IRS Form 1120-H U.S. Income Tax Return for Homeowners Associations

IRS Form 1120-H Instructions

The 1120-H Form must be signed and dated by the corporation's president, vice president, chief accounting officer, treasurer, assistant treasurer, or any corporate officer authorized to sign. In general, associations must file Form 1120-H by the 15th day of the 4th month after the end of their tax year, although there are some exceptions.

If a homeowners association doesn't file its tax return by the due date, including extensions, it does not only lose its right to elect to file Form 1120-H, but also may be imposed a penalty of 5% of the unpaid tax for each month or days the return is late, and up to a maximum of 25%. The minimum penalty for a return that is 60 or more days late is the tax due or $210, whichever is smaller. If the homeowners association can show that failure to file Form 1120-H on time was due to a reasonable cause, the penalty will not be imposed.

How to Fill Out IRS Form 1120-H?

1. Section 1. Period Covered.

2. Section 2. Name and Address. Enter the legal name and address of the association.

3. Section 3. Employer Identification Number (EIN). Enter the association's EIN.

4. Section 4. Association Date. Enter the date when the association was formed.

5. Section 5. Amended Return. Check the boxes that apply.

6. Section 6.

   • Item A. Type of the homeowners association. Check one of the three types, and refer to the IRS separate instructions for 1120-H form specifications;
   • Item B. 60% gross income test. At least 60% of the gross income for the tax year shall consist of exempt function income;
   • Item C. 90% expenditure test. At least 90% of the expenditures for the tax year must consist of expenses to acquire, manage, build, maintain, and care for the property;
   • Item D. Enter the total expenditures of the association for the tax year;
   • Item E. Enter any tax-exempt interest that was received or accrued.

7. Section 7. Gross Income. Enter the income amounts on each line, as per the form instructions.

8. Section 8. Deductions. On each line, enter the amounts for the appropriate corporation's costs and expenses directly connected to the production of gross income.

9. Section 9. Tax and Payments. Enter the applicable tax and payment amounts on each line.

IRS 1120-H Related Forms:

• 1120, U.S. Corporation Income Tax Return. The United States domestic corporations use this form to report their income, gains, losses, deductions, and credits, and to figure their income tax liability.
• 1120-C, U.S. Income Tax Return for Cooperative Associations. The American corporations operating on a cooperative basis use this form to report their income, gains, losses, deductions, and credits, and to calculate their income tax liability.
• 1120-F, U.S. Income Tax Return of a Foreign Corporation. Foreign corporations file this document to inform the IRS of their income, gains, losses, deductions, and credits, and to figure their U.S. income tax liability.
• 1120-S, U.S. Income Tax Return for an S Corporation. This is a form used to report the income, gains, losses, deductions, and credits of a domestic corporation or any other entity for any tax year covered by an election to be an S corporation.
• 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation. Foreign Sales Corporation (FSC) or small FSC use this form to report their income, deductions, losses, gains, credits, and income tax liability.
• 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return. This form is filed by interest charge domestic international sales corporations (IC-DISCs), former DISCs, and former IC-DISCs.
• 1120-POL, U.S. Income Tax Return for Certain Political Organizations. This form is filed by political organizations and certain exempt organizations to report their political organization taxable income and income tax liability section 527.
• 1120-L, U.S. Life Insurance Company Income Tax Return. Life insurance companies use this form to report income, gains, losses, deductions, and credits, and to figure their income tax liability.
• 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons. Nuclear decommissioning funds file this form to report income earned, contributions received, the administrative expenses of fund operation, the tax on modified gross income, as well as Section 4951 initial taxes.
• 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return. This form is filed to report the income, gains, losses, deductions, and credits, and to figure the income tax liability of insurance companies, apart from life insurance companies.
• 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts. Corporation, trusts, and associations electing to be treated as Real Estate Investment Trusts file this form to report their income, deductions, credits, gains, losses, certain penalties, and income tax liability.
• 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies. Regulated investment companies (RIC) file this form to report their income, deductions, gains, losses, credits, and to calculate their income tax liability.
• 1120-SF, U.S. Income Tax Return for Settlement Funds (under Section 468B). Qualified settlement funds file this form to report transfers received, income earned, deductions claimed, distributions made, and a designated or qualified settlement fund income tax liability.
• Form 1120-W, Estimated Tax for Corporations. Corporations use this form to estimate their tax liability and to figure the amount of their estimated tax payments.
• Form 1120-X, Amended U.S. Corporation Income Tax Return. This form is used by corporations to correct a Form 1120 (or Form 1120-A), a claim for refund, or an examination, and also, to make various elections after the due date.