paying tax on all your profits.
The failure to file penalty is 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $135. The penalty will not be imposed if the association can show that the failure to file on time was due to reasonable cause.
can you also send 2008?
There ya go!
Thanks for your help. So, I should file each year's return? And, we don't normally owe tax, so I shouldn't expect to owe?
Well, the bad news is that you cannot file form 1120-H for years except for 2012 because you did not timely file
You will have to file form 1120.
Which is the corporate tax return
Since you have so many years of back taxes, the tax situation is rather complex and I would suggest that the treasurer of the homeowner's association work with a tax professional that specializes in this field of accounting.
Can you recommend anyone in Boston?
Unfortunately, we cannot make recommendations but you could contact the Massachusetts board of accountancy to find a licensed CPA in your area. Just when you call ask them if they work with homeowners associations
Is there a way I can just submit this year's form?
The problem is, that I think that for 2012 you are too late as well, if you did not file an extension
No, I did not file an extension
If you are late in filing your return past the natural 3 1/2 months timeframe or an additional 6 months for an extension plus 12 months for the automatic extension you will be required to file a Form 1120 and may not elect to file a Form 1120-H.
It looks like our last filing was dated Sept 1 2007- Aug 31 2008.
it was signed 11/17/08.
So, do you think I could file the 2012 form from Sept 1 2012- Aug 31 2013?
Yes, that would work, because it is still within three months of the filing. I was assuming you were on a calendar year
OK, good, so I could go ahead and file the 2012 form. Would that trigger any kind of audit on previous years?
I can't say with certainty, but it is possible that they will notice the lapse and start asking for tax returns.
that is why I would hire a professional to help you with this.
That makes sense. You think a CPA with experience with home owners associations would be our best option?
And, just clarify, you don't think I can submit the previous years 1120-H forms? Only the 2012 form? (Sorry, I need the repetition).
No, I do not believe you will be able to submit a form 1120-H for the prior years, I believe you will have to file a regular 1120.
That's fine, I don't mind repeating :-)
One last question, do you think I should go ahead and file the 1120H form for this year right away? Or, should I contact a CPA first and hope for a quick meeting to receive guidance on the entire situation?
I would get guidance on the whole situation, but if it takes longer than 3 weeks to get in, I would just go ahead and file.
Good. Thank you for your time and advice.
You're welcome. I wish you the best of luck. If you would, please don't forget to rate my response as "Excellent" so that I may receive credit for assisting you today