Mesa Ho Ho Kam Foundation Inc.

Schedule D, Page 3, Part X

“The organization has been granted tax-exempt status under section 501(c)(3) of the internal revenue code. However, income from certain activities not directly related to the organization's tax-exempt purpose may be subject to taxaton as unrelated business taxable income. During the years ended august 31, 2020 and 2019, the organization did not have any unrelated business taxable income; therefore, the accompanying financial statements contain no provision for income taxes. The organization follows the guidance issued by the financial accounting standards board (fasb) related to accounting for income tax uncertainties. Under this guidance, the organization accounts for the effect of any uncertain tax positions based on whether it is "more-likely- than-not" that the position will be sustained by the taxing authority upon examination. The organization routinely evaluates potential uncertain tax positions. The organization has identified its status as an exempt organization as a tax position; however, the organization has determined that such tax position does not result in an uncertainty that requires recognition. Interest and penalties, if any, are accrued as a component of management and general expenses when assessed. As of august 31, 2020 and 2019, the organization had not accrued interest or penalties related to uncertain tax positions. The organization files information returns in the u.s. Federal jurisdiction and with the arizona attorney general's office. Federal returns are generally subject to examination for a period or three years after they have been filed, and state returns are generally subject to examination for a period of four years after they have been filed. For tax years 2018 and after, tax exempt organizations are no longer required to file arizona form 99 or copies of their federal form 990 with the state of arizona.”