Arc Cape May Housing Inc.

Part X : FIN48 Footnote

“Arc cape may housing, inc. Is exempt from federal income taxes under the provision of section 501 (c)(3) of the internal revenue code, and is also exempt from state income taxes under chapter 104 of title 54, revised statutes of new jersey law. The organization has also been classified as entities that are not private foundations within the meaning of section 509 (a) and qualify for deductible contributions as provided in section 170(b)(1)(a)(vi). All applicable returns have been filed and payments were made in a timely fashion.effective december 15, 2009, the organization adopted asc 740-10-50-15, accounting 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 derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition as they relate to those tax positions. The cumulative effect of this change in accounting principle was immaterial.the organization does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the fiscal year ended june 30, 2014. However, the organization is subject to audit by tax authorities. The organization believes that it has appropriate support for the tax positions taken on its 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 its nonprofit status would be upheld upon examinationas required by law, the organization files informational returns with both the united states federal and state of new jersey jurisdictions on an annual basis - form 990 with the internal revenue service, and form cri-300 with the state. The organization is subject to examinations at any time within three years from the latest filing date for federal and four years from the latest filing date for new jersey.”