Bronx Realty Advisory Board Inc

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“The advisory board was granted tax-exempt status under section 501(c) (6) of the internal revenue code. Under this provision, the advisory board is exempt from federal and state income taxes and, therefore, has made no provision for income taxes in the accompanying financial statements. The advisory board follows the accounting standard for uncertainty in income taxes. The standard prescribes a minimum recognition threshold and measurement methodology that a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. It also provides guidance for de-recognition, classification, interest and penalties, disclosure and transition. In assessing the realizability of tax benefits, management considers whether it is more likely than not that some portion or all of any tax position will not be realized. Management believes it is more likely than not that the advisory board will realize all tax benefits. Management believes that its tax-exempt status would be sustained upon examination. If applicable, the advisory board would classify interest and penalties on underpayments of income tax as management and general expenses. The advisory board is subject to audit by tax authorities. Management believes that it has appropriate support for the positions taken on its tax returns. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. The advisory board files informational returns in the federal jurisdiction. With few exceptions, the advisory board is no longer subject to federal examinations by tax authorities for fiscal years ended before 2011.”