USA “Waive association dues” is a tax fraud?


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4/7/2019 I was selected as the president of this HOA. We are a small HOA of 20 townhouses. All the HOA board members and the president and the secretary are volunteers.
9/28/2019 HOA meeting has approved that the treasurer lady can waive her association due $149/month for the whole year of 2019. In this way, HOA need to issue W-9 form to her to report her annual income of $1788 in 1099 form when filing 2019 HOA tax return.
This treasurer lady refused to fill the W-9 form. How can the HOA do in the next step as usual?
Thank you for your help and looking forward to your reply.
 
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kirby

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So, you need to elect a new treasurer.
Make sure someone else reviews the books and reconciles the checking accts - given that your treasurer has no problem in evading tax law.
Next time you give someone this benefit, get the W9 FIRST before you allow them to not pay the dues.
And when it is time to issue a 1099 to this person, follow this method (last example for the independent contractor):
 
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bklynboy

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Don't waive the dues then until they accept that the waiver will result in income to her and require a W-9.
 

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