In most states, HOAs are registered non-profits and are required to file Federal and State taxes. Additionally, some Associations governing documents stipulate an annual financial review or audit be completed.
Financial reviews and audits do differ; however, they achieve the same goal. That is to have an independent, licensed CPA review the Association’s financials and the accounting practices of its management company.
As part of the Sharper Management family, our staff works hard behind the scenes to provide any engaged CPA firm with the required materials. Bank statements, reports, invoices, etc. all must be provided.
Be ready for your manager to ask for the Treasurer’s signature on tax docs. And lastly, know that it is very common for the CPA to file tax extensions, as reviews/audits are an involved process and can take time.