Time’s running out for nonprofits to file with the IRS

HANO asks fellow nonprofits to join the National Council of Nonprofits’ state nonprofit association network, the Internal Revenue Service and others to spread the word – to small nonprofits in particular – that they MUST file with the IRS annually.

Many small nonprofits will lose their tax-exempt status if they have not filed in the past three years and fail to file by October 15th of this year. The IRS has announced a one-time relief program for nonprofits required to file the 990-N or 990-EZ that missed their deadline earlier this year.

More than 1,700 small nonprofits in Hawaii could lose their tax-exempt status for failing to file annual returns, and the IRS is offering them one last chance to keep their charitable standing. Many had been exempt from annual IRS filings in the past and were not aware of the current requirements.

Well-known nonprofits such as the Honolulu Boy Choir and the Friends of the Royal Hawaiian Band were among those listed on the IRS website as being at risk of losing their tax-exempt status. Others range from the Kahala Business Association to the Kalihi Valley Homes Tenants Association, along with various parent-teacher associations and chapters of the American Legion. The IRS list of nonprofits at risk of losing their tax-exempt status, as well as guidance on how to preserve that status is available at  http://hsblinks.com/2l2

The change dates back to 2006, when Congress passed a law mandating that all tax-exempt organizations, except churches and church-related groups, file annual returns with the IRS starting in 2007. Those who fail to file for three consecutive years lose their tax-exempt status.

The Office of Hawaiian Affairs is offering workshops to help small Native Hawaiian serving organizations on Maui in jeopardy of losing their tax-exempt status meet the IRS compliance requirements by the Oct. 15 deadline. It is open to representatives of small Native Hawaiian serving organizations, including directors, staff, volunteers or members.

"Small organizations" are those with less than $25,000 annual revenue. "Native Hawaiian serving organizations" are organizations that serve Native Hawaiian beneficiaries are part of their programs, projects or mission.

There will be two workshops on Maui. They will be held at Maui Ecomomic Opportunity's Family Center, 99 Mahalani St., Wailuku on Oct. 4. The first workshop will start at 1 p.m. and the second workshop will start at 5:30 p.m. Click here to register.