What is the name of your state? Nevada.
We have a voluntary HOA where there is no income other than voluntary dues and that there is no common property owned and/or maintained by the association.
In addition, it doesn't engage in exterior maintenance of private homes. It does enforce covenants to preserve the appearance of the development and it is operated for the benefit of all the residents of the community.
We recently consulted an accountant who claims that we cannot obtain tax exempt status under 501(a), specifically as a 501(c)(4). He states:
“...Homeowner's associations are not Non-profit organizations as defined under IRS statutes. Social and Welfare organizations under 501(c)(4) are not the same as homeowner's associations, these are often programs designed at helping needy families and children. Currently, Homeowner's associations are registered with the IRS as a corporation and file an 1120-H tax return in order to be exempt from tax with the IRS. “ This appears to disagree with Publication 557, which lists Homeowner's associations as an example. Who is right?
We have a voluntary HOA where there is no income other than voluntary dues and that there is no common property owned and/or maintained by the association.
In addition, it doesn't engage in exterior maintenance of private homes. It does enforce covenants to preserve the appearance of the development and it is operated for the benefit of all the residents of the community.
We recently consulted an accountant who claims that we cannot obtain tax exempt status under 501(a), specifically as a 501(c)(4). He states:
“...Homeowner's associations are not Non-profit organizations as defined under IRS statutes. Social and Welfare organizations under 501(c)(4) are not the same as homeowner's associations, these are often programs designed at helping needy families and children. Currently, Homeowner's associations are registered with the IRS as a corporation and file an 1120-H tax return in order to be exempt from tax with the IRS. “ This appears to disagree with Publication 557, which lists Homeowner's associations as an example. Who is right?