In response to your concerns regarding tax exempt status, we finally received the final ruling
April 13, 2017
Dear Brothers,
Our National Top 4 officers have been wrestling with this IRS problem that has been plaguing many of our Divisions for the past four or five years. After numerous meetings with IRS officials in several states, our National Treasurer Sean Pender has put together a synopsis on what has to be done to be reinstated under the umbrella of our National 501(c)8. It is important that every AOH entity comply with these IRS mandates.
Less than one third of our Divisions or entities currently are recognized with the IRS. Our goal is to have 100 percent compliance by all in the next two years. We ask that all Presidents and Financial Secretaries read what Brother Pender has put together and begin your compliance immediately.
God Bless
In Our Motto
James F. McKay III
National President
Brothers,
Our conversations with the IRS were recently completed and they will not offer any relief or adjustments to our divisions and boards that received revocation notices. The root cause of the revocation letters was that the division and boards did not file tax returns for three calendar years. Regrettably there is no dispute process, once three years of returns are not filed, the revocation process commences.
The following information has been reviewed in emails, mailings and Hibernian Digest articles,
The IRS told the AOH that every division and board must have their own EIN number and file a proper tax return (990). This goes back at least to the Cincinnati convention in 2010.
More recently we promoted this in the Digest on a regular basis and even sent a letter to every division in the country in 2015. Unfortunately, many divisions did not take the time to file their taxes and now find themselves with an IRS notification they have lost their tax-exempt status.
Divisions and boards have been instructed that:
- The AOH is a 501C8
- Every division and board must have their own EIN number.
- Every division and board must yearly file a 990, 990EZ or 990N in order to maintain tax-exempt status and maintain subordinate status to the National AOH parent group GEN number 0832.
- Most divisions can file the simple online postcard or 990N form
- The simple filing of the correct tax returns on a yearly basis will allow you to maintain tax-exempt AND because of your valid/current tax exempt status you will not have to pay taxes or penalties
- Form 990, 990-EZ, or the online 990N must be filed by the 15th day of the 5th month after the end of your organization’s accounting period. Thus, for a calendar year taxpayer, Form 990, 990-EZ, or 990N is due May 15 of the following year.
If you received a letter from the IRS stating you have lost your exemption
- ) The IRS has removed you as a subordinate to the National AOH parent group GEN number 0832,
- ) you cannot classify yourself as a tax-exempt organization, until you complete the reinstatement process
- ) the reinstatement process is described in the attached file. It explains how to fix this issue and become reinstated. There is a $400 or $850 penalty to get reinstated.
- ) In addition to the fee, divisions or boards must complete forms 1024 and 8718.
The attached file Tax reinstatement options lists three possibilities based on annual receipts and assets of the division or board. The vast majority of our boards should be able to choose option one. Please note that when filing your re-instatement request, for consistency and uniformity purposes the name associated with your EIN should be: Ancient Order of Hibernians in America and your divisions state number, county abbreviation and division number. For example, my division is 28 ME 01; 28 for New Jersey; ME for Mercer County and 01 for division 1. County and State boards should use Ancient Order of Hibernians in America and their state or county name. For Example Ancient Order of Hibernians in America, New Jersey State Board.
Once the paperwork is filed, and the fee paid, the IRS will review tax-exempt status and should approve reinstatement as a tax-exempt organization. At that point divisions and boards should receive a letter of notification of resumption of exempt status from the IRS. At that time, they must contact the National Secretary’s office so that we can add the division or board back as a subordinate unit to the Ancient Order of Hibernians in America parent organization 11-1548590, GEN number 0832. Only the National Board can add divisions and boards back as a subordinate to the parent. Divisions and boards will need to scan or fax their reinstatement letter to the National Secretary’s office. Once that letter is received the National Secretary will update our records to document your reinstatement as a tax-exempt organization. The office of the National Secretary will forward that information to the National Treasurer who will submit to the IRS a request to add that division or board back to the Ancient Order of Hibernians in America parent organization 11-1548590, GEN number 0832.
Brothers your prompt attention to this matter will allow us to promote compliance and uniformity within our order.
The steps that our divisions and boards need to follow for re activation of exempt status are also defined at
https://www.irs.gov/charities-non-profits/charitable-organizations/automatic-revocation-how-to-have-your-tax-exempt-status-retroactively-reinstated This site andwww.irs.gov/eo
are good references for questions pertaining to EIN status. IRS questions regarding EIN and tax exempt status can be directed to 877-829-5500
In our motto of friendship, unity and Christian charity
Sean Pender
National AOH Treasurer