Leviticus 2523 Alternative Fund Inc

PART X, LINE 2:

“The organization is organized under the not-for-profit corporation law of the state of new york. The organization has been granted exemption from federal income taxation pursuant to section 501(c)(3) of the internal revenue code. The accounting standard for uncertainty in income taxes 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 derecognition, classification, interest and penalties, accounting in interim periods, 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. The ultimate realization of such tax positions is dependent upon the generation of future income. Management considers projected future income and tax planning strategies in making this assessment. The organization does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the year ended december 31, 2013. However, the organization may be subject to audit by tax authorities. The organization 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. Management believes that its tax-exempt status would be sustained upon examination. The organization files informational returns in the federal and new york state jurisdictions. The organization is generally no longer subject to income tax examinations by the internal revenue service or new york state for returns filed before 2010.”