Companion Home Services Inc

PART X, LINE 2:

“Home care, vna, cch, vna foundation, home aides, eldercare and chs are not-for-profit corporations and qualify as tax-exempt organizations under section 501(c)(3) of the internal revenue code. Options, is a single member llc is consolidated for tax purposes with vna, its sole member. The operations of options is part of the exempt purpose of vna and qualifies for tax-exemption under 501(c)(3) of the internal revenue code. Ihcs is a taxable entity. Vna foundation is classified as a private foundation under section 509(a) of the internal revenue code. Vna foundation is subject to federal excise taxes imposed on private foundations. The excise tax is imposed on net investment income, as defined under federal law, which includes interest, dividends, and net realized gains on the sale of investments. Income taxes are provided for the tax effects of the transactions reported for ihcs in the consolidated financial statements. Income taxes consist of taxes currently due plus deferred taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement reported amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company accounts for interest and penalties related to uncertain tax positions as interest expense and office and general expense, respectively. As of december 31, 2014 and 2013, the company did not have any unrecognized tax benefits or any related accrued interest or penalties. The tax years open to examination by federal and new york state taxing authorities are 2011 through 2014.”