September 20, 2024
Michigan Rising Action Files IRS Complaint Against Jackson Mayor Daniel Mahoney’s “Many Hands Community Services” Nonprofit
Apparent Tax Law Violations and Clear Failure to File Required Forms Prompt Call for Immediate Investigation
LANSING, MI – September 20, 2024 – Michigan Rising Action, a leading conservative watchdog organization, today filed a formal complaint with the Internal Revenue Service (IRS) against Many Hands Community Services (MHCS) and its principal officer, Daniel Mahoney, who is the current mayor of Jackson and Democrat candidate for State Representative in Michigan.
The complaint alleges that MHCS, a former 501(c)(3) tax-exempt organization, and Mahoney violated federal law by misrepresenting the organization’s financial activity to avoid filing IRS Form 990 beginning in at least the 2022 tax year. Michigan Rising Action is calling for a thorough IRS investigation into the activities of Daniel Mahoney and the operations of MHCS.
“Our research indicates that Daniel Mahoney’s nonprofit had gross receipts exceeding the threshold for filing a simplified Form 990-N, yet failed to file the required full Form 990. Never once did Mahoney bother to follow the law.” said Abby Mitch, executive director of Michigan Rising Action. “This raises serious questions about Daniel Mahoney’s conduct as head of the organization and ability to behave ethically and transparently as an elected official.”
Key points from the complaint include:
- MHCS received at least $190,000 in gross receipts from 2020 to 2022, based on publicly available information.
- The organization was required to file IRS Form 990 beginning in at least the 2022 tax year due to average gross receipts exceeding $50,000 over a three-year period.
- MHCS has not filed any tax returns with the IRS since 2020 and lost its tax-exempt status in 2024.
- The State of Michigan dissolved MHCS in December 2023 for failure to file Annual Reports.
The complaint cites potential violations of multiple federal statutes, including:
- 26 U.S.C. 6652 – Civil penalties for failure to file required returns
- 26 U.S.C. 7203 – Criminal penalties for willful failure to file returns or supply information
- 18 U.S.C. 1001 – False statements or representations to the federal government
“Transparency and accountability are crucial for maintaining public trust in our institutions and elected officials,” Mitch added. “We believe this situation warrants a prompt and thorough investigation by the IRS to determine the full extent of any potential violations and to ensure compliance with federal tax laws.”
Michigan Rising Action is urging the IRS to investigate MHCS and Daniel Mahoney, assess appropriate penalties for any confirmed violations, and take necessary actions to address any undisclosed financial activities that may be uncovered during the investigation.
According to the IRS website, the agency will impose a penalty of $20 per day for each day a 990 return is late for an organization with gross receipts less than $1,208,500. The maximum penalty is $12,000, or 5 percent of the organization’s gross receipts, whichever is less.
The full text of MRA’s complaint to the IRS and supporting information can be found below:
MHCS-Mahoney-IRS-Complaint-9.20.24.docxIRS-Complaint-Attachments-9.19.24