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Old 12-24-2014, 09:47 AM
 
4,539 posts, read 5,289,917 times
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So I got appointed Condo Treasurer and my building has a new CPA, new Managing Agent and a new Lawyer. The prior Treasurer is no longer an owner.

I was told today that I will have to sign the tax returns. Someone from Board has to sign and since I am treasurer it makes sense for me to sign.

The Managing Agent or CPA wont sign.

Does this make sense and what are my legal liabilities. The building does have D&O insurance.

My wife is worried about liability and me getting sued if I sign.
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Old 12-24-2014, 10:08 AM
Status: "No deal is simple or easy" (set 25 days ago)
 
Location: Just south of Denver since 1989
11,403 posts, read 30,699,169 times
Reputation: 7910
The Board should have an insurance policy and have a CPA do the taxes for the HOA.
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Old 12-24-2014, 10:11 AM
 
Location: North Beach, MD on the Chesapeake
35,855 posts, read 45,994,259 times
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You're in New Jersey? Does your Board have an attorney on retainer? If so, ask him.

In Maryland the property manager and President of the Board sign documents. NJ may be different. Also, condos and HOAs here are required to have an attorney on retainer.
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Old 12-24-2014, 10:16 AM
 
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I am on the board I am the New Treasurer and this is NY. We have an attorney, we have a managing agent, we have a CPA. The CPA asked me to sign and Managing Agent wont.

Just want to know what is common. The CPA signed the financial statements. But this is the tax return.
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Old 12-25-2014, 12:07 PM
 
Location: Port Charlotte
3,927 posts, read 5,261,196 times
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Ask your condo attorney.
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Old 12-25-2014, 01:55 PM
 
Location: Georgia
4,574 posts, read 4,526,650 times
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Well, if the CPA prepared the forms, then there's a place for the CPA to sign as the preparer - why would the CPA refuse to sign their own work (assuming that the CPA prepared the forms)? Does the condo by-laws specify an officer to sign the tax returns? Often they do, or it's spelled out under the officers' duties.
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Old 12-25-2014, 03:55 PM
 
Location: Black Forest, CO
1,656 posts, read 2,476,481 times
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IRS rules :

http://www.irs.gov/pub/irs-pdf/i1120h.pdf

Who Must Sign
The return must be signed and datedby the president, vice-president,treasurer, assistant treasurer, chief accounting officer, or any other association officer (such as tax officer) authorized to sign.
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Old 12-25-2014, 06:40 PM
 
7,441 posts, read 9,184,750 times
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Whichever officer signs the return, they should be familiar with the information provided in the return and be able to vouch for its accuracy. Even if someone else is paid to fill out the return (and they need to sign the return as well), the officer signing is responsible for an accurate return.

But...it is the Board which is ultimately responsible for filing the tax return. All Board members should receive a draft copy of the return for review prior to it being signed and sent in to the IRS. Each Board member should have the opportunity to comment and make corrections as necessary.

I have signed plenty of tax returns for nonprofit corporations, but I would never sign a tax return unless I was satisfied that the tax filing was complete and accurate.
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Old 12-25-2014, 06:57 PM
 
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sounds good, I hired CPA and he is ex-big four and I gave him all the information. Only bad part it is a Compiled Return not Audited. But I had no choice as prior CPA and Managing Agent only provided quick book type data for a small portion of year so CPA could not 100% vouch.

It should be good as I redid it myself several times. It appears officers sign it.
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Old 12-25-2014, 10:31 PM
 
5,048 posts, read 7,755,892 times
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Quote:
Originally Posted by SandyJet View Post
sounds good, I hired CPA and he is ex-big four and I gave him all the information. Only bad part it is a Compiled Return not Audited. But I had no choice as prior CPA and Managing Agent only provided quick book type data for a small portion of year so CPA could not 100% vouch.

It should be good as I redid it myself several times. It appears officers sign it.
Question. I wonder why your CPA doesn't know the law beezle quoted. And your attorney. At any rate, since the board is insisting you sign it and not they, I wouldn't be the first signature on it. The whole thing sounds fishy to me.
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