With several dozen Las Vegas Homeowner Associations mired in the muck of a federal corruption investigation, members of one association have learned they may be targeted by huge IRS assessments and fines.
Sun City Summerlin Community Association is not one of the Nevada HOAs where investigators have found corrupt cops and judges and lawyers. But this HOA’s accounting practices are attracting lots of federal attention.
The HOA operates several commercial golf courses and restaurants. So in addition to HOA dues, there’s a chunk of money coming into the coffers of the HOA from outside sources. Theoretically, taxes should be paid on that income. But Sun City Summerlin Association has been deferring millions of dollars on its annual tax forms. Homeowners don’t seem to be aware that their snowbird homes may end up as tax magnets instead of tax shelters.
Sun City Summerlin is a not-for-profit organization, so theoretically homeowners should have been given some rather large refunds. Instead, each homeowner may be given some rather large surprise tax assessments.
Other Homeowners Associations across the country area are closely watching what happens in Las Vegas. Elderly homeowners may suddenly discover a downside to investing their life savings in a retirement home in the Sun Belt.