Shawnee Housing Association

PART X, LINE 2:

“The organization is not subject to federal, state or local income taxes under section 501(c)(3) of the internal revenue code, and therefore, no provision for income taxes is included in the financial statements. In addition, the organization qualifies for the charitable contribution deduction under section 170(6)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a)(2). The organization files federal information returns (irs form 990) as an organization exempt from income taxes. Management has determined that the tax position as an organization exempt from income tax meets the 'more likely than not' (mltn) standard that the organization's tax exempt status would be sustained upon examination by the irs or other taxing authority based on the technical merits of the position and the assumption that the taxing authority has full knowledge of all relevant information. The organization has not filed federal tax returns (irs form 990t) as an organization with unrelated trade or business taxable income. Management has determined that the organization's revenues and expenses are related to its tax exempt purpose. Management has determined that the tax position as an organization with no unrelated trade or business taxable income meets the 'more likely than not' (mltn) standard that the organization's tax position would be sustained upon examination by the irs or other taxing authority based on the technical merits of the position and the assumption that the taxing authority has full knowledge of all relevant information. The organization has not recognized any income taxes in 2013 in the financial statements based upon the organization's filing status as an organization exempt from income tax. If the organization paid any income taxes they would be recorded as an expense of the organization. The organization has not recognized any penalties and interest related to income taxes in the 2013 financial statements. The organization's tax position that it is an organization exempt from income tax will not result in a significant increase or decrease in the total amount of unrecognized tax benefits within 12 months of the reporting date of december 31, 2013. The organization's previously filed information returns for the tax years 2010, 2011 and 2012 remain subject to examination by a taxing authority. The organization's information return for the tax year 2013 has not yet been filed and remains subject to examination by a taxing authority.”