Which of the following is a typical example of a wrongful act that may lead to claims against the association?

• A. Failure to file taxes.
• B. Hiring qualified staff.
• C. Timely maintenance of reserves.
• D. Delivering core services.

Answer: (A)

The main idea here is that a community association has fiduciary responsibilities to its members, which include complying with legal and tax obligations. Failing to file taxes is a legal failure that can bring penalties, interest, and potential liability for the association. It can also create grounds for members to claim mismanagement or breach of duty by the board. In short, not filing taxes is a legal risk and a wrongful act that can expose the association to claims.

By contrast, hiring qualified staff, keeping up with reserve maintenance, and delivering core services are about fulfilling proper governance and operations; they are positive, not wrongful, actions.