Npt Charitable Asset Trust

PART X, LINE 2:

“Income taxes: the organizations are generally exempt from federal income taxes under the provisions of section 501(c)(3) of the internal revenue code. In addition, the organizations qualify for charitable contribution deductions and have been classified as organizations that are not private foundations. Income which is not related to exempt purposes, less applicable deductions, is subject to federal and state corporate income taxes. The organizations had no net unrelated business income for the years ended june 30, 2014 and 2013, respectively. The organizations follow the accounting guidance on accounting for uncertainty in income taxes (financial accounting standards board ("fasb") accounting standards codification ("asc") topic 740-10, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded on the financial statements. Under this guidance, the organizations may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by a tax authority. The tax benefits that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the organizations' tax positions and concluded that the organizations have taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Consequently, no accrual for interest and penalties was deemed necessary for the year ended june 30, 2014 and 2013. The organizations file income tax returns in the u.s. Federal jurisdiction. With few exceptions, the organizations are no longer subject to income tax examinations by the u.s. Federal, state or local tax authorities for fiscal years before june 30, 2010.”