POA Taxes

Tax time can be an exacting period, particularly for property owners associations (POAs). Make tax season more bearable with help from Clark Simson Miller.

Are Property Owners Associations Exempt from Filing Returns?

Much like homeowners associations, property owners associations are subject to federal and state tax laws. And, under the eyes of the law, POAs are generally not exempt from paying taxes and filing tax returns — even if they are organized as nonprofit corporations. It is also required to file tax returns even when there is no tax due.

Federal POA Taxes

Remote or Full Service HOA Management

Property owners associations have two options when it comes to federal tax forms to file: Form 1120 and Form 1120-H.

Form 1120 is more complicated and requires more work to complete. This is also the form most corporations use. When filing this form, the entirety of a POA’s net income is subject to taxation. The upside to this form is it charges a lower tax rate for the first $50,000 of a POA’s net income.

On the other hand, using Form 1120-H is much easier because it has fewer prerequisites. This is the form most commonly used by homeowners associations (including POAs). But, a POA must meet certain qualifications to be able to file this form.

State POA Taxes

Every state has its own tax laws. Therefore, POAs must look to their own state’s tax code to find out what requirements are applicable to them. Similar to federal requirements, though, POAs generally must file state tax returns even if there is no tax due. It is worth noting that some states don’t collect income taxes.

Why Get Professional POA Tax Help

Considering how complicated POA tax preparation can be, many property owners associations have a hard time during tax season. But, there is a simple way to make tax filing easier — outsource the job to tax professionals like Clark Simson Miller.

Clark Simson Miller helps property owners associations with their federal and state tax returns. Not convinced? Here are the advantages of hiring an established company like us:

  • Knowledge of the Tax Code. CSM professionals know the tax code like the back of their hand. We can help determine whether or not certain requirements apply to you.
  • Completion of All Necessary Forms. Too many forms to keep track of? We can fill out all necessary forms in your place, including extension forms and schedules.
  • On-Time Filing. Filing your tax returns late can lead to hefty fines. Never miss another tax deadline with CSM!
  • No Errors. Mistakes can result in costly consequences and even an IRS audit. Avoid errors, hire professionals.
  • Tax Advice Year-Round. CSM professionals can provide you with valuable counsel that can save you tax dollars.
  • Previous Tax Returns. Not sure if you filed your past tax returns correctly? CSM can review past returns and make any necessary corrections.

Peace of Mind. Gone are the days of worrying over POA tax preparation. Put your trust in CSM and you can breathe easy from now on.

A Capable and Reliable Partner

Clark Simson Miller boasts years of experience and a team of highly qualified tax professionals. We are committed to providing our clients with high-quality results and unparalleled customer service, all with transparency and a smile.

Partner with CSM today for an all-around smoother tax season. Call us today at 865.315.7505 to learn more or contact us online to request a proposal for help with POA taxes.

Get Started With a Free Community Assessment