Poverello Corporation

Part X, Line 2:

“The Organization is a tax-exempt entity as listed in Section 501(c)(3) and exempt from federal income taxes under Section 5019a) of the Internal Revenue Code (IRC). Donors may deduct up to 50% of contribtuion base as stated in Section 170 of the IRC. The Organization's management believes that all of the activities of the Center are related to it's tax exempt purpose. The Organization has taken the position that they are not subject to any income taxes and are not required to file any federal or state income tax return. The Organization has not accured any tax expense or provision for income taxes in the financial statements, and has determined no provision for uncertain tax positions is required. Generally accepted accounting principles require tax effects from an uncertain tax position to be recognized in the financial statements only if the position is more likely than not to be sustained in the position were to be challenged by a taxing authority. The assessment of the tax psoition is based solely on the technical merits of the position, without regard to the liklihood the position may be challenged. If an uncertain tax position meets the more-likley-than-not theshold, the largest amount of the tax benefit that is greater than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. Since the Corporation is considered to be tax exempt from income taxes and all activities are considered to be related to it's exempt purpose, management does not believe that any material uncertain tax positions exist. The tax periods open to inspection by taxing authorities would be 2011-2013.”