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August 14, 2009
Annual Audit
Hey All,
We’re a 5 unit coop in the process of looking for a new tax accountant and have a couple questions about the annual audit. Is it really required by law to perform the audit? Does anyone know the specifics of the law, or can at least point me in the direction of the written word? Is there a penalty for not complying? Are there any exemptions?
It sounds like a lot of coops don’t bother with it and manage to fly under the radar without worry. My three major concerns in doing this would be dealing with the IRS, applying for a loan, and trying to sell a unit. Seems like most banks and brokers are only concerned with the financial statement and our coops expenses are very straight forward, so I’m not sure I see the need to pay close to 1K for an audit. I know there are a lot of folks out there on both sides of the fence and I welcome your opinions.
Best,
Charlie
Comments
I'm not sure for coops, but our 6-unit condo doesn't do a formal audit (the financial statements a sort of a mini-audit, but with only $10k a year in expenses, a formal audit would be silly).
You should check out your by-laws to see if those require an audit. And, whatever accountant you're using for the tax filings should be able to advise you on whether NY State (or City?) law requires an audit.
Posted by: curiositykilledthecat at August 14, 2009 9:02 PM
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