Greater Reading Chamber of Commerce & Industry

PART X, LINE 2:

“As a not-for-profit organization, the organization is generally exempt from federal and state income taxes. The organization is subject to federal and state income taxes on unrelated business income. The organization recognizes penalties and interest accrued related to income tax liabilities in the provision (benefit) for income taxes in its statements of income. At december 31, 2019 and 2018, there was no accrual for the payment of penalties and interest. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying statement of financial position along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The organization files informational returns (irs form 990) in the u.s. Federal jurisdiction. The organization's tax returns are not subject to examination through the year ended june 30, 2016.”