THE PERFECT DAY TO TALK TAXES AND YEAR-END FINANCIAL REPORTING

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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