Due to Public Act 134 of 2013, effective January 2014, the Condominium Act of Michigan, Section 57 requires condominium associations with annual revenues over $20,000 to do one of two things:
This was a significant change from the previous law, which most agree was ambiguous and may or may not have required an independent CPA to perform an audit, review or compilation.
The law also requires that your association's financial statements must be available to co-owners and mortgage holders.
Also, please note that although this law only applies to condominium associations, federal tax law has not changed - all condominium and homeowner associations are still required, no matter the amount of annual revenues, to file an annual federal tax return. Our fee for a standard condominium or homeowner Form 1120-H federal tax return is $100 - $200.
Whether you want a CPA Review, that complies with #1 above or your association opts out of the audit/review requirement and only wants a Compilation and/or federal tax return done, we at Michigan Community Auditors are ready to fulfill your independent CPA needs.
- Have an outside CPA perform a formal independent audit or formal independent review of your association's year end financial statements or
- Have a majority of the members of your association, not just your board of directors, vote annually to opt out of #1.
This was a significant change from the previous law, which most agree was ambiguous and may or may not have required an independent CPA to perform an audit, review or compilation.
The law also requires that your association's financial statements must be available to co-owners and mortgage holders.
Also, please note that although this law only applies to condominium associations, federal tax law has not changed - all condominium and homeowner associations are still required, no matter the amount of annual revenues, to file an annual federal tax return. Our fee for a standard condominium or homeowner Form 1120-H federal tax return is $100 - $200.
Whether you want a CPA Review, that complies with #1 above or your association opts out of the audit/review requirement and only wants a Compilation and/or federal tax return done, we at Michigan Community Auditors are ready to fulfill your independent CPA needs.