A March 2026 records request uncovered that a major Chicago condominium association’s managing agent handled a state tax deficiency entirely without board knowledge or approval. Documents reveal that a Notice of Deficiency, CPA engagement, protest filing, Power of Attorney, and eventual refund were all executed without a board resolution—and only disclosed after an owner demand.
A forensic review of the disclosed file identifies critical irregularities, including a retroactively assembled protest package, a 13-years-late tax return created in 2025, a misidentified tax form in the CPA’s cover letter, and a Power of Attorney executed in violation of the association’s governing documents. The engagement also raises serious independence concerns, involving undisclosed relationships between the managing agent, a former employee acting as CPA signatory, and a father-son CPA team tied to a pending ethics complaint.
Beyond the procedural issues, the matter exposes deeper risks: potential long-term tax misreporting, unapproved expenditures exceeding budget, and a pattern of restricted information flow to both the board and unit owners. The case highlights how governance breakdowns, undisclosed conflicts, and lack of oversight can allow management to effectively operate outside board control—leaving fiduciaries uninformed and owners exposed.
