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THE TAX MAN COMETH TODAY
By
Eric Glazer, Esq.
Published April 18, 2022
We got three extra days this year to pay up. Three extra days
to turn in our income tax forms and pay Uncle Sam. Instead of
April 15th being the day, it is April 18th.
We see it come out of our paycheck each week, we complain. We
fill out the necessary forms during tax season and we hope we
don’t receive a letter saying something about your friendly IRS
agent auditing you.
Just to remind you, your condo association or homeowners
association works the same way. It amazes me how many people
don’t understand it, but every association must file a tax
return every year, even if you are a not for profit one.
Your tax return is also like a summary of how good or bad your
last year was financially. Same thing with your year end
financial reports each association has to have prepared by the
end of April; either a compilation, review or audit depending
upon the size of the association’s budget. The report should
indicate how much monet=y n=came in and how it was spent.
Failure to file your return by April 18th will get
you in trouble with the IRS. Failure to prepare your year-end
financial report by the end of April will no doubt get you in
trouble with the DBPR, if you are a condominium. Trust me, I
have seen the DBPR unleash its wrath on associations who have
failed to prepare their reports on time. We’re talking the
imposition of fines seeking several thousand dollars.
In a condominium, you pay an additional tax. The owner of
each unit pays $4.00 per unit per year to the DBPR. All of
those funds are supposed to be spent on those who live in
condominiums and contribute the money. That’s just not the
case. Only about half gets spent. The other half gets swept
into the general revenue fund. It averages about $6,000,000
annually and could be put to good price and be responded to
more quickly.
Unit owners who generally wish to waive reserves can do so. No
such provision exists in the tax code. You’re going to be
paying for road repairs well in advance of them being
necessary. You have no say whatsoever at the HOA level.
And finally, failure to pay what’s due, when it’s due will only
create heart ache or heart burn. Either way, your house will be
sold at foreclosure sale. So bottom line, Keeps the assessments
rolling in or take a huge risk of you rolling out.
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About
HOA & Condo Blog
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Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
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Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric has been the host of Condo Craze
and HOAs, a weekly one hour radio show that airs at 11:00 a.m.
each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.
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