Asian Health Services Foundation

Schedule D, Part X, Line 2

“AHS, AHS 835 and AHSF have been recognized by the Internal Revenue Service as non-profit corporations as described in Sec. 501(c)(3) of the Internal Revenue Code (IRC) and are exempt from federal and state income taxes on related income pursuant to Sec. 501(a) of the IRC and California Revenue and Taxation Code Sec. 23701(d). AHS utilizes a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. As of, and for the year ended June 30, 2024, there were no liabilities recorded for unrecognized tax benefits related to tax positions taken in the current year or past years and no accruals for interest and penalties related to uncertain tax positions. AHS considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments, and which may not accurately forecast actual outcomes. AHS, AHS 835 and AHSF each file a United States federal tax return and a California state tax return. AHS has determined that its major tax jurisdictions are the United States and California. AHS's returns are subject to examination by federal and state taxing authorities generally for three years after they are filed. Management has determined there were no uncertain tax positions requiring recognition or disclosure in the consolidated financial statements for the years ended June 30, 2024 or 2023.”