Question:
Ours is a small HOA consisting of 18 homes in South Carolina. Each home pays $150 per year.
We are fairly new here (3 years) and don’t think they’ve ever filed an annual tax report yet they collect funds and pay bills for maintenance and lighting. Is it possible to get a copy of the IRS file tax return(s)?
There have been 1 annual meeting per year thus far. The self appointed treasurer has yet to provide any financial report of income and expenditures giving us reason to suspect something is not right.
Thank you in advance!
– Joanne
Answer:
Hi Joanne,
Yes, homeowners in South Carolina have the right to request financial records from the HOA. Under the South Carolina Nonprofit Corporation Act (Section 33-31-1602), members of a nonprofit corporation are entitled to inspect and copy accounting records, which can include tax filings, if they have a proper purpose related to their interest as members. Most HOAs are organized as nonprofit corporations, which means they are subject to this law.
You can request copies of IRS tax returns by submitting a written request to the HOA board or treasurer. If your HOA has not filed a tax return since its conception and is a nonprofit corporation, there may be consequences. Consider bringing up the issue at the next board meeting.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
