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Form 1120-H U.S.

Income Tax Return


OMB No. 1545-0127

Department of the Treasury


for Homeowners Associations 2006
Internal Revenue Service
For calendar year 2006 or tax year beginning , 2006, and ending , 20
Name Employer identification number (see page 5)
Use
IRS
label. Number, street, and room or suite no. (If a P.O. box, see page 5.) Date association formed
Other-
wise,
print or City or town, state, and ZIP code
type.

Check if: (1) Final return (2) Name change (3)


Address change (4) Amended return
A Check type of homeowners association: Condominium management association
Residential real estate association Timeshare association
B Total exempt function income. Must meet 60% gross income test (see instructions) B
C Total expenditures made for purposes described in 90% expenditure test (see instructions) C
D Association’s total expenditures for the tax year (see instructions) D
E Tax-exempt interest received or accrued during the tax year E
Gross Income (excluding exempt function income)
1 Dividends 1
2 Taxable interest 2
3 Gross rents 3
4 Gross royalties 4
5 Capital gain net income (attach Schedule D (Form 1120)) 5
6 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6
7 Other income (excluding exempt function income) (attach schedule) 7
8 Gross income (excluding exempt function income). Add lines 1 through 7 8
Deductions (directly connected to the production of gross income, excluding exempt function income)
9 Salaries and wages 9
10 Repairs and maintenance 10
11 Rents 11
12 Taxes and licenses 12
13 Interest 13
14 Depreciation (attach Form 4562) 14
15 Other deductions (attach schedule) 15
16 Total deductions. Add lines 9 through 15 16
17 Taxable income before specific deduction of $100. Subtract line 16 from line 8 17
18 Specific deduction of $100 18 $100 00
Tax and Payments
19 Taxable income. Subtract line 18 from line 17 19
20 Enter 30% of line 19. (Timeshare associations, enter 32% of line 19.) 20
21 Tax credits (see instructions) 21
22 Total tax. Subtract line 21 from line 20. See instructions for recapture of certain credits 22
23 Payments: a 2005 overpayment
credited to 2006 23a
b 2006 estimated tax payments 23b c Total © 23c
d Tax deposited with Form 7004 23d
e Credit for tax paid on undistributed capital gains (attach Form 2439) 23e
f Credit for federal tax on fuels (attach Form 4136) 23f
g Credit for federal telephone excise tax paid (attach Form 8913) 23g
h Add lines 23c through 23g 23h
24 Amount owed. Subtract line 23h from line 22. See instructions for depository method of tax payment 24
25 Overpayment. Subtract line 22 from line 23h 25
26 Enter amount of line 25 you want: Credited to 2007 estimated tax © Refunded © 26
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign May the IRS discuss this return
Here
© ©
with the preparer shown below
(see instructions)? Yes No
Signature of officer Date Title

©
Date Preparer’s SSN or PTIN
Paid Preparer’s Check if
signature self-employed
Preparer’s
©
Firm’s name (or EIN
Use Only yours if self-employed),
Phone no. ( )
address, and ZIP code
For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 11477H Form 1120-H (2006)
Form 1120-H (2006) Page 2

What’s New get most forms and publications at Tax rate. The taxable income of a
your local IRS office. homeowners association that files its
● Homeowners associations can
tax return on Form 1120-H is taxed at
request a credit for the federal General Instructions a flat rate of 30% for condominium
telephone excise tax paid for
Section references are to the Internal management associations and
nontaxable telephone service on
Revenue Code unless otherwise noted. residential real estate associations.
line 23g.
The tax rate for timeshare associations
● Homeowners associations whose Purpose of Form is 32%. These rates apply to both
principal business, office, or agency A homeowners association files Form ordinary income and capital gains.
are located in a foreign country or 1120-H as its income tax return to If the association is tax exempt
U.S. possession must now file Form take advantage of certain tax benefits. under section 501(a), do not file Form
1120-H at the Internal Revenue These benefits, in effect, allow the 1120-H. See section 6033 and related
Service Center, P.O. Box 409101, association to exclude exempt regulations. If the association loses its
Ogden, UT 84409. function income (defined later) from its exempt status, see Regulations
How To Get Forms gross income. section 1.528-8(e).
and Publications Electing To File Form Definitions
Internet. You can access the IRS 1120-H Homeowners association. There are
website 24 hours a day, 7 days a three types of homeowners
A homeowners association elects to
week, at www.irs.gov to: associations.
take advantage of the tax benefits
● Download forms, instructions, and provided by section 528 by filing a 1. A condominium management
publications; properly completed Form 1120-H. The association organized and operated to
● Order IRS products online; election is made separately for each acquire, build, manage, maintain, and
● Research your tax questions online; tax year and generally must be made care for the property in a
● Search publications online by topic by the due date, including extensions, condominium project substantially all
or keyword; and of the income tax return. of whose units are homes for
This extension does not extend the individuals.
● Sign up to receive local and national
tax news by email. time to pay the tax. 2. A residential real estate
IRS Tax Products CD. You can order Once Form 1120-H is filed, the management association organized
Pub. 1796, IRS Tax Products CD, and association cannot revoke its election and operated to acquire, build,
obtain: for that year unless the IRS consents. manage, maintain, and care for a
The association may request IRS subdivision, development, or similar
● Current year forms, instructions, and area substantially all of whose lots or
consent by filing a ruling request. A
publications; buildings are homes for individuals.
user fee must be paid with all ruling
● Prior-year forms, instructions, and requests. For more information on 3. A timeshare association (other
publications; ruling requests, see Rev. Proc. than a condominium management
● Tax Map: An electronic research 2006-1. You can find this revenue association) organized and operated
tool and finding aid; procedure on page 1 of Internal to acquire, build, manage, maintain,
● Tax law frequently asked questions Revenue Bulletin 2006-1 at and care for the property that has
(FAQs); www.irs.gov/pub/irs-irbs/irb06-01.pdf. members who hold a timeshare right
● Tax topics from the IRS telephone If the association does not elect to to use, or a timeshare ownership
response system; use Form 1120-H, it must file the interest in, real property of the
applicable income tax return (Form timeshare association. A timeshare
● Fill-in, print, and save features for
1120, etc.). association cannot be a condominium
most tax forms;
Automatic 12-month extension to management association.
● The Internal Revenue Bulletins; and
make election. If the homeowners To qualify as a homeowners
● Toll-free and email technical association fails to make the association, the following must apply.
support. regulatory election to be treated as a See Regulations section 1.528-4
The CD is released twice during the homeowners association, it can get an for information regarding the
year. automatic 12-month extension to “substantially all” test for
● The first release will ship the make the section 528 election, condominium management
beginning of January 2007. provided corrective action is taken associations and residential real
● The final release will ship the within 12 months of the due date estate management associations.
beginning of March 2007. (including extension) of the return. See
Regulations section 301.9100-2 for ● At least 60% of the association’s
Purchase the CD from National gross income for the tax year must
more information.
Technical Information Service at consist of exempt function income
www.irs.gov/cdorders for $25 (no A homeowners association should
(defined later).
handling fee) or call 1-877-CDFORMS compare its total tax computed on
Form 1120-H with its total tax ● At least 90% of the association’s
(1-877-233-6767) toll free to buy the
computed on either Form 1120, U.S. expenses for the tax year must
CD for $25 (plus a $5 handling fee).
Corporation Income Tax Return, or consist of expenses to acquire,
Price is subject to change.
Form 1120-A, U.S. Corporation build, manage, maintain, or care for
By phone and in person. You can its property, and, in the case of a
Short-Form Income Tax Return. The
order forms and publications by timeshare association, for activities
association may file the form that
calling 1-800-TAX-FORM
results in the lowest tax.
(1-800-829-3676). You can also
Form 1120-H (2006) Page 3

provided to, or on behalf of, members a residential real estate management and Other Returns, to request a
of the timeshare association. association, or (c) owners of timeshare 6-month extension of time to file.
● No private shareholder or individual rights to use, or timeshare ownership
can profit from the association’s net interests in, real property in the case Who Must Sign
earnings except by acquiring, building, of a timeshare association. This The return must be signed and dated
managing, or caring for association income must come from the members by the president, vice-president,
property or by a rebate of excess as owners, not as customers, of the treasurer, assistant treasurer, chief
membership dues, fees, or association’s services. accounting officer, or any other
assessments. Assessments or fees for a common association officer (such as tax officer)
● The association must file Form activity qualify but charges for authorized to sign.
1120-H to elect under section 528 to providing services do not qualify. If a return is filed on behalf of an
be treated as a homeowners Examples. In general, exempt function association by a receiver, trustee, or
association. income includes assessments made assignee, the fiduciary must sign the
to: return, instead of the association
Association property. Association
1. Pay principal, interest, and real officer. Returns and forms signed by a
property includes real and personal
estate taxes on association property. receiver or trustee in bankruptcy on
property that:
behalf of an association must be
1. The association holds, 2. Maintain association property. accompanied by a copy of the order
2. The association’s members hold 3. Clear snow from public areas and or instructions of the court authorizing
in common, remove trash. signing of the return or form.
3. The association’s members hold Income that is not exempt function If an association officer completes
privately within the association, and income includes: Form 1120-H, the paid preparer’s
4. Is owned by a governmental unit 1. Amounts that are not includible in space should remain blank. Anyone
and is used to benefit the unit’s the organization’s gross income other who prepares Form 1120-H but does
residents. than under section 528 (for example, not charge the association should not
tax-exempt interest). complete that section. Generally,
Timeshare association property anyone who is paid to prepare the
includes property related to the 2. Payments from nonmembers.
return must sign it and fill in the “Paid
timeshare project that the association 3. Payments from members for Preparer’s Use Only” area.
or its members have rights to use. special use of the organization’s The paid preparer must complete
These rights must arise out of facilities, apart from the use generally the required preparer information and:
recorded easements, covenants, or available to all members.
other recorded instruments. ● Sign the return in the space
4. Interest on amounts in a sinking provided for the preparer’s signature.
For more information, see fund.
Regulations section 1.528-3. ● Give a copy of the return to the
5. Payments for work done on taxpayer.
Taxable income. Taxable income is nonassociation property.
the excess, if any, of: Note. A paid preparer may sign
6. Members’ payments for original or amended returns by rubber
1. Gross income for the tax year, transportation. stamp, mechanical device, or
excluding exempt function income, For more information, see computer software program.
over Regulations section 1.528-9.
2. Allowed deductions directly Where To File
connected with producing any gross When To File File the association’s return at the
income except exempt function Generally, an association must file applicable IRS address listed below.
income. Allowed deductions include a Form 1120-H by the 15th day of the
specific $100 deduction. The following 3rd month after the end of its tax year. If the association’s Use the following
are not allowed: If the due date falls on a Saturday,
principal business, Internal Revenue
office, or agency is Service Center
● Net operating loss deduction Sunday, or legal holiday, the located in: address:
(section 172). association may file on the next
Connecticut,
● Deductions under part VIII of business day. Delaware, District of
subchapter B (special deductions for Private delivery services. You can Columbia, Illinois,
corporations). use certain private delivery services Indiana, Kentucky,
designated by the IRS to meet the Maine, Maryland,
If facilities are used (or personnel Massachusetts,
are employed) for both exempt and “timely mailing as timely filing/paying” Michigan, New
nonexempt purposes, see Regulations rule for tax returns and payments. See Hampshire, Cincinnati, OH
section 1.528-10. the instructions for Form 1120 for New Jersey, New 45999-0012
details. York, North Carolina,
Exempt function income. Exempt Ohio, Pennsylvania,
function income consists of Extension. File Form 7004, Rhode Island,
membership dues, fees, or Application for Automatic 6-Month South Carolina,
assessments from (a) owners of Extension of Time To File Certain Vermont, Virginia,
Business Income Tax, Information, West Virginia,
condominium housing units, (b) Wisconsin
owners of real property in the case of
Form 1120-H (2006) Page 4

Alabama, Alaska,
Other Forms and Statements Rounding Off to Whole
Arizona, Arkansas, That May Be Required Dollars
California, Colorado,
Florida, Georgia,
See the Instructions for Forms 1120 The association can round off cents to
Hawaii, Idaho, Iowa, and 1120-A and Pub. 542, whole dollars on its return and
Kansas, Louisiana, Corporations, for a list of other forms schedules. If the association does
Minnesota, and statements the association may round to whole dollars, it must round
Mississippi, Missouri, Ogden, UT be required to file. all amounts. To round, drop amounts
Montana, Nebraska, 84201-0012 under 50 cents and increase amounts
Nevada, New Mexico, Assembling the Return from 50 to 99 cents to the next dollar
North Dakota,
Oklahoma, Oregon, Attach Form 4136, Credit for Federal (for example, $1.39 becomes $1 and
South Dakota, Tax Paid on Fuels, to Form 1120-H. $2.50 becomes $3).
Tennessee, Texas, Attach schedules in alphabetical order If two or more amounts must be
Utah, Washington, and additional forms in numerical added to figure the amount to enter
Wyoming order after Form 4136. on a line, include cents when adding
A foreign country or P.O. Box 409101 Complete every applicable entry the amounts and round off only the
U.S. possession Ogden, UT 84409 space on Form 1120-H. Do not write total.
“See Attached” instead of completing
the entry spaces. If more space is Depository Methods of Tax
Paid Preparer Authorization needed on the forms or schedules, Payment
If the association wants to allow the attach separate sheets using the same The association must pay any tax due
IRS to discuss its 2006 tax return with size and format as the printed forms. in full no later than the 15th day of the
the paid preparer who signed it, check If there are supporting statements and 3rd month after the end of the tax
the “Yes” box in the signature area of attachments, arrange them in the year. The two methods of depositing
the return. This authorization applies same order as the schedules or forms taxes are discussed below.
only to the individual whose signature they support and attach them last.
Show the totals on the printed forms. Electronic deposit requirement. The
appears in the “Paid Preparer’s Use association must make electronic
Only” section of the return. It does not Enter the association’s name and EIN
on each supporting statement or deposits of all depository taxes (such
apply to the firm, if any, shown in that as employment tax, excise tax, and
section. attachment.
corporate income tax) using the
If the “Yes” box is checked, the Accounting Methods Electronic Federal Tax Payment
association is authorizing the IRS to System (EFTPS) in 2007 if:
call the paid preparer to answer any Figure taxable income using the
method of accounting regularly used ● The total deposits of such taxes in
questions that may arise during the 2005 were more than $200,000 or
processing of its return. The in keeping the association’s books
association is also authorizing the paid and records. In all cases, the method ● The association was required to use
preparer to: used must clearly show taxable EFTPS in 2006.
income. Permissible methods include If the association is required to use
● Give the IRS any information that is cash, accrual, or any other method
missing from the return, EFTPS and fails to do so, it may be
authorized by the Internal Revenue subject to a 10% penalty. If the
● Call the IRS for information about Code. association is not required to use
the processing of the return or the Change in accounting method. To EFTPS, it may participate voluntarily.
status of any related refund or change its method of accounting used To enroll in or get more information
payment(s), and to report taxable income (for income about EFTPS, call 1-800-555-4477. To
● Respond to certain IRS notices as a whole or for any material item) enroll online, visit the EFTPS website
about math errors, offsets, and return the association must file Form 3115, at www.eftps.gov.
preparation. Application for Change in Accounting Depositing on time. For EFTPS
The association is not authorizing Method. For more information, see deposits to be made timely, the
the paid preparer to receive any Form 3115 and Pub. 538, Accounting association must initiate the
refund check, bind the association to Periods and Methods. transaction at least 1 business day
anything (including any additional tax before the date the deposit is due.
liability), or otherwise represent the Change of Tax Year
Deposits with Form 8109. If the
association before the IRS. Generally, an association must get the
association does not use EFTPS,
The authorization will automatically consent of the IRS before changing its
deposit tax payments (and estimated
end no later than the due date tax year by filing Form 1128,
tax payments) with Form 8109,
(excluding extension) for filing the Application To Adopt, Change, or
Federal Tax Deposit Coupon. If you do
association’s 2007 tax return. If the Retain a Tax Year. However, under
not have a preprinted Form 8109, use
association wants to expand the paid certain conditions, an association can
Form 8109-B to make deposits. You
preparer’s authorization, see Pub. 947, change its tax year without getting the
can get this form by calling
Practice Before the IRS and Power of consent.
1-800-829-4933 or visiting an IRS
Attorney. For more information on change of taxpayer assistance center. Have your
tax year, see Form 1128, Regulations EIN ready when you call or visit.
section 1.442-1, and Pub. 538.
Form 1120-H (2006) Page 5

Do not send deposits directly to an failure to file, negligence, fraud, creating it), address, and EIN on the
IRS office; otherwise, the association substantial valuation misstatements, appropriate lines. Include the suite,
may have to pay a penalty. Mail or substantial understatements of tax, room, or other unit number after the
deliver the completed Form 8109 with and reportable transaction street address. If a preaddressed label
the payment to an authorized understatements from the due date is used, include this information on the
depositary (a commercial bank or (including extensions) to the date of label. If the Post Office does not
other financial institution authorized to payment. The interest charge is deliver mail to the street address and
accept federal tax deposits). Make figured at a rate determined under the association has a P.O. box, show
checks or money orders payable to section 6621. the box number instead.
the depositary. If the association receives its mail in
Late filing of return. In addition to
If you prefer, you may mail the losing the right to elect to file Form care of a third party (such as an
coupon and payment to: Financial 1120-H, a homeowners association accountant or an attorney), enter on
Agent, Federal Tax Deposit that does not file its tax return by the the street address line “C/O” followed
Processing, P.O. Box 970030, St. due date, including extensions, may by the third party’s name and street
Louis, MO 63197. Make the check or be penalized 5% of the unpaid tax for address or P.O. box.
money order payable to “Financial each month or part of a month the Employer identification number
Agent.” return is late, up to a maximum of (EIN). Enter the association’s EIN. If
To help ensure proper crediting, 25% of the unpaid tax. The minimum the association does not have an EIN,
enter the association’s EIN, the tax penalty for a return that is over 60 it must apply for one. An EIN may be
period to which the deposit applies, days late is the smaller of the tax due applied for:
and “Form 1120-H” on the check or or $100. The penalty will not be
● Online—Click on the EIN link at
money order. Darken the “1120” box imposed if the association can show
www.irs.gov/businesses/small. The EIN
under “Type of Tax” and the that the failure to file on time was due
is issued immediately once the
appropriate “Quarter” box under “Tax to reasonable cause. Associations that
application information is validated.
Period” on the coupon. Records of file late should attach a statement
these deposits will be sent to the IRS. explaining the reasonable cause. ● By telephone at 1-800-829-4933
For more information, see “Marking from 7:00 a.m. to 10:00 p.m. in the
Late payment of tax. An association
the Proper Tax Period” in the association’s local time zone.
that does not pay the tax when due
instructions for Form 8109. generally may be penalized 1⁄ 2 of 1% ● By mailing or faxing Form SS-4,
For more information on deposits, of the unpaid tax for each month or Application for Employer Identification
see the instructions in the coupon part of a month the tax is not paid, up Number.
booklet (Form 8109) and Pub. 583, to a maximum of 25% of the unpaid If the association has not received
Starting a Business and Keeping tax. The penalty will not be imposed if its EIN by the time the return is due,
Records. the association can show that the write “Applied for” in the space for the
Caution: If the association owes tax failure to pay on time was due to EIN. For more details, see Pub. 583.
when it files Form 1120-H, do not reasonable cause. Note. The online application process
include the payment with the tax Other penalties. Other penalties can is not yet available for associations
return. Instead, mail or deliver the be imposed for negligence, substantial with addresses in foreign countries or
payment with Form 8109 to an understatement of tax, reportable Puerto Rico.
authorized depositary, or use EFTPS, if transaction understatements, and Final return, name change, address
applicable. fraud. See sections 6662, 6662A, and change, or amended return.
6663.
Estimated Tax, Alternative ● If the association ceases to exist,
Specific Instructions file Form 1120-H and check the “Final
Minimum Tax, and Certain return” box.
Tax Credits Period covered. File the 2006 return
● If the association changed its name
These items do not apply to for calendar year 2006, and fiscal
years that begin in 2006 and end in since it last filed a return, check the
homeowners associations electing to box for “Name change”.
file Form 1120-H. See the instructions 2007. For a fiscal year return, fill in the
tax year space at the top of the form. ● If the association has changed its
for line 21, later, for a list of the tax
address since it last filed a return
credits that do not apply. However, a The 2006 Form 1120-H can also be (including a change to an “in care of”
homeowners association that does used if (a) the association has a tax address), check the box for “Address
not elect to file Form 1120-H may be year of less than 12 months that change”.
required to make payments of begins and ends in 2007 and (b) the
estimated tax. Because the election is 2007 Form 1120-H is not available at ● To amend a previously filed Form
not made until the return is filed, Form the time the association is required to 1120-H, file a corrected Form 1120-H
1120-H provides lines for estimated file its return. and check the “Amended return” box.
tax payments and the crediting of Note. If a change in address occurs
overpayments against estimated tax if The association must show its 2007 after the return is filed, use Form
payments or overpayments apply. tax year on the 2006 Form 1120-H 8822, Change of Address, to notify the
and take into account any tax law IRS of the new address.
Interest and Penalties changes that are effective for tax
years beginning after 2006. Item A. Type of homeowners
Interest. Interest is charged on taxes association. See Definitions on
paid late even if an extension of time Name and address. Print or type the page 2.
to file is granted. Interest is also association’s true name (as set forth in
charged on penalties imposed for the charter or other legal document
Form 1120-H (2006) Page 6

Item B. 60% gross income test. At Line 21. Tax credits. The association Backup withholding. If the
least 60% of the association’s gross may qualify for the following tax association had income tax withheld
income for the tax year must consist credits: from any payments it received
of exempt function income (see ● Foreign tax credit (Form 1118). because, for example, it failed to give
Definitions on page 2). the payer its correct EIN, include the
● Qualified electric vehicle credit
Item C. 90% expenditure test. At amount withheld in the total for line
(Form 8834).
least 90% of the association’s 23h. This type of withholding is called
● General business credit (Form backup withholding. Show the amount
expenditures for the tax year must 3800). However, it does not include
consist of expenses to acquire, build, withheld in the blank space in the
the investment credit. right-hand column between lines 22
manage, maintain, and care for
Enter the total amount of credits on and 23h, and write “Backup
property, and in the case of a
line 21 and attach the appropriate Withholding”.
timeshare association, for activities
form(s).
provided to, or on behalf of, members
of the timeshare association. Include Line 22. If the association must Privacy Act and Paperwork
current and capital expenditures. Use recapture any of the low-income Reduction Act Notice. We ask for the
the association’s accounting method housing credit (or the qualified electric information on this form to carry out
to figure the total. vehicle or new markets credit), include the Internal Revenue laws of the
the amount of the recapture in the United States. You are required to
Include: give us the information. We need it to
total for line 22. To the right of the
1. Salary for an association manager ensure that you are complying with
entry space, write “LIH”, “QEV”, or
or secretary. these laws and to allow us to figure
“NMC”, “recapture”, and the amount.
2. Expenses for gardening, paving, For details, see Form 8611, Recapture and collect the right amount of tax.
street signs, security guards, and of Low-Income Housing Credit; Section 6109 requires return preparers
property taxes assessed on Regulations section 1.30-1 (regarding to provide their identifying numbers on
association property. the qualified electric vehicle credit); or the return.
3. Current operating and capital Form 8874, New Markets Credit. You are not required to provide the
expenditures for tennis courts, information requested on a form that
Line 23g. Credit for federal
swimming pools, recreation halls, etc. is subject to the Paperwork Reduction
telephone excise tax paid. If the
Act unless the form displays a valid
4. Replacement costs for common association was billed after February
OMB control number. Books or
buildings, heating, air conditioning, 28, 2003, and before August 1, 2006,
records relating to a form or its
elevators, etc. for the federal telephone excise tax on
instructions must be retained as long
Do not include expenditures for long distance or bundled service, the
as their contents may become material
property that is not association association may be able to request a
in the administration of any Internal
property. Also, do not include credit for the tax paid. The association
Revenue law. Generally, tax returns
investments or transfers of funds held had bundled service if its local and
and return information are confidential,
to meet future costs. An example long distance service was provided
as required by section 6103.
would be transfers to a sinking fund to under a plan that does not separately
state the charge for local service. The The time needed to complete and
replace a roof, even if the roof is
association cannot request the credit if file this form will vary depending on
association property.
it has already received a credit or individual circumstances. The
Item D. Enter the association’s total refund from its service provider. If the estimated average time is:
expenditures for the tax year including association requests the credit, it Recordkeeping 11 hr., 57 min.
those expenditures directly related to cannot ask its service provider for a
exempt function income. Use the Learning about the
credit or refund and must withdraw law or the form 5 hr., 19 min.
association’s accounting method to any request previously submitted to its
figure the entry for item D. provider. Preparing the form 13 hr., 12 min.
Item E. Show any tax-exempt interest The association can request the Copying, assembling,
received or accrued. Include any credit by attaching Form 8913, Credit and sending the form
exempt-interest dividend received as a for Federal Telephone Excise Tax to the IRS 2 hr., 9 min.
shareholder in a mutual fund or other Paid, showing the actual amount the If you have comments concerning
regulated investment company. association paid. The association also the accuracy of these time estimates
Line 15. Other deductions. Expenses, may be able to request the credit or suggestions for making this form
depreciation, and similar items must based on an estimate of the amount simpler, we would be happy to hear
not only qualify as items of deduction, paid. See Form 8913 for details. In from you. You can write to the Internal
but must also be directly connected either case, the association must keep Revenue Service, Tax Products
with the production of gross income to records to substantiate the amount of Coordinating Committee,
be deductible in computing the the credit requested. SE:W:CAR:MP:T:T:SP, 1111
unrelated taxable income. Constitution Ave. NW, IR-6406,
Washington, DC 20224. Do not send
the tax form to this office. Instead, see
Where To File on page 3.