Salt and Light Nfp

PART X, LINE 2:

“The organization did not file timely form 990 informational tax returns for fiscal years 2017 through 2021, and as of august 18, 2023, the date of the independent auditor's report, the filing for 2022 has been extended to november 15, 2023 for federal and august 31, 2023 for illinois. Accordingly, effective may 15, 2020, the internal revenue service revoked the organization's tax-exempt status for failure to file three consecutive years of form 990 informational tax returns (fiscal years 2017 through 2019). Although the organization's tax-exempt status was reinstated effective march 9, 2021, this could result in taxability of activities that were previously considered tax-exempt, and accordingly could result in tax liabilities for the organization. Additionally, the organization has received various notices from both federal and state agencies, including the following notices from the internal revenue service: notice dated august 15, 2022 currently imposing a penalty of $53,000 for the late filing of the 2019 form 990 informational tax return, notice dated march 27, 2023 currently imposing a penalty of $49,455 for the late filing of the 2020 form 990 informational tax return, and a notice dated may 1, 2023 currently imposing a penalty of $34,230 for the late filing of the 2021 form 990 informational tax return. Management does not believe the organization will ultimately be liable for these penalties; however, as of august 18, 2023, the date of the independent auditor's report, the organization responded to the notices, but has not received notification of resolution from the internal revenue service abating the penalties discussed above. The delinquent filings and corresponding potential tax liabilities creates an overall uncertain tax position for the organization; however, an amount of the final settled liability, if any, is not reasonably estimable given the broad nature and uncertainty of the matter. Given this, given the organization was in good standing as of the date of these financial statements, and given the irs's administrative history of abating similar penalties for nonprofits in nonfraud situations, no accrual for potential liabilities has been included in these financial statements.”