Massachusetts Asian AIDS Prevention Project Inc.

PART X, LINE 2:

“The agency is exempt from federal income taxes as provided under internal revenue code ("irc") section 501(c)(3), and is not classified as a private foundation. Therefore, no provision or liability for income taxes has been included in the financial statements. Contributions made to the agency are deductible by donors as provided in irc section 170. Accounting principles generally accepted in the united states of america prescribe the threshold a tax position is required to meet before being recognized in the financial statements. A liability for uncertain tax positions is recognized and recorded as a component of current income tax expense for differences between financial and income tax reporting positions which do not meet this threshold. Any interest and penalties related to uncertain tax positions are recorded as a component of income tax expense. The agency has reviewed its tax positions that remain subject to examination by tax authorities and has not identified any material uncertain tax positions and thus has not recorded any liability at june 30, 2014. The agency's federal and state tax returns are subject to possible examination by tax authorities until the expiration of the related returns statutes. In general, the federal and state tax returns have a three-year statute of limitation from the date the tax returns were due or filed, whichever is later. The agency is no longer subject to examinations by tax authorities for years prior to 2010, and has no open examinations as of the date of the financial statements.”