January 25, 2010

Press Release - For Immediate Release

Porter & Company, CPAs recently received notice from the IRS that an application prepared by the firm for a homeowners association in Hawaii has been approved by the IRS for tax exempt status under Code Section 501(c)(4).

This master association has almost 3,000 lots, and is home to more than 8,000 residents.  The Association is not gated, and contains 20 smaller condominium and single family home associations.  Maintenance activities include maintaining parks, trails and paths that are open to the general public.  The Association’s clubhouse is also available for public use on a fee basis.  In addition, the Association’s patrol service coordinates with local law enforcement agencies in combating crime, and the Association has a very active graffiti prevention and cleanup program.

Tax refunds claimed for the tax years open under the statute of limitations far exceeded all costs related to the filing, and the Association’s future tax savings are substantial each year.

Porter and Company, CPAs has prepared more tax exemption applications than any other tax professional serving the HOA industry.  All exemption applications submitted that have been processed by the IRS have ultimately been approved.  We usually have several applications pending at any given time.  Most tax exemption applications submitted have been for associations allowing substantial public access to their common areas, such as the one in Hawaii described above.  However, we have also successfully gained tax exempt status for several gated associations that meet other criteria, and have successfully regained tax exempt status for several associations that had previously had their exempt status revoked by the IRS.  Our expertise with the tax exemption process has benefited many associations across the country.

For more information on tax exemptions for homeowners associations, visit our website or contact Gary Porter CPA at (805) 496-1883 or by This email address is being protected from spambots. You need JavaScript enabled to view it..

December 3, 2009

Press Release - For Immediate Release

Gated association gains tax exempt status

Porter & Company, CPAs recently received notice from the IRS that a homeowners association in the southeastern U.S. has been approved by the IRS for tax exempt status under Code Section 501(c)(4). 

This association consists of more than 5,000 lots and is a gated community.  It is very rare for a gated association to qualify as a tax exempt social welfare organization.  However, this association qualified for tax exemption because it is large enough to constitute a community in and of itself, and because it also performs a number of quasi-governmental functions. 

The activities performed include road maintenance for more than 40 miles of roads, security patrol coordinated with Sheriff’s department, architectural review board, and community governance.  The Association is also home to a County Fire Department station, and the association is designated as a first responder in case of emergencies.  Recreational activities consist of boating, equestrian trails, and sports courts serving the community.  The Association also operates timeshare units that are available to the public.

Porter & Company, CPAs has prepared more tax exemption applications than any other tax professional serving the HOA industry, and we have successfully regained tax exempt status for several associations that had their exempt status revoked by the IRS.  Our experience has benefited many associations across the country. 

For more information on tax exemptions for homeowners associations, visit our website or contact Gary Porter CPA at (805) 496-1883 or by This email address is being protected from spambots. You need JavaScript enabled to view it..

November 16, 2009

Press Release - For Immediate Release

Porter & Company recently received notice from the IRS that two more associations have been approved by the IRS for tax exempt status under Internal Revenue Code Section 501(c)(4). One association, located in Orange County, California, consists of approximately 2,000 homes and provides trails and nature preserves to the surrounding communities. The other association, located in San Diego County, California, consists of almost 3,000 homes and maintains streets, trails, and a nature preserve open to the public. The addition of these two association brings the count to more than 60 associations successfully approved, with none denied exempt status. Cumulative tax savings to our clients now exceeds $17 million.

And, we still have several exemption applications pending for associations from Hawaii to the east coast and points in between.

Porter & Company has prepared more tax exemption applications than any other tax professional serving the HOA industry. We have successfully regained tax exempt status for several associations that had their exempt status revoked by the IRS. We have successfully re-filed for exempt status where others tried and failed. We have successfully gained exempt status where other tax professionals and advisors stated that the associations would not qualify. We snatched one association from the gaping maw of the IRS just as it was ready to issue a significant tax deficiency notice based on the IRS audit of the Form 1120 tax return. Our experience has benefited many associations all across the country.

For more information on tax exemptions for homeowners associations, visit our website or contact Gary Porter CPA at (805) 496-1883 or by This email address is being protected from spambots. You need JavaScript enabled to view it..