Esponda Associates Inc

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“Esponda is organized as a not-for-profit corporation and has obtained exemption from income taxes under section 501(c)(7) of the united states internal revenue code and similar state laws. The activities of lion holdings are exempt as programs under esponda's not-for-profit exemption. The organization obtained a group exemption ruling and files a combined return for corporations under its management (the group entities) that qualify as subordinate 501(c)(7) corporations. There are 61 (59 at may 31, 2021) corporations filed in the combined group return. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Income earned from non-members is recognized as unrelated business income to the extent such income is not set aside. Income that is properly set aside must be used for the qualifying purposes outlined in the set aside resolution. The organization did not pay any unrelated business income tax in the years ended may 31, 2022 or 2021. Management is required to evaluate tax positions taken by the organization to determine if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by various federal and state taxing authorities. Management has analyzed the tax positions taken by the organization, and has concluded that as of may 31, 2022 and 2021, there are no uncertain positions taken or expected to be taken that would require disclosure in the accompanying combined financial statements. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The organization has filed its federal and state income tax returns for periods through may 31, 2021. These income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”