Instructions For Form 1120-H - 2008 (Page 4 of 5) in pdf

estimated tax payments) with Form 8109,

if the association can show that the failure

If the association has not received its

Federal Tax Deposit Coupon. If you do

to file on time was due to reasonable

EIN by the time the return is due, enter

not have a preprinted Form 8109, use

cause. Associations that file late should

“Applied for” and the date you applied in

Form 8109-B to make deposits. You can

attach a statement explaining the

the space for the EIN. For more details,

get this form by calling 1-800-829-4933 or

reasonable cause.

see the Instructions for Form SS-4.

visiting an IRS taxpayer assistance

Note. Only associations located in the

Late payment of tax. An association

center. Have your EIN ready when you

United States or U.S. possessions can

that does not pay the tax when due

call or visit.

use the online process.

generally may be penalized

of 1% of

Do not send deposits directly to an IRS

the unpaid tax for each month or part of a

Final return, name change, address

office; otherwise, the association may

month the tax is not paid, up to a

change, or amended return.

have to pay a penalty. Mail or deliver the

maximum of 25% of the unpaid tax. The

•

If the association ceases to exist, file

completed Form 8109 with the payment

penalty will not be imposed if the

Form 1120-H and check the “Final return”

to an authorized depositary (a commercial

association can show that the failure to

box.

bank or other financial institution

pay on time was due to reasonable

•

If the association changed its name

authorized to accept federal tax deposits).

cause.

since it last filed a return, check the box

Make checks or money orders payable to

Other penalties. Other penalties can be

for “Name change.”

the depositary.

•

imposed for negligence, substantial

If the association has changed its

If the association prefers it can mail

understatement of tax, reportable

address since it last filed a return

the coupon and payment to: Financial

transaction understatements, and fraud.

(including a change to an “in care of”

Agent, Federal Tax Deposit Processing,

See sections 6662, 6662A, and 6663.

address), check the box for “Address

P.O. Box 970030, St. Louis, MO 63197.

change.”

•

Make the check or money order payable

To amend a previously filed Form

Specific Instructions

to “Financial Agent.”

1120-H, file a corrected Form 1120-H and

check the “Amended return” box.

Period covered. File the 2008 return for

To help ensure proper crediting, enter

calendar year 2008, and fiscal years that

Note. If a change in address occurs after

the association’s EIN, the tax period to

begin in 2008 and end in 2009. For a

which the deposit applies, and “Form

the return is filed, use Form 8822,

fiscal or short tax year return, fill in the tax

1120-H” on the check or money order.

Change of Address, to notify the IRS of

year space at the top of the form.

Darken the “1120” box under “Type of

the new address.

Tax” and the appropriate “Quarter” box

The 2008 Form 1120-H can also be

Item A. Type of homeowners

under “Tax Period” on the coupon.

used if (a) the association has a tax year

association. See Definitions on page 2.

Records of these deposits will be sent to

of less than 12 months that begins and

Item B. 60% gross income test. At

the IRS. For more information on

ends in 2009 and (b) the 2009 Form

least 60% of the association’s gross

deposits, see the instructions in the

1120-H is not available at the time the

income for the tax year must consist of

coupon booklet (Form 8109).

association is required to file its return.

exempt function income. See Exempt

The association must show its 2009

function income on page 2.

Estimated Tax and

tax year on the 2008 Form 1120-H and

Item C. 90% expenditure test. At least

Alternative Minimum Tax

take into account any tax law changes

90% of the association’s expenditures for

that are effective for tax years beginning

These items do not apply to homeowners

the tax year must consist of expenses to

after December 31, 2008.

associations electing to file Form 1120-H.

acquire, build, manage, maintain, and

However, a homeowners association that

Name and address. Enter the

care for property, and in the case of a

does not elect to file Form 1120-H may be

association’s true name (as set forth in

timeshare association, for activities

required to make payments of estimated

the charter or other legal document

provided to, or on behalf of, members of

tax. Because the election is not made

creating it), address, and EIN on the

the timeshare association. Include current

until the return is filed, Form 1120-H

appropriate lines. Include the suite, room,

and capital expenditures. Use the

provides lines for estimated tax payments

or other unit number after the street

association’s accounting method to figure

and the crediting of overpayments against

address. If a preaddressed label is used,

the total.

tax if estimated tax payments or

include this information on the label. If the

Include:

overpayments apply.

post office does not deliver mail to the

1. Salary for an association manager

street address and the association has a

or secretary.

Interest and Penalties

P.O. box, show the box number instead.

2. Expenses for gardening, paving,

If the association receives its mail in

Interest. Interest is charged on taxes

street signs, security guards, and property

care of a third party (such as an

paid late even if an extension of time to

taxes assessed on association property.

accountant or an attorney), enter on the

file is granted. Interest is also charged on

3. Current operating and capital

street address line “C/O” followed by the

penalties imposed for failure to file,

expenditures for tennis courts, swimming

third party’s name and street address or

negligence, fraud, substantial valuation

pools, recreation halls, etc.

P.O. box.

misstatements, substantial

4. Replacement costs for common

understatements of tax, and reportable

buildings, heating, air conditioning,

Employer identification number (EIN).

transaction understatements from the due

elevators, etc.

Enter the association’s EIN. If the

date (including extensions) to the date of

association does not have an EIN, it must

payment. The interest charge is figured at

Do not include expenditures for

apply for one. An EIN may be applied for:

•

a rate determined under section 6621.

property that is not association property.

Online — Click on the EIN link at

Also, do not include investments or

Late filing of return. In addition to

The EIN is

transfers of funds held to meet future

losing the right to elect to file Form

issued immediately once the application

costs. An example would be transfers to a

1120-H, a homeowners association that

information is validated.

•

sinking fund to replace a roof, even if the

does not file its tax return by the due date,

By telephone at 1-800-829-4933 on

roof is association property.

including extensions, may be penalized

Monday through Friday from 7:00 a.m. to

5% of the unpaid tax for each month or

10:00 p.m. in the association’s local time

Item D. Enter the association’s total

part of a month the return is late, up to a

zone (Alaska and Hawaii follow Pacific

expenditures for the tax year including

maximum of 25% of the unpaid tax. The

time).

those expenditures directly related to

•

minimum penalty for a return that is over

By mailing or faxing Form SS-4,

exempt function income. Use the

60 days late is the smaller of the tax due

Application for Employer Identification

association’s accounting method to figure

or $135. The penalty will not be imposed

Number.

the entry for item D.

-4-

Instructions for Form 1120-H

Instructions For Form 1120-H - 2008 Page 4

Related Articles

Related forms

Related Categories