Condo Q&A

Is there an HOA tax return to be filed?

Written by CondoAssociation.com | Sat, Jan 21, 2017 @ 12:11 PM
Question about HOA tax returns.  We fall into this category and never have surplus (almost always have special assessments):
 
  • Most of its HOA units are used by individuals as residences
  • It's organized and operated to buy, build, manage, maintain, and care for HOA property
  • At least 60% of its gross income for the taxable year comes from HOA membership dues, fees, or assessments
  • None of the HOA's net earnings or income goes to any individual, except if it's by a rebate of excess membership dues, fees, or assessments, for example
However, since our inception as an NPC, we just update our yearly report and haven't filed taxes. The original president/treasurer never did it or told anyone to do it.  Then he moved, and we've had two Treasurers since.  
 
So, we haven't filed taxes from 2010-2016.
 
What issues might we have?  This is Illinois.