HomeMy WebLinkAboutF-HOA-IRS Form 1120-H-2024-Tax Return Instructions 2024 0AIRS
Instructions for
Form 1120-H
U.S. Income Tax Return for Homeowners Associations
Section references are to the Internal Revenue Code knows of one of these broad issues, report it to TAS
unless otherwise noted. through the Systemic Advocacy Management System at
Future Developments IRS.gov/SAMS.
For the latest information about developments related to For more information, go to TaxpayerAdvocate.IRS.gov.
Form 1120-H and its separate instructions, such as How To Get Forms and Publications
legislation enacted after they were published, go to
IRS.gov/Form1120H. Internet. You can access the IRS website 24 hours a day,
7 days a week, at IRS.goovto:
What's New • Download forms, instructions, and publications;
Increase in penalty for failure to file. For tax returns • Order IRS products online;
required to be filed in 2025,the minimum penalty for • Research your tax questions online;
failure to file a return that is over 60 days late has been • Search publications online by topic or keyword; and
increased to the smaller of the tax due or$510. See Late • Sign up to receive local and national tax news by email.
filing of return, later. Tax forms and publications. The association can
Electronic filing. Beginning in January 2025, download or print all of the forms and publications it may
associations will be able to file Form 1120-H electronically. need on IRS.gov/Forms.
See Electronic Filing, later. Otherwise,the association can go to IRS.gov/
Photographs of Missing Child OrderForms to place an order and have forms mailed to it.
g Children The IRS will process your order for forms and publications
The IRS is a proud partner with the National Center for as soon as possible.
Missing&Exploited Children®(NCMEC). Photographs of
missing children selected by the Center may appear in General Instructions
instructions on pages that would otherwise be blank.You
can help bring these children home by looking at the Purpose of Form
photographs and calling 1-800-THE-LOST A homeowners association files Form 1120-H as its
(1-800-843-5678) if you recognize a child. income tax return to take advantage of certain tax
The Taxpayer Advocate Service benefits.These benefits, in effect, allow the association to
The Taxpayer Advocate Service (TAS) is an independent exclude exempt function income (defined later)from its
organization within the IRS that helps taxpayers and gross income.
protects taxpayer rights.TAS strives to ensure that every Electing To File Form 1120-H
taxpayer is treated fairly and that you know and A homeowners association elects to take advantage of the
understand your rights under the Taxpayer Bill of Rights. tax benefits provided by section 528 by filing a properly
As a taxpayer, the association has rights that the IRS completed Form 1120-H.The election is made separately
must abide by in its dealings with the association.TAS can for each tax year and must generally be made by the due
help the association if: date, including extensions, of the income tax return.
• A problem is causing financial difficulty for the This extension does not extend the time to pay the tax.
association;
• The association is facing immediate threat of adverse Once Form 1120-H is filed, the association cannot
action; or revoke its election for that year unless the IRS consents.
• The association has tried repeatedly to contact the IRS The association may request IRS consent by filing a ruling
but no one has responded, or the IRS hasn't responded request. A user fee must be paid with all ruling requests.
by the date promised. For more information on ruling requests, see Rev. Proc.
TAS has offices in every state,the District of Columbia, 2024-1, 2024-1 I.R.B. 1 (or any successor), available at
and Puerto Rico. Local advocates' numbers are in their IRS.gov/irb/2024-01 IRB#RP-2024-01.
local directories and at TaxpayerAdvocate.IRS.gov/ If the association does not elect to use Form 1120-H, it
Contact-Us.The association can also call TAS at must file the applicable income tax return,for example,
877-777-4778. Form 1120, U.S. Corporation Income Tax Return.
TAS also works to resolve large-scale or systemic A homeowners association should compare its total tax
problems that affect many taxpayers. If the association computed on Form 1120-H with its total tax computed on
Instructions for Form 1120H(2024) Catalog Number 24935G
Dec 20,2024 Department of the Treasury Internal Revenue Service www.irs.gov
Form 1120.The association may file the form that results management associations and residential real estate
in the lowest tax. management associations.
Automatic 12-month extension to make election. If To qualify as a homeowners association, the following
the homeowners association fails to make the regulatory must apply.
election to be treated as a homeowners association, it can • At least 60%of the association's gross income for the
get an automatic 12-month extension to make the section tax year must consist of exempt function income (defined
528 election, provided corrective action is taken within 12 later).
months of the due date (including extension)of the return. • At least 90%of the association's expenses for the tax
See Regulations section 301.9100-2 for more information. year must consist of expenses to acquire, build, manage,
maintain, and care for its property, and, in the case of a
Tax rate. The taxable income of a homeowners timeshare association,for activities provided to, or on
association that files its tax return on Form 1120-H is behalf of, members of the timeshare association.
taxed at a flat rate of 30%for condominium management No private shareholder or individual can profit from the
associations and residential real estate management association's net earnings except by acquiring, building,
associations.The tax rate for timeshare associations is managing, maintaining, or caring for association property
32%.These rates apply to both ordinary income and or by a rebate of excess membership dues,fees, or
capital gains. assessments.
If the association is tax exempt under section 501(a), • The association must file Form 1120-H to elect under
do not file Form 1120-H. See section 6033 and related section 528 to be treated as a homeowners association.
regulations. If the association loses its exempt status, see Association property. Association property includes
Regulations section 1.528-8(e).
real and personal property that:
Electronic Filing 1. The association holds,
Associations can generally electronically file (e-file) Form 2. The association's members hold in common,
1120-H, related forms, schedules, and attachments; Form 3. The association's members hold privately within the
7004(automatic extension of time to file); and Forms 940, association, and
941, and 944(employment tax returns). If there is a
balance due,the association can authorize an electronic 4. Is owned by a governmental unit and is used to
funds withdrawal while e-filing. Form 1099 and other benefit the unit's residents.
information returns can also be electronically filed.The Timeshare association property includes property
option to e-file does not, however, apply to certain returns. related to the timeshare project that the association or its
Associations are required to a-file Form 1120-H if the members have rights to use.These rights must arise out
association files 10 or more returns of any type during the of recorded easements, covenants, or other recorded
calendar year(including income tax, employment tax, instruments.
excise tax, and information returns). See Regulations For more information, see Regulations section 1.528-3.
section 301.6011-5. However,these associations can Taxable income. Taxable income is the excess, if any, of:
request a waiver of the electronic filing requirements.
1. Gross income for the tax year, excluding exempt
For more information on e-filing, see E-file for Business function income, over
and Self-employed Taxpayers on IRS.gov. 2. Allowed deductions directly connected with
Definitions producing any gross income except exempt function
income. Allowed deductions include a specific$100
Homeowners association. There are three types of deduction.The following are not allowed.
homeowners associations. • Net operating loss deduction (section 172).
1. A condominium management association organized • Deductions under Part VIII of subchapter B(special
and operated to acquire, build, manage, maintain, and deductions for corporations).
care for the property in a condominium project If facilities are used (or personnel are employed)for
substantially all of whose units are homes for individuals. both exempt and nonexempt purposes, see Regulations
2. A residential real estate management association section 1.528-10.
organized and operated to acquire, build, manage, Exempt function income. Exempt function income
maintain, and care for a subdivision, development, or consists of membership dues,fees, or assessments from
similar area substantially all of whose lots or buildings are (a) owners of condominium housing units; (b)owners of
homes for individuals. real property in the case of a residential real estate
3. A timeshare association (other than a condominium management association; or(c)owners of timeshare
management association) organized and operated to rights to use, or timeshare ownership interests in, real
acquire, build, manage, maintain, and care for the property in the case of a timeshare association.This
property that has members who hold a timeshare right to income must come from the members as owners, not as
use, or a timeshare ownership interest in, real property of customers, of the association's services.
the timeshare association. A timeshare association cannot Assessments or fees for a common activity qualify but
be a condominium management association. charges for providing services don't qualify.
See Regulations section 1.528-4 for information
regarding the"substantially all"test for condominium
2 Instructions for Form 1120-H (2024)
Examples. In general, exempt function income includes The PDS can tell you how to get written proof of the
assessments made to: mailing date.
1. Pay principal, interest, and real estate taxes on For the IRS mailing address to use if you are using a
association property; PDS, go to IRS.gov/PDSStreetAddresses.
2. Maintain association property; and PDSs can't deliver items to P.O. boxes. You must
3. Clear snow from public areas and remove trash. use the U.S. Postal Service to mail any item to an
IRS P.O. box address.
Income that is not exempt function income includes:
1. Amounts that are not includible in the organization's Extension. File Form 7004,Application for Automatic
gross income other than under section 528(for example, Extension of Time To File Certain Business Income Tax,
tax-exempt interest); Information, and Other Returns,to request an extension of
2. Payments from nonmembers; time to file. Generally,the association must file Form 7004
by the regular due date of the return. See the Instructions
3. Payments from members for special use of the for Form 7004.
organization's facilities, apart from the use generally
available to all members; If the association elects to file Form 1120-H, it
E3 should file for extension on Form 7004 using the
4. Interest on amounts in a sinking fund; original form type assigned to the entity.
5. Payments for work done on nonassociation
property; and Who Must Sign
6. Members' payments for transportation. The return must be signed and dated by the president,
For more information, see Regulations section 1.528-9. vice president,treasurer, assistant treasurer, chief
accounting officer, or any other association officer(such
When To File as tax officer) authorized to sign.
Generally, an association must file Form 1120-H by the If a return is filed on behalf of an association by a
15th day of the 4th month after the end of its tax year. receiver, trustee, or assignee, the fiduciary must sign the
However, an association with a fiscal year ending June return, instead of the association officer. Returns and
30 must file by the 15th day of the 3rd month after the end forms signed by a receiver or trustee in bankruptcy on
of its tax year. An association with a short tax year ending behalf of an association must be accompanied by a copy
any time in June will be treated as if the short year ended of the order or instructions of the court authorizing signing
on June 30, and must file by the 15th day of the 3rd month of the return or form.
after the end of its tax year. If an association officer completes Form 1120-H,the
If the due date falls on a Saturday, Sunday, or legal paid preparer space should remain blank. Anyone who
holiday, the association may file on the next business day. prepares Form 1120-H but doesn't charge the association
should not complete that section. Generally, anyone who
Private delivery services (PDSs). Associations can is paid to prepare the return must sign it and fill in the
use certain PDSs designated by the IRS to meet the "Paid Preparer Use Only"area.
"timely mailing as timely filing/paying" rule for tax returns. The paid preparer must complete the required preparer
Go to IRS.gov/PDS for the current list of designated information and:
services. • Sign the return in the space provided for the preparer's
signature, and
Where To File
File the association's return at the address listed below.
If the association's principal business,office,or agency is located Use the following address:
in:
Connecticut,Delaware,District of Columbia,Georgia,Illinois,Indiana, Department of the Treasury
Kentucky,Maine,Maryland,Massachusetts,Michigan,New Hampshire, Internal Revenue Service Center
New Jersey,New York,North Carolina,Ohio,Pennsylvania,Rhode Kansas City,MO
Island,South Carolina,Tennessee,Vermont,Virginia,West Virginia, 64999-0012
Wisconsin
Alabama,Alaska,Arizona,Arkansas,California,Colorado,Florida, Department of the Treasury
Hawaii,Idaho,Iowa,Kansas,Louisiana,Minnesota,Mississippi, Internal Revenue Service Center
Missouri,Montana,Nebraska,Nevada,New Mexico,North Dakota, Ogden,UT 84201-0012
Oklahoma,Oregon,South Dakota,Texas,Utah,Washington,Wyoming
A foreign country or U.S.territory Internal Revenue Service Center
P.O.Box 409101
Ogden,UT 84409
Instructions for Form 1120-H (2024) 3
• Give a copy of the return to the taxpayer. 6. Additional forms in numerical order.
Note. A paid preparer may sign the original or amended 7. Supporting statements and attachments.
returns by rubber stamp, mechanical device, or computer Complete every applicable entry space on Form
software program. 1120-H. Do not enter"See Attached"or"Available Upon
Paid Pre parer Authorization Request" instead of completing the entry spaces. If more
p space is needed on the forms or schedules, attach
If the association wants to allow the IRS to discuss its separate sheets using the same size and format as the
2023 tax return with the paid preparer who signed it, printed forms. If there are supporting statements and
check the"Yes"box in the signature area of the return. attachments, arrange them in the same order as the
This authorization applies only to the individual whose schedules or forms they support and attach them last.
signature appears in the"Paid Preparer Use Only"section Show the totals on the printed forms. Enter the
of the return. It doesn't apply to the firm, if any, shown in association's name and employer identification number
that section. (EIN) on each supporting statement or attachment.
If the"Yes"box is checked,the association is Accounting Methods
authorizing the IRS to call the paid preparer to answer any Figure taxable income using the method of accounting
questions that may arise during the processing of its
regularly used in keeping the association's books and
return.The association is also authorizing the paid records. In all cases,the method used must clearly show
preparer to: taxable income. Permissible methods include cash,
• Give the IRS any information that is missing from the accrual, or any other method authorized by the Internal
return; Revenue Code.
• Call the IRS for information about the processing of the
return or the status of any related refund or payment(s); Change in accounting method. Generally,the
and association must get IRS consent to change either an
• Respond to certain IRS notices about math errors, overall method of accounting or the accounting treatment
offsets, and return preparation. of any material item. To do so, the association must
generally file Form 3115,Application for Change in
The association isn't authorizing the paid preparer to Accounting Method. See the Instructions for Form 3115
receive any refund check, bind the association to anything and Pub. 538,Accounting Periods and Methods,for more
(including any additional tax liability), or otherwise information and exceptions.
represent the association before the IRS.
Change of Tax Year
The authorization will automatically end no later than Generally, an association must get the consent of the IRS
the due date(excluding extensions)for filing the
association's 2024 tax return. If the association wants to before changing its tax year by filing Form 1128,
expand the paid preparer's authorization, see Pub. 947, Application To Adopt, Change, or Retain a Tax Year.
Practice Before the IRS and Power of Attorney. However, under certain conditions, an association can
change its tax year without getting the consent.
Other Forms and Statements That For more information on change of tax year, see the
May Be Required Instructions for Form 1128 and Pub. 538.
See the Instructions for Form 1120 and Pub. 542, Rounding Off to Whole Dollars
Corporations,for a list of other forms and statements the
association may be required to file. You may enter decimal points and cents when completing
your return. However,you should round off cents to whole
Qualified opportunity investment. If you deferred a dollars on your return,forms, and schedules to make
capital gain in a qualified opportunity fund (QOF), you completing your return easier.You must either round off all
must file your return with Schedule D (Form 1120), Capital amounts on your return to whole dollars, or use cents for
Gains and Losses; Form 8949, Sales and Other all amounts.To round, drop amounts under 50 cents and
Dispositions of Capital Assets; and Form 8997, Initial and increase amounts from 50 to 99 cents to the next dollar.
Annual Statement of Qualified Opportunity Fund (QOF) For example, $8.40 rounds to$8 and $8.50 rounds to$9.
Investments, attached.You will need to file Form 8997
annually until you dispose of the investment. See the Form If you have to add two or more amounts to figure the
8997 instructions. amount to enter on a line, include cents when adding the
Assembling the Return amounts and round off only the total.
To ensure that the association's tax return is correctly Payment of Tax (Line 24)
processed, attach all forms and schedules after Form The association must pay any tax due in full no later than
1120-H in the following order. the due date for filing its tax return (not including
1. Form 4136. extensions). Do not include the payment with the tax
2. Form 8978. return. However, see Line 24. Amount owed, later.
3. Form 8941. Electronic deposit requirement. Associations must use
electronic funds transfers(EFTs)to make all federal tax
4. Form 3800. deposits (such as deposits of employment, excise, and
5. Schedules in alphabetical order. income tax). Generally, EFTs are made using the
4 Instructions for Form 1120-H (2024)
Electronic Federal Tax Payment System (EFTPS). each month or part of a month the return is late, up to a
However, if the association doesn't want to use EFTPS, it maximum of 25%of the unpaid tax.The minimum penalty
can arrange for its tax professional,financial institution, for a return that is over 60 days late is the smaller of the
payroll service, or other trusted third party to make tax due or$510.The penalty will not be imposed if the
deposits on its behalf. Also, it may arrange for its financial association can show that the failure to file on time was
institution to initiate a same-day wire payment(discussed due to reasonable cause.
below) on its behalf. EFTPS is a free service provided by Late payment of tax. An association that doesn't pay
the Department of the Treasury. Services provided by a the tax when due may generally be penalized 1/2 of 1%of
tax professional,financial institution, payroll service, or the unpaid tax for each month or part of a month the tax
other third party may have a fee. isn't paid, up to a maximum of 25%of the unpaid tax. The
To get more information about EFTPS or to enroll in penalty will not be imposed if the association can show
EFTPS, go to EFTPS.gov, or call 800-555-4477. To that the failure to pay on time was due to reasonable
contact EFTPS using Telecommunications Relay Services cause.
(TRS)for people who are deaf, hard of hearing, or have a
speech disability, dial 711 and then provide the TRS Reasonable-cause determinations. If the association
assistant the 800-555-4477 number above or receives a notice about a penalty after it files its return,
800-733-4829. Additional information about EFTPS is also send the IRS an explanation and we will determine if the
available in Pub. 966. association meets the reasonable-cause criteria. Do not
attach an explanation when the association's return is
Depositing on time. For deposits made by EFTPS to be filed.
on time,the association must submit the deposit by 8 p.m.
Eastern time the day before the date the deposit is due. If Other penalties. Other penalties can be imposed for
the association uses a third party to make deposits on its negligence, substantial understatement of tax, reportable
behalf, they may have different cutoff times. transaction understatements, and fraud. See sections
6662, 6662A, and 6663.
Same-day wire payment option. If the association fails
to submit a deposit transaction on EFTPS by 8 p.m. Specific Instructions
Eastern time the day before the date a deposit is due, it p
can still make its deposit on time by using the Federal Tax Period covered. File the 2024 return for calendar year
Collection Service (FTCS).To use the same-day wire 2024, and fiscal years that begin in 2024 and end in 2025.
payment method, the association will need to make For a fiscal or short tax year return,fill in the tax year
arrangements with its financial institution ahead of time. space at the top of the form.
Check with the financial institution regarding availability, The 2024 Form 1120-H can also be used if(a)the
deadlines, and costs. Financial institutions may charge a association has a tax year of less than 12 months that
fee for payments made this way. To learn more about the begins and ends in 2025, and (b)the 2025 Form 1120-H
information you will need to provide your financial isn't available at the time the association is required to file
institution to make a same-day wire payment, go to its return.
IRS.gov/SameDayWire.
The association must show its 2025 tax year on the
Estimated Tax 2024 Form 1120-H and take into account any tax law
The estimated tax and alternative minimum tax changes that are effective for tax years beginning after
requirements do not apply to homeowners associations December 31, 2024.
electing to file Form 1120-H. However, a homeowners Name and address. Enter the association's true name
association that does not elect to file Form 1120-H may be (as set forth in the charter or other legal document
required to make payments of estimated tax. Because the creating it), address, and EIN on the appropriate lines.
election is not made until the return is filed, Form 1120-H Include the suite, room, or other unit number after the
provides lines for estimated tax payments and the street address. If the post office doesn't deliver mail to the
crediting of overpayments against tax if estimated tax street address and the association has a P.O. box, show
payments or overpayments apply. the box number instead.
Interest and Penalties If the association receives its mail in care of a third
party(such as an accountant or an attorney), enter on the
Interest. Interest is charged on taxes paid late even if an street address line"C/O"followed by the third party's
extension of time to file is granted. Interest is also charged name and street address or P.O. box.
on penalties imposed for failure to file, negligence,fraud, If the association has a foreign address, include the city
substantial valuation misstatements, substantial or town, state or province, country, and foreign postal
understatements of tax, and reportable transaction code. Do not abbreviate the country name. Follow the
understatements from the due date (including extensions) country's practice for entering the name of the state or
to the date of payment.The interest charge is figured at a province and postal code.
rate determined under section 6621.
Late filing of return. In addition to losing the right to Employer identification number (EIN). Enter theassociation's EIN. If the association doesn't have an EIN,
elect to file Form 1120-H, a homeowners association that doesn't file its tax return by the due date, including it must apply for one. An EIN may be applied for:
extensions, may be penalized 5%of the unpaid tax for
Instructions for Form 1120-H (2024) 5
• Online by visiting/RS.gov/EIN(the EIN is issued exempt function income. Use the association's accounting
immediately once the application information is validated); method to figure the entry for item D.
or Item E. Show any tax-exempt interest received or
• By mailing or faxing Form SS-4,Application for accrued. Include any exempt-interest dividend received as
Employer Identification Number. a shareholder in a mutual fund or other regulated
If the association has not received its EIN by the time investment company(RIC).
the return is due, enter"Applied for"and the date you
applied in the space for the EIN. For more details, see the Line 13. Interest. The business interest expense
Instructions for Form SS-4. deduction may be limited for certain associations. The
Instructions for Form 8990, Limitation on Business Interest
Note. Only associations located in the United States or Expense Under Section 163(j), explain when a business
U.S.territories can use the online process. interest expense deduction is limited,who is required to
file Form 8990, and how certain businesses may elect out
Final return, name change, address change, amen- of the business interest expense limitation. See Form
ded return.• If the association ceases to exist, file Form 1120-H and 8990 and its instructions for details.
check the"Final return"box. Line 16.Total deductions. Expenses, depreciation, and
• If the association changed its name since it last filed a similar items must not only qualify as items of deduction,
return, check the box for"Name change" but must also be directly connected with the production of
• If the association has changed its address since it last gross income(excluding exempt function income)to be
filed a return (including a change to an"in care of" deductible in computing taxable income.
address), check the box for"Address change" Line 20. Multiply the amount on line 19 (taxable income)
• To amend a previously filed Form 1120-H, file a by 30% (0.30) (timeshare associations multiply line 19 by
corrected Form 1120-H and check the`Amended return" 32%(0.32)). If the amount on line 19 is zero or less than
box. zero, enter-0-on line 20.
Note. If a change in address occurs after the return is Line 21.Tax credits. The association may qualify for the
filed, use Form 8822-B, Change of Address or following tax credits.
Responsible Party—Business,to notify the IRS of the new • Foreign tax credit(Form 1118).
address. See the instructions for Form 8822-B for details. • General business credit(Form 3800).
Item A. Type of homeowners association. See Note. Homeowners associations can't claim the
Definitions, earlier. investment credit.
Item B. 60%gross income test. At least 60%of the Enter the total applicable credits on line 21 and attach
association's gross income for the tax year must consist of the appropriate form(s).
exempt function income. See Exempt function income, Line 22.Total tax. If the association must recapture any
earlier. low-income housing credit, qualified electric vehicle credit,
Item C. 90% expenditure test. At least 90%of the new markets credit, or recapture excessive payments from
association's expenditures for the tax year must consist of Form 4255 include the amount of the recapture in the total
expenses to acquire, build, manage, maintain, and care for line 22.To the right of the entry space, enter"LIHTC,"
for association property, and, in the case of a timeshare "QEV,"or"NMTC"; "recapture"; and the amount. For
association,for activities provided to, or on behalf of, details, see Form 4255, Certain Credit Recapture,
members of the timeshare association. Include current Excessive Payments, and Penalties; Form 8611,
and capital expenditures. Use the association's Recapture of Low-Income Housing Credit; Regulations
accounting method to figure the total. section 1.30-1 (regarding the qualified electric vehicle
Include: credit); Form 8874, New Markets Credit; or Form 8874-B,
1. Salary for an association manager or secretary; Notice of Recapture Event for New Markets Credit.
2. Expenses for gardening, paving, street signs, Line 23b. Estimated tax payments. Enter any
security guards, and property taxes assessed on estimated tax payments the association made for the
association property; current tax year.
3. Current operating and capital expenditures for Line 23d. Credit from Form 2439. Enter any credit from
tennis courts, swimming pools, recreation halls, etc.; and Form 2439, Notice to Shareholder of Undistributed
4. Replacement costs for common buildings, heating, Long-Term Capital Gains,for the association's share of
air conditioning, elevators, etc. the tax paid by a RIC or a real estate investment trust
(REIT)on undistributed long-term capital gains included in
Don't include expenditures for property that is not the association's income. Attach Form 2439.
association property.Also, don't include investments or Line 23e. Credit for federal tax on fuels. Enter the total
transfers of funds held to meet future costs.An example income tax credit claimed on Form 4136, Credit for
would be transfers to a sinking fund to replace a roof, even Federal Tax Paid on Fuels. Attach Form 4136.
if the roof is association property.
Item D. Enter the association's total expenditures for the Line 23f. Elective payment election amount from
tax year including those expenditures directly related to Form 3800. Enter on line 23f the total net elective
6 Instructions for Form 1120-H (2024)
payment amount from Form 3800, Part III, line 6, column paperwork Reduction Act Notice. We ask for the
(j). See the Instructions for Form 3800. information on this form to carry out the Internal Revenue
Line 23g. Total payments and credits. Add the laws of the United States.You are required to give us the
amounts on lines 23a through 23f and enter the total on information. We need it to ensure that you are complying
line 23g. with these laws and to allow us to figure and collect the
Backup withholding. If the association had income tax right amount of tax.
withheld from any payments it received because,for You are not required to provide the information
example, it failed to give the payer its correct EIN, include requested on a form that is subject to the Paperwork
the amount withheld in the total for line 23g. This type of Reduction Act unless the form displays a valid OMB
withholding is called backup withholding. Show the control number. Books or records relating to a form or its
amount withheld in the blank space in the right-hand instructions must be retained as long as their contents
column between lines 22 and 23g, and enter"Backup may become material in the administration of any Internal
Withholding" Revenue law. Generally,tax returns and return information
Line 24. Amount owed. If you can't pay the full amount are confidential, as required by section 6103.
of tax you owe,you can apply for an installment The time needed to complete and file this form will vary
agreement online. depending on individual circumstances. The estimated
You can apply for an installment agreement online if: burden for business taxpayers filing this form is approved
• You can't pay the full amount shown on line 24, under OMB control number 1545-0123 and is included in
• The total amount you owe is$25,000 or less, and the estimates shown in the instructions for their business
• You can pay the liability in full in 24 months. income tax return.
To apply using the Online Payment Agreement If you have comments concerning the accuracy of the
Application, go to 1RS.gov/0PA. Under an installment time estimates or suggestions for making this form
agreement, you can pay what you owe in monthly simpler, we would be happy to hear from you. You can
installments.There are certain conditions you must meet send us comments from IRS.gov/FormComments. Or, you
to enter into and maintain an installment agreement, such can write to the Internal Revenue Service,Tax Forms and
as paying the liability within 24 months and making all Publications Division, 1111 Constitution Ave. NW,
required deposits and timely filing tax returns during the IR-6526, Washington, DC 20224. Do not send the tax
length of the agreement. If your installment agreement is form to this office. Instead, see Where To File, earlier.
accepted, you will be charged a fee and you will be
subject to penalties and interest on the amount of tax not
paid by the due date of the return.
Instructions for Form 1120-H (2024) 7