Peoria Area Community Foundation

Footnote for uncertain tax position under FIN 48 (Part X)

“The foundation and depository are exempt from federal income taxes under internal revenue code sections 501(c)(3) and 509(a), respectively. The depository has been determined by the internal revenue service to be classified as a private foundation, thus is subject to a 2% excise taxes on its net investment income.on july 1, 2009, the organization adopted the accounting standard on accounting for uncertainty in income taxes. The organization files a form 990 (return of organization exempt from income tax) annually. When the returns are filed, it is highly certain that some positions taken would be sustained upon examination by taxing authorities, while others are subject to uncertainty about the merits of the tax position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to nonprofit organizations include such matters as the following: the tax exempt status of each entity and various positions relative to potential sources of unrelated business taxable income (ubit). Ubit is reported on form990-t, as appropriate. The benefit of tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation process, if any.tax positions are offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for uncertain tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Upon the adoption and as of june 30, 2017, there were no unrecognized tax benefits identified and recorded as a liability.forms 990 filed by the organization are subject to examination by the internal revenue service (irs) up to three years from the extended due date of each return forms 990 filed by the organization are no longer subject to examination for the years 2013 and earlier”