Hardwood Federation Inc

PART X, LINE 2:

“The federation is generally exempt from federal income taxes under the provisions of section 501(c)(6) of the internal revenue code and is not considered to be a private foundation. The pac is generally exempt from federal income taxes, other than on net investment income, under the provisions of section 527(e) of the internal revenue code and is not considered to be a private foundation. At december 31, 2014, no provision for income taxes was made as the pac had no net investment income. Income, which is not related to exempt purposes, less applicable deductions, is subject to income taxes. The organization had no unrelated business income for the year ended december 31, 2014. The organization follows the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under this guidance, the organization may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the organization's tax positions and concluded that the organization had taken no uncertain tax positions that require adjustment to the consolidated financial statements to comply with the provisions of this guidance. Generally, the organization is no longer subject to income tax examinations by the u.s. Federal, state or local tax authorities for years before 2011.”