California Police Chiefs Association

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“California Police Chiefs Association has been recognized by the IRS as exempt from federal income taxes under Internal Revenue Code (IRC) Section 501(c)(6) and related California code sections. The Association is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, the Association is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purpose. The Association files an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS to report its unrelated business taxable income from advertising revenue and political advocacy activity. During the year ended June 30, 2025, the Association had unrelated business income, the current income tax expense on unrelated business income for the year ended June 30, 2025 was $17,714. The Association has accounted for uncertainty in income taxes as required by the Accounting for Uncertainty in Income Taxes topic of the FASB ASC. California Police Chiefs Association uses a comprehensive model for recognizing, and measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The effect of applying this model and the resulting identification of uncertain tax positions, if any, were not considered significant for financial reporting purposes. The material jurisdictions subject to potential examination by taxing authorities include the U.S. and California. Management does not believe that the ultimate outcome of any future examinations of open tax years will have a material impact on the Association's results of operations. Tax years that remain subject to examination by the IRS are 2022 through 2025.”