Annual Meeting Questions:
Q: Why are we voting on the IRS resolution this year?
A: We have done this in past years, and it is typically voted by acclamation during the treasurers report. We have updated the language for this resolution with our auditors this year. Since we will not be in person for the Annual Meeting, we needed to have the vote on paper which we have never done before. One of the purposes of Revenue Ruling 70-604 is to allow a homeowners association such as KCOA to avoid taxation on its excess membership income by carrying over the excess income to the following tax year. This ruling is viewed as an elective, beneficial ruling. Elective, because it does not automatically apply, and beneficial because there is no downside risk to making an election under Revenue Ruling 70-604.