Because of the time-consuming nature of Form 1120, many HOAs are eager to bypass this form. Certain homeowners associations may have this option if more than 60% of the annual income of the association comes from sources such as membership dues, fees, interest, or special assessments. Also, 90% or more of these funds must be used towards the maintenance or addition of the property itself. If these two requirements are met, the HOA can utilize section 528 of the tax code and file Form 1120-H instead.