American Federation of Teachers 2881 Aft

Part X : FIN48 Footnote

“The Association is a nonprofit organization that is exempt from income taxes under Section 501(c)(5) of the Internal Revenue Code and has been determined to be a labor organization and not a private foundation. Management believes that the Association is currently operating in compliance with the applicable requirements of the Internal Revenue Code. Therefore, they believe that the Association was tax exempt as of the financial statement date.Accounting standard requires entities to disclose in their financial statements the nature of any uncertainty in their tax position. For tax-exempt entities, their tax-exempt status itself is deemed to be an uncertainty, since events could potentially occur to jeopardize their tax-exempt status. The Association has implemented this standard and its current accounting policy for evaluating uncertain tax positions is in accordance with generally accepted accounting principles. The Association has not recognized any benefits from uncertain tax positions during the years ended June 30, 2013 and believes it has no uncertain tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the balance sheet date. The Association recognizes interest and penalties related to unrecognized tax benefits in miscellaneous expense. No interest or penalties were recognized during the years ended June 30, 2013. The Association files information returns in the U.S. federal jurisdiction and New York State. The Associations tax returns for years prior to 2009 are no longer subject to U.S. federal and state examinations by tax authorities”