QUESTION:

We live in a townhouse run by a nonprofit association. On the CC&Rs, it states the association is a nonprofit organization. Do we need to file taxes yearly? Our ex-treasurer did not file for the past two years. I think we might be in trouble. Are we?

ANSWER:

If your association is organized as a nonprofit corporation, then you will need to file yearly tax returns. If you are just an association, without a formal structure, then you probably do not have to file.

Either way, do not be overly worried about being in trouble; it will give you bad furrows between the eyes. Simply take steps to get the matter taken care of as soon as possible by talking to an accountant with experience in nonprofit matters.