Maine Alliance for Road Associations
How do Mara members file taxes for their Road Association bank account? There is a form 1120-H for Homeowners associations. Not sure if this is also for Road Associations.
Road associations might be eligible to use 1120-H but you have to read the details of using it in the instructions for 1120-H. Such as how is the property zoned and used i.e. is it residential and are a certain percentage of buildings residential, etc. etc. It is much easier than the 1120 form. If you use the new "Keyword" search function trying "taxes", "federal tax", "tax filing" etc. you will get many hits asking the same question with many good responses.
I don't know how it works for non-profit road associations. But for those formed as statutory road associations under 23 MRSA 3101, I remember this question coming up at a MARA conference. I believe the answer was that you do not even have to file as long as ALL of the association's income goes towards items allowed under section 3101. (I would think that should apply even if you have a capital account that will eventually be used for those same purposes, but it would be wise to check with someone more qualified than I am.) Our association filed for the first few years before we learned that it wasn't necessary, since we never owed anything anyway. The home owner's association form is the correct one to use, and as long as all your income is spent on the road, it's easy to fill it out. You basically say, "We took in $xyz, of which $xyz went to road maintenance."
The Maine Alliance for Road Associations