Contrary to the misconception that they are tax-exempt, condo associations, classified as common interest realty associations, must file federal tax returns.
see this link
https://trybeem.com/blog/do-condo-associations-file-tax-returns/
Electing To File Form 1120-H
A homeowners association elects to take advantage of the
tax benefits provided by section 528
https://www.law.cornell.edu/uscode/text/26/528
by filing a properly
completed Form 1120-H. The election is made separately
for each tax year and must generally be made by the due
date, including extensions, of the income tax return.
This extension does not extend the time to pay the tax.
Once Form 1120-H is filed, the association cannot
revoke its election for that year unless the IRS consents.
The association may request IRS consent by filing a ruling
request. A user fee must be paid with all ruling requests.
For more information on ruling requests, see Rev. Proc.
2024-1, 2024-1 I.R.B. 1 (or any successor), available at
IRS.gov/irb/2024-01_IRB#RP-2024-01.
If the association does not elect to use Form 1120-H, it
must file the applicable income tax return, for example,
Form 1120, U.S. Corporation Income Tax Return.
A homeowners association should compare its total tax
computed on Form 1120-H with its total tax computed on
Form 1120. The association may file the form that results
in the lowest tax. (From 1120-H instructions)
