My Possibilities

PART X, LINE 2:

“My possibilities, mp foundation and mp residential are exempt from federal income taxes under section 501(c)(3) of the code, and therefore, no provision or liability has been made for federal income taxes in the accompanying consolidated financial statements. In addition, these organizations have been classified as entities that are not private foundations within the meaning of section 509(a) of the code and are also exempt from state income taxes. Should the organization engage in activities unrelated to the purpose for which it was created, taxable income could result. For federal income tax purposes, mpact is taxed as a corporation. For federal income tax purposes, soap hope is taxed as a partnership and the members are taxed on their proportionate share of soap hope's taxable income, and therefore, no provision or liability has been made for federal income taxes in the accompanying consolidated financial statements. Mpact and soap hope are subject to franchise tax in the state of texas. Gaap requires the evaluation of tax positions taken or expected to be taken in the course of preparing the organization's tax returns to determine whether the tax positions are more likely than not of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the current year. Reconciliation is not provided herein, as the beginning and ending amounts of unrecognized benefits are zero, with no interim additions, reductions, or settlements. The organization is relying on its tax-exempt status and its adherence to all applicable laws and regulations to preserve that status. However, the conclusions regarding the uncertainty in income taxes will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations and interpretations thereof. Management has evaluated the organization's federal and state tax positions and believes there are no significant uncertain tax positions as of december 31, 2021 and 2020.”