Form 1120-H - U.s. Income Tax Return For Homeowners Associations

Form 1120-H (2005)

Page

If you do not have a preprinted Form

until the return is filed, Form 1120-H

The 2005 Form 1120-H can also

8109, use Form 8109-B to make

provides lines for estimated tax

be used if (a) the association has a

deposits. You can get this form by

payments and the crediting of

tax year of less than 12 months that

calling 1-800-829-4933 or visiting an

overpayments against estimated tax

begins and ends in 2006 and (b) the

2006 Form 1120-H is not available

IRS taxpayer assistance center.

if payments or overpayments apply.

Have your EIN ready when you call

at the time the association is

Interest and Penalties

or visit.

required to file its return.

The association must show its

Do not send deposits directly to

Interest. Interest is charged on

2006 tax year on the 2005 Form

an IRS office; otherwise, the

taxes paid late even if an extension

1120-H and take into account any

association may have to pay a

of time to file is granted. Interest is

tax law changes that are effective

penalty. Mail or deliver the

also charged on penalties imposed

for tax years beginning after 2005.

completed Form 8109 with the

for failure to file, negligence, fraud,

payment to an authorized depositary

substantial valuation misstatements,

Name and address. Print or type

(a commercial bank or other

substantial understatements of tax,

the association’s true name (as set

financial institution authorized to

and reportable transaction

forth in the charter or other legal

accept federal tax deposits). Make

understatements from the due date

document creating it), address, and

checks or money orders payable to

(including extensions) to the date of

EIN on the appropriate lines. Include

the depositary.

payment. The interest charge is

the suite, room, or other unit number

figured at a rate determined under

after the street address. If a

If you prefer, you may mail the

section 6621.

preaddressed label is used, include

coupon and payment to: Financial

this information on the label. If the

Agent, Federal Tax Deposit

Late filing of return. In addition to

Post Office does not deliver mail to

Processing, P.O. Box 970030, St.

losing the right to elect to file Form

the street address and the

Louis, MO 63197. Make the check

1120-H, a homeowners association

association has a P.O. box, show

or money order payable to “Financial

that does not file its tax return by

the box number instead.

Agent.”

the due date, including extensions,

may be penalized 5% of the unpaid

If the association receives its mail

To help ensure proper crediting,

tax for each month or part of a

in care of a third party (such as an

enter the association’s EIN, the tax

month the return is late, up to a

accountant or an attorney), enter on

period to which the deposit applies,

maximum of 25% of the unpaid tax.

the street address line “C/O”

and “Form 1120-H” on the check or

The minimum penalty for a return

followed by the third party’s name

money order. Darken the “1120” box

that is over 60 days late is the

and street address or P.O. box.

under “Type of Tax” and the

smaller of the tax due or $100. The

appropriate “Quarter” box under

Employer identification number

penalty will not be imposed if the

“Tax Period” on the coupon.

(EIN). Enter the association’s EIN. If

association can show that the failure

Records of these deposits will be

the association does not have an

to file on time was due to

sent to the IRS. For more

EIN, it must apply for one. An EIN

reasonable cause. Associations that

information, see “Marking the Proper

may be applied for:

file late should attach a statement

Tax Period” in the instructions for

● Online—Click on the EIN link at

explaining the reasonable cause.

Form 8109.

The

Late payment of tax. An

For more information on deposits,

EIN is issued immediately once the

association that does not pay the

see the instructions in the coupon

application information is validated.

tax when due generally may be

booklet (Form 8109) and Pub. 583,

● By telephone at 1-800-829-4933

penalized

⁄

of 1% of the unpaid

Starting a Business and Keeping

from 8:00 a.m. to 8:00 p.m. in the

tax for each month or part of a

Records.

association’s local time zone.

month the tax is not paid, up to a

Caution: If the association owes tax

● By mailing or faxing Form SS-4,

maximum of 25% of the unpaid tax.

when it files Form 1120-H, do not

Application for Employer

The penalty will not be imposed if

include the payment with the tax

Identification Number.

the association can show that the

return. Instead, mail or deliver the

failure to pay on time was due to

If the association has not received

payment with Form 8109 to an

reasonable cause.

its EIN by the time the return is due,

authorized depositary, or use EFTPS,

write “Applied for” in the space for

Other penalties. Other penalties

if applicable.

the EIN. For more details, see Pub.

can be imposed for negligence,

583, Starting a Business and

substantial understatement of tax,

Estimated Tax, Alternative

Keeping Records.

reportable transaction

Minimum Tax, and Certain

understatements, and fraud. See

Note. The online application process

Tax Credits

sections 6662, 6662A and 6663.

is not yet available for associations

These items do not apply to

with addresses in foreign countries

Specific Instructions

homeowners associations electing to

or Puerto Rico.

file Form 1120-H. See the

Period covered. File the 2005 return

Final return, name change,

instructions for line 21, later, for a

for calendar year 2005, and fiscal

address change, or amended

list of the tax credits that do not

years that begin in 2005 and end in

return.

apply. However, a homeowners

2006. For a fiscal year return, fill in

● If the association ceases to exist,

association that does not elect to

the tax year space at the top of the

file Form 1120-H and check the

file Form 1120-H may be required to

form.

“Final return” box.

make payments of estimated tax.

Because the election is not made

Form 1120-H - U.s. Income Tax Return For Homeowners Associations - 2005 Page 4

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