New Jersey Association of School Administrators

PART X, LINE 2:

“The association is a not-for-profit corporation as described in section 501(c)(6) of the internal revenue code and is exempt from federal income taxes on all income except unrelated business income as noted under section 511 of the internal revenue code. Internal revenue code section 513(a) defines an unrelated trade or business of an exempt organization as any trade or business which is not substantially related to the exercise or performance of its exempt purpose. The association is also exempt under title 15 of the state of new jersey corporations and associations not for profit act. The advertising income derived from the certain publications is considered unrelated business income. Since related expenses exceeded the income, no provision for income taxes has been accrued in the accompanying financial statements. The association follows the provisions of fasb asc, 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 association does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the fiscal year ended june 30, 2022. However, the association is subject to regular audit by tax authorities, including a review of its nonprofit status which management believes would be upheld upon examination. The association 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. As required by law, the association files informational returns with the united states federal jurisdiction on an annual basis - form 990 and form 990-t with the internal revenue service. These returns are subject to examination by the internal revenue service within three years form the latest filing date.”