WebThe IRS issued correspondence that indicates that the 70-604 election cannot be used two year’s in a row. Also, in the recent draft audit guide the ruling is consistently referred to as … WebRevenue Ruling 70-604 - Amon McCormack summarized the IRS 70-604 Resolution which pertains to the Association filing an 1120 tax form that allows the Association to carryover excess membership income over membership expenses to the next year without paying income tax on the excess. Amon made a
Condo association financial management and IRS Resolution 70 …
WebSep 29, 2024 · IRS revenue ruling 70-604 permits homeowners associations to avoid paying taxes on excess membership income. Taxation can be avoided by returning the excess to members or carrying the excess... Web70-604 is an IRS Revenue Ruling. Revenue Rulings are an official interpretation of the tax laws as determined by the IRS and have the effect of law, to the extent that a taxpayer who relies on a revenue ruling can't be penalized if the position turns out to be wrong. orchidee antony
Excess Income Resolution - Davis-Stirling
WebFeb 5, 2024 · IRS Ruling 70-604. There are no special requirements or actions required for those Associations that file Federal Form 1120H tax returns. They are just required to pay 30% tax on their “Non-Exempt Function (mostly interest) Income”. If an Association wants to file Federal Form 1120 as a technique to obtain the 15% tax rate on their “Non ... WebDec 31, 2004 · Revenue Ruling 70-604 provides guidance regarding the application of excess assessments to future assessments. The Revenue Ruling provides that this … WebThe IRS has not issued much in the way of official guidance on the use of Revenue Ruling 70-604, but based upon audit activity across the nation, informal communications with IRS personnel, and a draft audit guide for IRS auditors, we … orchidee annoeullin