Norwich Housing Corporation Inc

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“The nhc is organized as a nonprofit corporation and is exempt from income taxes under section 501(c)(7) of the united states internal revenue code and similar state law. 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. At june 30, 2024 and 2023, cash includes $264,460 and $215,369, respectively, designated for set aside. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the nhc and recognize a tax liability if the nhc 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 nhc, and has concluded that as of june 30, 2024 and 2023, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying financial statements. As such, the nhc is generally exempt from income taxes. However, the nhc is required to file federal form 990 return of organization exempt from income tax and a corresponding state return, which are informational returns only. The nhc has filed its federal and state income tax returns for periods through june 30, 2023. 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). There are currently no audits for any tax periods in progress.”