Family Day Care Program Inc.

“The agency is exempt from federal income taxes as an organization formed for charitable purposes under section 501(c)(3) of the internal revenue code. The agency is also exempt from state income taxes. Donors may deduct contributions made to the agency within the internal revenue code regulations. The agency recognizes the tax benefit from any uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the tax position. Any tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Management has analyzed the agency's tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open years (2011-2013) or expected to be taken in the agency's 2014 tax returns. The agency identifies its major tax jurisdictions as u.s. Federal and the commonwealth of massachusetts; however, the agency is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The agency also follows the policy to recognize interest and penalties related to unrecognized tax benefits (if any) in income tax expense. No such interest and penalties have been accrued as of june 30, 2015.”

“Management has evaluated tax positions against the criteria established by professional standards and believes there are no tax positions requiring accounting recognition in the financial statements. Management does not believe its evaluation of tax positions will significantly change within twelve months of june 30, 2015. Any changes in tax positions will be recorded when the ultimate outcome becomes known. The agency's income tax returns are subject to examination by taxing authorities generally for the years ended june, 2013, 2012, and 2011.”