Steps Affordable Housing

Schedule D, Page 3, Part X

“The organization has been classified as an other than private foundation and is tax-exempt under section 501(c)3 of the internal revenue code. The code requires that tax-exempt organizations must comply with federal tax law to maintain tax-exempt status and avoid penalties. The organization is subject to a tax on income from any unrelated business income (the organization has no unrelated business income) as defined by section 509 (a)1 of the code. Professional standards prescribe a more likely-than-not recognition threshhold and measurement for the financial statement recognition and measurement of a tax position taken or expected to be taken. The organization has analyzed tax positions taken for filing with the internal revenue service. The organization believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse affect on the organization's financial conditions, results of operations or cash flows. Accordingly, the organization has not recorded any reserves or related accruals for interest and penalties for uncertain tax positions at september 30, 2015. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The organization believes it is no longer subject to income tax examinations for years prior to september 30, 2010. The organization's policy is to classify income tax related interest and penalties as interest expense and other expenses, respectively.”