What IRS Form 1120-H (2015) Is For

IRS Form 1120-H (2015) is the U.S. Income Tax Return for Homeowners Associations that allows qualifying associations to take advantage of special tax benefits under Internal Revenue Code Section 528. This form enables homeowners associations—including condominium management associations, residential real estate associations, and timeshare associations—to exclude exempt function income (like membership dues and assessments) from their gross income and pay tax only on non-exempt income at a flat rate (IRS Instructions for Form 1120-H (2015)).

When You’d Use Form 1120-H for 2015 (Late or Amended Filing)

You would file a late or amended 2015 Form 1120-H if your homeowners association failed to file by the original due date of March 15, 2016, or if you need to correct a previously filed return. Common scenarios include receiving IRS notices about unfiled returns, discovering filing errors after submission, or realizing the association had taxable income that wasn’t properly reported.

Late filing may result in penalties and potential loss of eligibility to use Form 1120-H in future years, forcing the association to file the more complex Form 1120 instead. Note that the three-year refund statute may limit recovery of any overpayments for the 2015 tax year.

Key Rules Specific to 2015

• Flat tax rate of 30% for condominium management and residential real estate associations, and 32% for timeshare associations.
  
  
• Associations must pass the 60% gross income test and the 90% expenditure test.
  
  
• A $100 deduction is allowed against taxable income.
  
  
• The minimum late filing penalty was the smaller of the tax due or $135 for returns filed more than 60 days late.
  
  
• Form 1120-H could only be paper filed in 2015; no electronic filing option was available.
  
  

Step-by-Step (High Level)

• Gather tax transcripts: Request 2015 account transcripts from the IRS to check filings, notices, or penalties.
• Complete the 2015 form: Use the official 2015 Form 1120-H with the year-specific instructions.
• Attach required schedules: Add supporting schedules like Form 4136 for fuel tax credits, arranged in proper order.
• Mail to the IRS: File at the processing center listed for your location—no e-filing was available.
• Keep copies: Retain complete copies of the return and supporting documents for records and future reference.

Common Mistakes and How to Avoid Them

• Failing to meet the 60% income test or 90% expenditure test.
  
  
• Misclassifying exempt vs. taxable income.
  
  
• Forgetting the $100 deduction against taxable income.
  
  
• Applying the 30% or 32% tax rate incorrectly.
  
  
• Entering outdated EIN, address, or association information.
  
  
• Filing late without documenting reasonable cause for penalty relief.
  
  

What Happens After You File

The IRS generally takes several weeks to months to process a late-filed 2015 Form 1120-H. Associations may receive acknowledgment notices, penalty assessments, or requests for more information.

If tax is due, you may request a payment plan online for amounts under $25,000 or submit Form 9465 for larger balances. Penalties and interest accrue from the original due date. If you disagree with adjustments, you can appeal through the IRS Appeals Office. Monitoring account transcripts can help track IRS actions on the filing.

FAQs

Can I still file Form 1120-H for 2015 even though it’s years late?

Yes, but penalties apply. Filing late without reasonable cause may also cause the IRS to deny future use of Form 1120-H.

What penalties apply to a late 2015 Form 1120-H?

The penalty is 5% of unpaid tax per month (up to 25%), plus a minimum of $135 for returns filed more than 60 days late. Interest applies from the original due date.

How do I get IRS transcripts for my association’s 2015 tax year?

Request transcripts online via your IRS business account, by calling 800-908-9946, or by mailing Form 4506-T.

Can I still claim a refund for 2015?

Generally no. The three-year statute for refunds expired in 2019 unless an exception applies.

Do I need to amend my state return after filing a late federal Form 1120-H?

Possibly. State rules vary, and many require amended returns when federal returns are corrected or filed late.

Can my association arrange payment if we owe taxes for 2015?

Yes. Apply for an installment agreement online for balances under $25,000, or file Form 9465 for larger or more complex debts.

What if my association never filed any tax returns, including 2015?

File all missing years starting with the oldest. Multiple unfiled years may trigger large penalties and the loss of Form 1120-H eligibility.

‍