Since tax season is upon us, I am curious to know whether your association files IRS Form 1120, 1120A, or 1120H. When I became treasurer of our HOA, I noticed that our CPA filed one 1120A and four 1120Hs in the past five years. When I asked why he used different forms, he could not recall why he did this. If an HOA files Form 1120H, it will pay tax on interest income and other sources of revenue beyond fees at a flat rate of 30%. If the same HOA files Form 1120A, the first $50,000 of taxable income is taxed at a rate of 15%. This seems to be the preferable form to use. Your thoughts?