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THE PERFECT DAY TO TALK TAXES AND YEAR-END FINANCIAL REPORTING
By
Eric Glazer, Esq.
Published April 15, 2019
It’s April 15th. That means by midnight tonight, you
better have your tax return in the mail. I have met with
several associations over the years that believe that simply
because their condominium or homeowner’s association is a not
for profit corporation, the association does not have to file a
federal tax return. That would be wrong. Every association is
required to file a federal tax return every year.
In addition to filing a federal tax return every association is
required to prepare a year end financial report by the end of
April, assuming that the association’s fiscal year starts
January 1st and ends December 31st.
Associations would be wise to take this responsibility very
seriously as failure of condominium associations to prepare year
end financial reports have resulted in many associations being
fined thousands of dollars by the Department of Business and
Professional Regulation.
By the way….if your association is not already under contract to
have the report prepared, you are already in violation of
Florida law. The type of year end financial report you must
file depends upon the amount of the association’s budget. The
larger the budget, the more detailed the report.
An association with total annual revenues of $150,000 or more,
but less than $300,000, shall prepare compiled financial
statements.
An association with total annual revenues of at least $300,000,
but less than $500,000, shall prepare reviewed financial
statements.
An association with total annual revenues of $500,000 or more
shall prepare audited financial statements.
An association with total annual revenues of less than $150,000
shall prepare a report of cash receipts and expenditures.
Not later than 120 days after the end of the fiscal year or
other date as provided in the bylaws, the association shall mail
to each unit owner at the address last furnished to the
association by the unit owner, or hand deliver to each unit
owner, a copy of the most recent financial report or a notice
that a copy of the most recent financial report will be mailed
or hand delivered to the unit owner, without charge, within 5
business days after receipt of a written request from the unit
owner.
The clock is ticking. If your year-end financial report is not
yet complete. You only have a few days left. Get to work.
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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 more than 2
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decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
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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