Tax Issues

The law is clear that an association’s Board of Directors is responsible for the filing of the annual federal and State income tax returns, regardless of who actually prepares them. In addition, the law imposes a fiduciary duty on directors. As a result, Board members should take an active role in understanding the tax issues involved because a substantial overpayment or underpayment of an association’s income taxes could be construed as a breach of their fiduciary duty. This memorandum deals [...]