Question:
I am newly elected to our HOA Board in Tennessee as Treasurer. We have a HOA Property Manager who is supposed to take care of all bill paying, taxes, State Registration, etc. We pay them $700 per month.
I found invoices in the files from contractors who have performed work in the common areas – well over $600. The invoices were very poorly written, not even showing the company name nor specifics of work done, but our HOA Manager said they know them and have hired them for other properties they manage. When I asked to see the 1099-MISC or NEC’s for work they did the prior year, the HOA Manager said that they “lump them all together” for all the properties where they’ve performed work. Since I don’t write the checks from our HOA bank account, and the vendors are paid by the Property Manager from HOA dues received, can they do a lump 1099 for each vendor? How would I know if the proper amount was reported to the IRS for our HOA for each vendor if the Property Manager lumps it together with other work done elsewhere? Shouldn’t there be separate 1099″s for each HOA? Or is this standard practice?
– Jackie
Answer:
Hi Jackie,
Kindly review the contract terms to see whether your HOA is entitled to a report of all the forms they filed for your community.
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