Barney & Barney Foundation

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“Fin 48 (asc 740) footnote text from organization's compiled financial statements: the foundation is exempt from income taxes under both federal (internal revenue code section 501(c)(3)) and california income tax laws, and is classified as other than a private foundation. Income from certain activities not directly related to the foundation's tax-exempt purpose, however, may be subject to taxation as unrelated business income. The foundation incurred unrelated business income tax (benefit) of $0 and $(7,489) in 2016 and 2015 on partnership income from its previous investment in barney & barney, llc. Gaap requires management to perform an evaluation of all tax positions taken or expected to be taken in the course of preparing the foundation's tax returns to determine whether the tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. The foundation is only subject to income taxes on unrelated business taxable income (ubti). As a result, the foundation is required to file informational returns for federal and state purposes and, if it has ubti, federal and state income tax returns. Management has performed its evaluation of tax positions taken on all open tax returns and has determined that there were no positions taken that do not meet the "more likely than not" standard. From time to time, the foundation may be subject to penalties and interest assessed by various taxing authorities, which will be classified as management and general expenses if they occur.”