Condominiums associations are considered corporations in the eyes of the IRS. As such, they are required to file an annual tax return (either an 1120 or 1120-H).

Condo associations showing taxable income on their federal returns are also required to file an IL-1120 with the state of Illinois.

Tax returns must be postmarked by April 15th this year. If your association has not filed a return in the past, now is the year to begin!

Need help compiling your 2023 financials and filing your tax return? Request Accounting services on Condoly to explore your options.

Attorneys have seen an uptick in cases of alleged discrimiation in HOAs and condo associations. Complaints can become costly and stressful for an association.

Here is a summary of how a discrimination complaint is handled:

• Individuals who believe they've faced discrimination by a community association can file a complaint with the Illinois Department of Human Rights (IDHR). This process is free, doesn't require a lawyer, and involves an investigator assigned to the case. The association receives the complaint by mail and, due to its corporate nature, must respond through an attorney.
• The IDHR investigator then gathers information, interviews witnesses, and holds meetings. They then issue a finding stating if substantial evidence supports the discrimination claim. If evidence is lacking, the case is closed. If sufficient evidence exists, the case moves to the Human Rights Commission (HRC). The IDHR investigator doesn't determine guilt, just whether the claim requires further investigation.
• The HRC process resembles a court case, with an assigned judge, discovery phases, and hearings. If no settlement is reached, the judge issues a recommended decision. Appeals are possible, leading to further court proceedings.

You can read examples of recent discrimination cases to better understand what a complaint may look like and its consequences here.

KSN Law, a prominent community association law firm in the Chicagoland area, has launched Brainy Board, an on-demand streaming and educational resource for community association board members.

Learn more and create an account, here. 

The Cook County Treasurer has sent out the 2023 1st installment property tax bills, with payment due by March 1, 2024. These bills represent 55% of last year's total tax. Taxpayers are required to pay their tax bill regardless of any pending tax appeals. Any reductions in assessment resulting from a tax appeal will be reflected in the 2nd installment bill, which will be mailed later in the year. If a taxpayer's 1st installment tax bill is zero, it's likely due to the Assessor assigning a new PIN number, with the entire tax liability to be billed in the 2nd installment. Online payment and viewing options are available.

View and download your tax bill on the Cook County Treasurer's website.

A new federal law may require all condominium and homeowner associations to report information pertaining to the association's board members with the Federal Crimes Enforcement Network (FinCEN). This must be done by January 1, 2025.

Here is what board members need to know now:

• Eligibility and Penalties: Starting January 1, 2024, certain types of corporate entities, including potentially all Illinois condominiums and homeowner associations, must comply with the Corporate Transparency Act (CTA). This law aims to prevent fraud and money laundering by requiring reporting of beneficial ownership information. Failure to comply can result in daily penalties of up to $10,000.
• Reporting Requirements: All reporting companies under the CTA, including eligible associations, must file yearly reports with FinCEN identifying beneficial owners, defined as those with substantial control or owning 25% or more. This likely includes Board officers and directors. Information about the entity itself, the company applicant, and each beneficial owner (including ID documents) must be reported through a secure online system.
• Support and Resources: Associations can designate Board members or their property manager as the company applicant to submit reports. While submitting information may raise privacy concerns, access is restricted to authorized officials and financial institutions with permission. 

We encourage all board members to address this requirement as soon as possible. See more and file online on the FinCEN website.