REVENUE RULING 70-604

As provided for in Revenue Rulings 70-604 and 75-371, any excess membership income at the end of an association's fiscal year must be applied to next year's budget or refunded to the membership. The Ruling requires the membership rather than the Board vote on the issue.

Most associations vote on it during their annual meetings. The resolution can be on the ballot (along with the election of directors) or done by voice vote and recorded in the minutes of the meeting.

Updated 8/21/2007