1120-H Instructions for Form 1120-H

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2018

Department of the Treasury
Internal Revenue Service

Instructions for
Form 1120-H

DRAFT AS OF
September 11, 2018
U.S. Income Tax Return for Homeowners Associations
Section references are to the Internal
Revenue Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Form
1120-H and its separate instructions,
such as legislation enacted after they
were published, go to IRS.gov/
Form1120H.

What’s New
Address change for filing returns.
The filing address for associations
located in certain areas will change for
returns filed after June 17, 2019. See
Where To File, later.
Business interest expense limitation. Public Law 115-97 amended
section 163(j) to reflect a limit on
business interest expense. For tax
years beginning in 2018, a business
interest expense deduction may be
limited for certain taxpayers. The
Instructions for Form 8990, Limitation
on Business Interest Expense Under
Section 163(j), explain when a
business interest expense deduction
is limited, who is required to file Form
8990, and how certain businesses
may elect out of the business interest
expense limitation.

Photographs of
Missing Children

The IRS is a proud partner with the
National Center for Missing &
Exploited Children® (NCMEC).
Photographs of missing children
selected by the Center may appear in
instructions on pages that would
otherwise be blank. You can help
bring these children home by looking
at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if
you recognize a child.

The Taxpayer Advocate
Service
The Taxpayer Advocate Service
(TAS) is an independent

Aug 27, 2018

organization within the IRS that helps
taxpayers and protects taxpayer
rights. TAS’s job is to ensure that
every taxpayer is treated fairly and
knows and understands their rights
under the Taxpayer Bill of Rights.

As a taxpayer, the association has
rights that the IRS must abide by in its
dealings with the association. TAS
can help the association if:
A problem is causing financial
difficulty for the business;
The association is facing immediate
threat of adverse action; or
The association has tried
repeatedly to contact the IRS but no
one has responded, or the IRS hasn’t
responded by the date promised.
The TAS tax toolkit at IRS.gov/
Advocate can help the corporation
understand these rights.
TAS has offices in every state, the
District of Columbia, and Puerto Rico.
Local advocates’ numbers are in their
local directories and at IRS.gov/
Advocate. The corporation can also
call TAS at 1-877-777-4778.
TAS also works to resolve
large-scale or systemic problems that
affect many taxpayers. If the
association knows of one of these
broad issues, please report it to TAS
through the Systemic Advocacy
Management System at IRS.gov/
SAMS.
For more information, go to
IRS.gov/Advocate.

How To Get Forms
and Publications
Internet. You can access the IRS
website 24 hours a day, 7 days a
week, at IRS.gov to:
Download forms, instructions, and
publications;
Order IRS products online;
Research your tax questions online;
Search publications online by topic
or keyword; and
Cat. No. 24935G

Sign up to receive local and
national tax news by email.

Tax forms and publications. The
association can download or print all
of the forms and publications it may
need on IRS.gov/FormsPubs.
Otherwise, the association can go
to IRS.gov/OrderForms to place an
order and have forms mailed to it. The
association should receive its order
within 10 business days.

General Instructions
Purpose of Form

A homeowners association files Form
1120-H as its income tax return to
take advantage of certain tax benefits.
These benefits, in effect, allow the
association to exclude exempt
function income (defined later) from
its gross income.

Electing To File Form
1120-H

A homeowners association elects to
take advantage of the tax benefits
provided by section 528 by filing a
properly completed Form 1120-H.
The election is made separately for
each tax year and generally must be
made by the due date, including
extensions, of the income tax return.
This extension does not extend the
time to pay the tax.
Once Form 1120-H is filed, the
association cannot revoke its election
for that year unless the IRS consents.
The association may request IRS
consent by filing a ruling request. A
user fee must be paid with all ruling
requests. For more information on
ruling requests, see Rev. Proc.
2018-1, 2018-1 I.R.B. 1 (or any
successor), available at IRS.gov/irb/
2018-01_IRB#RP-2018-01.
If the association does not elect to
use Form 1120-H, it must file the
applicable income tax return, for
example, Form 1120, U.S.
Corporation Income Tax Return.

A homeowners association should
compare its total tax figured on Form
1120-H with its total tax figured on
Form 1120. The association may file
the form that results in the lowest tax.
Automatic 12-month extension to
make election. If the homeowners
association fails to make the
regulatory election to be treated as a
homeowners association, it can get
an automatic 12-month extension to
make the section 528 election,
provided corrective action is taken
within 12 months of the due date
(including extension) of the return.
See Regulations section 301.9100-2
for more information.

association cannot be a condominium
management association.
See Regulations section 1.528-4
for information regarding the
“substantially all” test for
condominium management
associations and residential real
estate management associations.
To qualify as a homeowners
association, the following must apply.
At least 60% of the association's
gross income for the tax year must
consist of exempt function income
(defined later).
At least 90% of the association's
expenses for the tax year must
consist of expenses to acquire, build,
manage, maintain, or care for its
property, and, in the case of a
timeshare association, for activities
provided to, or on behalf of, members
of the timeshare association.
No private shareholder or individual
can profit from the association's net
earnings except by acquiring,
building, managing, or caring for
association property or by a rebate of
excess membership dues, fees, or
assessments.
The association must file Form
1120-H to elect under section 528 to
be treated as a homeowners
association.

2. Allowed deductions directly
connected with producing any gross
income except exempt function
income. Allowed deductions include a
specific $100 deduction. The
following are not allowed.
Net operating loss deduction
(section 172).
Deductions under Part VIII of
subchapter B (special deductions for
corporations).

DRAFT AS OF
September 11, 2018
Tax rate. The taxable income of a
homeowners association that files its
tax return on Form 1120-H is taxed at
a flat rate of 30% for condominium
management associations and
residential real estate associations.
The tax rate for timeshare
associations is 32%. These rates
apply to both ordinary income and
capital gains.
If the association is tax exempt
under section 501(a), do not file Form
1120-H. See section 6033 and related
regulations. If the association loses its
exempt status, see Regulations
section 1.528-8(e).

Definitions
Homeowners association. There
are three types of homeowners
associations.
1. A condominium management
association organized and operated
to acquire, build, manage, maintain,
and care for the property in a
condominium project substantially all
of whose units are homes for
individuals.
2. A residential real estate
management association organized
and operated to acquire, build,
manage, maintain, and care for a
subdivision, development, or similar
area substantially all of whose lots or
buildings are homes for individuals.
3. A timeshare association (other
than a condominium management
association) organized and operated
to acquire, build, manage, maintain,
and care for the property that has
members who hold a timeshare right
to use, or a timeshare ownership
interest in, real property of the
timeshare association. A timeshare

Association property. Association
property includes real and personal
property that:
1. The association holds,
2. The association's members
hold in common,
3. The association's members
hold privately within the association,
and
4. Is owned by a governmental
unit and is used to benefit the unit's
residents.
Timeshare association property
includes property related to the
timeshare project that the association
or its members have rights to use.
These rights must arise out of
recorded easements, covenants, or
other recorded instruments.
For more information, see
Regulations section 1.528-3.
Taxable income. Taxable income is
the excess, if any, of:
1. Gross income for the tax year,
excluding exempt function income,
over
-2-

If facilities are used (or personnel
are employed) for both exempt and
nonexempt purposes, see
Regulations section 1.528-10.

Exempt function income. Exempt
function income consists of
membership dues, fees, or
assessments from
(a) owners of condominium housing
units, (b) owners of real property in
the case of a residential real estate
management association, or (c)
owners of timeshare rights to use, or
timeshare ownership interests in, real
property in the case of a timeshare
association. This income must come
from the members as owners, not as
customers, of the association's
services.
Assessments or fees for a common
activity qualify but charges for
providing services don’t qualify.
Examples. In general, exempt
function income includes
assessments made to the following.
1. Pay principal, interest, and real
estate taxes on association property.
2. Maintain association property.
3. Clear snow from public areas
and remove trash.
Income that is not exempt function
income includes the following.
1. Amounts that are not includible
in the organization's gross income
other than under section 528 (for
example, tax-exempt interest).
2. Payments from nonmembers.
3. Payments from members for
special use of the organization's
facilities, apart from the use generally
available to all members.
4. Interest on amounts in a sinking
fund.
5. Payments for work done on
nonassociation property.
6. Members' payments for
transportation.

Instructions for Form 1120-H

For more information, see
Regulations section 1.528-9.

When To File

Generally, an association must file
Form 1120-H by the 15th day of the
4th month after the end of its tax year.

receiver or trustee in bankruptcy on
behalf of an association must be
accompanied by a copy of the order
or instructions of the court authorizing
signing of the return or form.
If an association officer completes
Form 1120-H, the paid preparer
space should remain blank. Anyone
who prepares Form 1120-H but
doesn’t charge the association should
not complete that section. Generally,
anyone who is paid to prepare the

return must sign it and fill in the “Paid
Preparer Use Only” area.
The paid preparer must complete
the required preparer information and
do the following.
Sign the return in the space
provided for the preparer's signature.
Give a copy of the return to the
taxpayer.

DRAFT AS OF
September 11, 2018
However, an association with a
fiscal year ending June 30 must file by
the 15th day of the 3rd month after the
end of its tax year. An association with
a short tax year ending anytime in
June will be treated as if the short year
ended on June 30, and must file by
the 15th day of the 3rd month after the
end of its tax year.
If the due date falls on a Saturday,
Sunday, or legal holiday, the
association may file on the next
business day.

Private delivery services.
Associations can use certain private
delivery services (PDS) designated by
the IRS to meet the “timely mailing as
timely filing/paying” rule for tax
returns. Go to IRS.gov/PDS for the
current list of designated services.
The PDS can tell you how to get
written proof of the mailing date.
For the IRS mailing address to use
if you are using PDS, go to IRS.gov/
PDSStreetAddresses.
PDS can't deliver items to
P.O. boxes. You must use the
CAUTION U.S. Postal Service to mail
any item to an IRS P.O. box address.

!

Extension. File Form 7004,
Application for Automatic Extension of
Time To File Certain Business Income
Tax, Information, and Other Returns,
to request an extension of time to file.
If the association elects to file
Form 1120-H, it should file for
CAUTION extension on Form 7004 using
the original form type assigned to the
entity.

!

Who Must Sign

The return must be signed and dated
by the president, vice-president,
treasurer, assistant treasurer, chief
accounting officer, or any other
association officer (such as tax
officer) authorized to sign.
If a return is filed on behalf of an
association by a receiver, trustee, or
assignee, the fiduciary must sign the
return, instead of the association
officer. Returns and forms signed by a

Instructions for Form 1120-H

Note. A paid preparer may sign the
original or amended returns by rubber

Where To File

File the association's return at the address listed below.
If the association's principal business,
office, or agency is located in:

Use the following address:

For Returns Filed 1/1/19 Through 6/17/19
Connecticut, Delaware, District of Columbia,
Florida, Indiana, Maine, Maryland,
Department of the Treasury
Massachusetts, New Hampshire, New Jersey,
Internal Revenue Service Center
New York, North Carolina, Ohio, Pennsylvania,
Cincinnati, OH 45999-0012
Rhode Island, South Carolina, Vermont,
Virginia, West Virginia
Alabama, Alaska, Arizona, Arkansas,
California, Colorado, Hawaii, Idaho, Iowa,
Kansas, Louisiana, Minnesota, Mississippi,
Missouri, Montana, Nebraska, Nevada, New
Mexico, North Dakota, Oklahoma, Oregon,
South Dakota, Texas, Utah, Washington,
Wyoming

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0012

Georgia, Illinois, Kentucky, Michigan,
Tennessee, Wisconsin

Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999-0012

A foreign country or U.S. possession

Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

For Returns Filed After 6/17/19
Connecticut, Delaware, District of Columbia,
Georgia, Illinois, Indiana, Kentucky, Maine,
Maryland, Massachusetts, Michigan, New
Hampshire, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, Rhode Island,
South Carolina, Tennessee, Vermont, Virginia,
West Virginia, Wisconsin

Department of the Treasury
Internal Revenue Service Center
Kansas CIty, MO
64999-0012

Alabama, Alaska, Arizona, Arkansas,
California, Colorado, Florida, Hawaii, Idaho,
Iowa, Kansas, Louisiana, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Mexico, North Dakota,
Oklahoma, Oregon, South Dakota, Texas,
Utah, Washington, Wyoming

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0012

A foreign country or U.S. possession

-3-

Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

stamp, mechanical device, or
computer software program.

Paid Preparer
Authorization

If the association wants to allow the
IRS to discuss its 2018 tax return with
the paid preparer who signed it, check
the “Yes” box in the signature area of
the return. This authorization applies
only to the individual whose signature
appears in the “Paid Preparer Use
Only” section of the return. It doesn’t
apply to the firm, if any, shown in that
section.

Complete every applicable entry
space on Form 1120-H. Do not write
“See Attached” instead of completing
the entry spaces. If more space is
needed on the forms or schedules,
attach separate sheets using the
same size and format as the printed
forms. If there are supporting
statements and attachments, arrange
them in the same order as the
schedules or forms they support and
attach them last. Show the totals on
the printed forms. Enter the
association's name and EIN on each
supporting statement or attachment.

from 50 to 99 cents to the next dollar
(for example, $1.39 becomes $1 and
$2.50 becomes $3).
If two or more amounts must be
added to figure the amount to enter on
a line, include cents when adding the
amounts and round off only the total.

DRAFT AS OF
September 11, 2018
If the “Yes” box is checked, the
association is authorizing the IRS to
call the paid preparer to answer any
questions that may arise during the
processing of its return. The
association is also authorizing the
paid preparer to:
Give the IRS any information that is
missing from the return;
Call the IRS for information about
the processing of the return or the
status of any related refund or
payment(s); and
Respond to certain IRS notices
about math errors, offsets, and return
preparation.
The association isn’t authorizing
the paid preparer to receive any
refund check, bind the association to
anything (including any additional tax
liability), or otherwise represent the
association before the IRS.
The authorization will automatically
end no later than the due date
(excluding extensions) for filing the
association's 2019 tax return. If the
association wants to expand the paid
preparer's authorization, see Pub.
947, Practice Before the IRS and
Power of Attorney.

Other Forms and
Statements That May Be
Required

See the Instructions for Form 1120
and Pub. 542, Corporations, for a list
of other forms and statements the
association may be required to file.

Assembling the Return

Attach Form 4136, Credit for Federal
Tax Paid on Fuels, to Form 1120-H.
Attach schedules in alphabetical order
and additional forms in numerical
order after Form 4136.

Accounting Methods

Figure taxable income using the
method of accounting regularly used
in keeping the association's books
and records. In all cases, the method
used must clearly show taxable
income. Permissible methods include
cash, accrual, or any other method
authorized by the Internal Revenue
Code.

Change in accounting method.
Generally, the association must get
IRS consent to change either an
overall method of accounting or the
accounting treatment of any material
item. To do so, the association
generally must file Form 3115,
Application for Change in Accounting
Method. See the Instructions for Form
3115 and Pub. 538 for more
information and exceptions. Also see
Rev. Proc. 2018-31, 2018-22 I.R.B.
637; or any successor.

Change of Tax Year

Generally, an association must get the
consent of the IRS before changing its
tax year by filing Form 1128,
Application To Adopt, Change, or
Retain a Tax Year. However, under
certain conditions, an association can
change its tax year without getting the
consent.
For more information on change of
tax year, see the Instructions for Form
1128 and Pub. 538, Accounting
Periods and Methods.

Rounding Off to Whole
Dollars

The association can round off cents to
whole dollars on its return and
schedules. If the association does
round to whole dollars, it must round
all amounts. To round, drop amounts
under 50 cents and increase amounts
-4-

Payment of Tax (Line 24)

The association must pay any tax due
in full no later than the due date for
filing its tax return (not including
extensions). Do not include the
payment with the tax return. However,
see Line 24. Amount owed, later.
Electronic deposit requirement.
Associations must use electronic
funds transfers (EFTs) to make all
federal tax deposits (such as deposits
of employment, excise, and income
tax). Generally, EFTs are made using
the Electronic Federal Tax Payment
System (EFTPS). However, if the
association doesn’t want to use
EFTPS, it can arrange for its tax
professional, financial institution,
payroll service, or other trusted third
party to make deposits on its behalf.
Also, it may arrange for its financial
institution to initiate a same-day tax
payment (discussed below) on its
behalf. EFTPS is a free service
provided by the Department of the
Treasury. Services provided by a tax
professional, financial institution,
payroll service, or other third party
may have a fee.
To get more information about
EFTPS or to enroll in EFTPS, go to
EFTPS.gov, or call 1-800-555-4477
(TTY/TDD 1-800-733-4829).
Depositing on time. For deposits
made by EFTPS to be on time, the
association must submit the deposit
by 8 p.m. Eastern time the day before
the date the deposit is due. If the
association uses a third party to make
deposits on its behalf, they may have
different cutoff times.

Same-day payment option. If the
association fails to submit a deposit
transaction on EFTPS by 8 p.m.
Eastern time the day before the date a
deposit is due, it can still make its
deposit on time by using the Federal
Tax Collection Service (FTCS). To
use the same-day wire payment
method, the association will need to
make arrangements with its financial
institution ahead of time. Please
check with the financial institution
Instructions for Form 1120-H

regarding availability, deadlines, and
costs. Financial institutions may
charge a fee for payments made this
way. To learn more about the
information you will need to provide
your financial institution to make a
same-day wire payment, go to
IRS.gov/SameDayWire.

to pay on time was due to reasonable
cause.

practice for entering the name of the
state or province and postal code.

Reasonable cause determinations.
If the association receives a notice
about a penalty after it files its return,
send the IRS an explanation and we
will determine if the association meets
the reasonable cause criteria. Do not
attach an explanation when the
association's return is filed.

Employer identification number
(EIN). Enter the association's EIN. If
the association doesn’t have an EIN, it
must apply for one. An EIN may be
applied for in the following ways.
Online by visiting IRS.gov/EIN. The
EIN is issued immediately once the
application information is validated.
By mailing or faxing Form SS-4,
Application for Employer Identification
Number.
If the association has not received
its EIN by the time the return is due,
enter “Applied for” and the date you
applied in the space for the EIN. For
more details, see the Instructions for
Form SS-4.

DRAFT AS OF
September 11, 2018
Estimated Tax and
Alternative Minimum Tax

The estimated tax and alternative
minimum tax requirements do not
apply to homeowners associations
electing to file Form 1120-H.
However, a homeowners association
that does not elect to file Form 1120-H
may be required to make payments of
estimated tax. Because the election is
not made until the return is filed, Form
1120-H provides lines for estimated
tax payments and the crediting of
overpayments against tax if estimated
tax payments or overpayments apply.

Interest and Penalties
Interest. Interest is charged on taxes
paid late even if an extension of time
to file is granted. Interest is also
charged on penalties imposed for
failure to file, negligence, fraud,
substantial valuation misstatements,
substantial understatements of tax,
and reportable transaction
understatements from the due date
(including extensions) to the date of
payment. The interest charge is
figured at a rate determined under
section 6621.
Late filing of return. In addition to
losing the right to elect to file Form
1120-H, a homeowners association
that doesn’t file its tax return by the
due date, including extensions, may
be penalized 5% of the unpaid tax for
each month or part of a month the
return is late, up to a maximum of 25%
of the unpaid tax. The minimum
penalty for a return that is over 60
days late is the smaller of the tax due
or $210. The penalty will not be
imposed if the association can show
that the failure to file on time was due
to reasonable cause.
Late payment of tax. An association
that doesn’t pay the tax when due
generally may be penalized 1/2 of 1%
of the unpaid tax for each month or
part of a month the tax isn’t paid, up to
a maximum of 25% of the unpaid tax.
The penalty will not be imposed if the
association can show that the failure
Instructions for Form 1120-H

Other penalties. Other penalties can
be imposed for negligence,
substantial understatement of tax,
reportable transaction
understatements, and fraud. See
sections 6662, 6662A, and 6663.

Specific Instructions

Period covered. File the 2018 return
for calendar year 2018, and fiscal
years that begin in 2018 and end in
2019. For a fiscal or short tax year
return, fill in the tax year space at the
top of the form.
The 2018 Form 1120-H can also be
used if (a) the association has a tax
year of less than 12 months that
begins and ends in 2019, and (b) the
2019 Form 1120-H isn’t available at
the time the association is required to
file its return.
The association must show its
2019 tax year on the 2018 Form
1120-H and take into account any tax
law changes that are effective for tax
years beginning after December 31,
2018.
Name and address. Enter the
association's true name (as set forth
in the charter or other legal document
creating it), address, and EIN on the
appropriate lines. Include the suite,
room, or other unit number after the
street address. If the post office
doesn’t deliver mail to the street
address and the association has a
P.O. box, show the box number
instead.
If the association receives its mail
in care of a third party (such as an
accountant or an attorney), enter on
the street address line “C/O” followed
by the third party's name and street
address or P.O. box.
If the association has a foreign
address, include the city or town,
state or province, country, and foreign
postal code. Do not abbreviate the
country name. Follow the country's

-5-

Note. Only associations located in
the United States or U.S. possessions
can use the online process.
Final return, name change, address change, amended return.
If the association ceases to exist,
file Form 1120-H and check the “Final
return” box.
If the association changed its name
since it last filed a return, check the
box for “Name change.”
If the association has changed its
address since it last filed a return
(including a change to an “in care of”
address), check the box for “Address
change.”
To amend a previously filed Form
1120-H, file a corrected Form 1120-H
and check the “Amended return” box.
Note. If a change in address occurs
after the return is filed, use Form
8822-B, Change of Address or
Responsible Party—Business, to
notify the IRS of the new address. See
the instructions for Form 8822-B for
details.
Item A. Type of homeowners association. See Definitions, earlier.
Item B. 60% gross income test. At
least 60% of the association's gross
income for the tax year must consist
of exempt function income. See
Exempt function income, earlier.
Item C. 90% expenditure test. At
least 90% of the association's
expenditures for the tax year must
consist of expenses to acquire, build,
manage, maintain, and care for
property, and in the case of a
timeshare association, for activities

provided to, or on behalf of, members
of the timeshare association. Include
current and capital expenditures. Use
the association's accounting method
to figure the total.
Include the following.
1. Salary for an association
manager or secretary.
2. Expenses for gardening,
paving, street signs, security guards,
and property taxes assessed on
association property.
3. Current operating and capital
expenditures for tennis courts,
swimming pools, recreation halls, etc.
4. Replacement costs for common
buildings, heating, air conditioning,
elevators, etc.

General business credit (Form
3800).
Note. Homeowners associations
can’t claim the investment credit.
Enter the total applicable credits on
line 21 and attach the appropriate
form(s).

to enter into and maintain an
installment agreement, such as
paying the liability within 24 months
and making all required deposits and
timely filing tax returns during the
length of the agreement. If your
installment agreement is 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.

DRAFT AS OF
September 11, 2018
Don’t include expenditures for
property that is not association
property. Also, don’t include
investments or transfers of funds held
to meet future costs. An example
would be transfers to a sinking fund to
replace a roof, even if the roof is
association property.
Item D. Enter the association's total
expenditures for the tax year including
those expenditures directly related to
exempt function income. Use the
association's accounting method to
figure the entry for item D.
Item E. Show any tax-exempt
interest received or accrued. Include
any exempt-interest dividend received
as a shareholder in a mutual fund or
other regulated investment company.
Line 15. Other deductions.
Expenses, depreciation, and similar
items must not only qualify as items of
deduction, but must also be directly
connected with the production of
gross income to be deductible in
figuring the unrelated taxable income.
Line 20. Multiply the amount on
line 19 (taxable income) by 30%
(0.30) (timeshare associations
multiply line 19 by 32% (0.32)). If the
amount on line 19 is zero or less than
zero, enter -0- on line 20.
Line 21. Tax credits. The
association may qualify for the
following tax credits.
Foreign tax credit (Form 1118).
Qualified electric vehicle credit
(Form 8834).

Line 22. Total tax. If the association
must recapture any low-income
housing credit, qualified electric
vehicle credit, or new markets credit,
include the amount of the recapture in
the total for line 22. To the right of the
entry space, write “LIHTC,” “QEV,” or
“NMTC,” “recapture,” and the amount.
For details, see Form 8611,
Recapture of Low-Income Housing
Credit; Regulations section 1.30-1
(regarding the qualified electric
vehicle credit); Form 8874, New
Markets Credit; or Form 8874-B,
Notice of Recapture Event for New
Markets Credit.
Line 23g. Total payments. Add the
amounts on lines 23c through 23f and
enter the total on line 23g.

Backup withholding. If the
association had income tax withheld
from any payments it received
because, for example, it failed to give
the payer its correct EIN, include the
amount withheld in the total for
line 23g. This type of withholding is
called backup withholding. Show the
amount withheld in the blank space in
the right-hand column between lines
22 and 23g, and write “Backup
Withholding.”
Line 24. Amount owed. If you can’t
pay the full amount of tax you owe,
you can apply for an installment
agreement online.
You can apply for an installment
agreement online if:
You can’t pay the full amount
shown on line 24,
The total amount you owe is
$25,000 or less, and
You can pay the liability in full in 24
months.
To apply using the Online Payment
Agreement Application, go to IRS.gov/
OPA. Under an installment
agreement, you can pay what you
owe in monthly installments. There
are certain conditions you must meet

-6-

Paperwork Reduction Act Notice.
We ask for the information on this
form to carry out the Internal Revenue
laws of the United States. You are
required to give us the information.
We need it to ensure that you are
complying with these laws and to
allow us to figure and collect the right
amount of tax.

You are not required to provide the
information requested on a form that
is subject to the Paperwork Reduction
Act unless the form displays a valid
OMB control number. Books or
records relating to a form or its
instructions must be retained as long
as their contents may become
material in the administration of any
Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section
6103.
The time needed to complete and
file this form will vary depending on
individual circumstances. The
estimated burden for business
taxpayers filing this form is approved
under OMB control number
1545-0123 and is included in the
estimates shown in the instructions for
their business income tax return.
If you have comments concerning
the accuracy of the time estimates or
suggestions for making this form
simpler, we would be happy to hear
from you. You can send us comments
from IRS.gov/FormComments. Or you
can write to the Internal Revenue
Service, Tax Forms and Publications
Division, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Do
not send the tax form to this office.
Instead, see Where To File, earlier.

Instructions for Form 1120-H