TAXES AND TAX RETURNS – WHAT YOU NEED TO KNOW

This year you can thank the Coronavirus for getting an extension on the filing of your tax return.  We normally know tax day to be April 15th.  This year it’s two days from now or July 15th.

Here is one thing you need to know.  All Florida community associations must file a federal tax return even though they are not for profit corporations.  You would be surprised how many associations don’t know that.  Often times boards believe that just because they prepared their year-end financial report, they did all they needed to do.  They are wrong, a return must be filed.

When else do tax returns come into play?  Often times community associations ask to see the tax returns of persons who seek to move into the community as a tenant or a purchaser of a unit or home.  Many times the Boards ask for the returns even when they ran a credit report and the owners are buying for cash.  So they why does the Board need to see the tax returns?  That’s what one judge wanted to know in Collier County and she was not happy.

To read a very interesting opinion about what one judge thought about having to supply tax returns, Click here.

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