Geriatric Resource Network

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“FIN 48 Footnote The Internal Revenue Service has previously determined that MaineHealth and its subsidiaries (except Maine Medical Partners (MMP) (a subsidiary of MMC)) are organizations as described in Section 501(c)(3) of the Internal Revenue Code (IRC) and are exempt from federal income taxes on related income pursuant to Section 501(a) of the IRC. MMP had significant net operating loss carryovers at September 30, 2018 and 2017. A valuation allowance has been provided for the entire deferred tax benefit for the net operating losses, due to uncertainty of realization. MMP did not have material taxable income in 2018 and 2017. Synernet, a for profit organization, recorded income tax expense for the year ended September 30, 2018. Accordingly, a provision for income taxes has been made in the accompanying consolidated financial statements. MaineHealth recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount of benefit that is greater than fifty percent likely to be realized upon settlement. Changes in measurement are reflected in the period in which the change in judgment occurs. MaineHealth did not recognize the effect of any income tax positions in either 2018 or 2017. On December 22, 2017, the President signed into law H.R.1, originally known as the Tax Cuts and Jobs Act. The new law includes several provisions that result in substantial changes to the tax treatment of tax-exempt organizations and their donors. The Corporation has reviewed these provisions and the potential impact and concluded the enactment of H.R.1 will not have a material effect on the operations of the organization.”