Tin Can Sailors Inc.

“The collections, which were acquired through purchases and contributions since the organization's inception, are not recognized as assets on the statement of financial position. Purchases of collection items are recorded as decreases in unrestricted net assets in the year in which the items are acquired, or as temporarily or permanently restricted net assets if the assets used to purchase the items are restricted by donors. Contributed colletion items are not reflected on the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes.”

“The organization's collections are made up of artifacts of historical significance, objects of art and documents that are held for their educational, research and curatorial purposes. These are artifacts from destroyers and other vessels, letters and other pieces of naval and maritime history. The organization also houses a library, which contains documents and photographs on the history of destroyers throughout the world. The organization's policies for stewardship of collections are informal.”

“The organization is exempt from federal income tax under section 501(c)(3) of the internal revenue code. Unrelated business income, of which the organization has none, would be subject to federal and state income taxes. Consequently, the accompanying financial statements do not reflect any provision for income taxes. In addition, the organization qualifies for the charitable organization deduction under section 170(b)(1)(a) and has been classified as an organization other than a private foundation under section 509(a)(2). The primary tax positions made by the organization are the existence of unrealized business income and the organization's status as a tax exempt organization under section 501(c)(3) of the internal revenue code. The organization's policy is to analyze and evaluate its tax positions for all open years and make a determination regarding the likelihood of those positions being held under review. For the years presented, the organization has not recognized any tax benefits or loss contingencies for uncertain tax positions based on this evaluation. The organization's forms 990, return of organization exempt from income tax, are subject to examination by the irs, generally for 3 years after they are filed.”

“Sale of inventory on return is reflected as net of expenses 58,292.”

“Exps on the sale of inventory included as a reduction to income per return 58,292.”