---
title: Condo association financial management and IRS Resolution 70-604
description: How does our condo association or HOA handle resolution 70-604 from the IRS?
---

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# Condo association financial management and IRS Resolution 70-604

| [Condo & HOA Assessments](https://www.condoassociation.com/blog/topic/condo-hoa-assessments) |   [Budgets & Finance](https://www.condoassociation.com/blog/topic/budgets-finance) |   [Condo Reserves](https://www.condoassociation.com/blog/topic/condo-reserves) |  

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## What do you think? Question:

I am newly elected to our condo association board and am learning the ropes, so to speak. I recently heard about [IRS Resolution 70-604](http://www.bishoppropertymanagement.com/admin/library/11155555.pdf). At our annual meeting, the [property manager](https://www.condoassociation.com/property-managers/tabid/96982/Default.aspx) asked for a voice vote on moving the year end excess to the Capital Reserve Account., citing Res. 70-604. I am confused and somewhat angry that somehow we always manage to roll over some excess, yet not even 2 months ago we had a [special assessment](https://www.condoassociation.com/blog/tabid/19257/bid/8267/About-Condo-Association-Special-Assessments.aspx) because there was simply no money to pay for an unexpected expense. This is a small [HOA](https://www.condoassociation.com/CondoAssociation/tabid/83434/Default.aspx) (30 units) and is only 7 years old, with a healthy reserve balance, and yet we've had 2 special assessments in the five years we've lived here. With well over $120k in the [reserve ](https://www.condoassociation.com/blog/tabid/19257/bid/8320/What-is-a-Condo-Association-Reserve.aspx)fund, I feel that we should pay our current bills before banking it all. Incidentally, the Capital Working Fund was absorbed into the Reserve Fund by an earlier board, even though it was to be in segregated accounts. That has never been rectified. Thanks for your input.

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## What do you think? Answers (7)

#### What are your thoughts on this topic?

***Comments and postings are not legal advice**, but are the opinions of our readers. This forum and its contents are being monitored. Please be respectful of each other. *  
  

## Related Posts

### [How Much Responsibility Do Condo Associations and HOAs Take For Repairs?](https://www.condoassociation.com/blog/tabid/19257/bid/9670/How-Much-Responsibility-Do-Condo-Associations-and-HOAs-Take-For-Repairs.aspx)

### [Condo association reserve funds are "tanked out"](https://www.condoassociation.com/blog/tabid/19257/bid/22445/Condo-association-reserve-funds-are-tanked-out.aspx)

### [How Good Condo Associations Can Lead to Increased Condo Value](https://www.condoassociation.com/blog/tabid/19257/bid/9549/How-Good-Condo-Associations-Can-Lead-to-Increased-Condo-Value.aspx)

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