Deep Foundations Institute

PART X, LINE 2:

“The association is an approved charitable, nonprofit organization exempt from federal income taxation under section 501(c)(6) of the internal revenue code. The association is an exempt entity under title 15 of the state of new jersey, corporations and associations not-for-profit act. Accordingly, no provision for federal or state income tax has been presented in the accompanying financial statements. Management has stated that all required tax returns will be filed and applicable taxes paid in a timely manner. The association is subject to unrelated business income tax on a portion of its consulting income. 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 adoption of this change in accounting principle had no cumulative effect on amounts recorded in the financial statements for the years ended december 31, 2024 and 2023. The association does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the year ended december 31, 2024 and 2023. However, the association is subject to regular audit by tax authorities, including a review of its nonprofit status, which the association 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. The association files an informational tax return with the internal revenue service on an annual basis - form 990. In addition, the association is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes, which requires the association to file form 990-t with the irs. The association is no longer subject to tax examinations by the internal revenue service for federal tax returns within certain statutorily defined periods.”