The Other Way Ministries

PART X, LINE 2:

“The internal revenue service has determined that the other way ministries qualifies as a tax-exempt organization under section 501(c)(3) of the internal revenue code. Accordingly, no provision for income taxes is recorded. Asc topic 740, accounting for uncertainty in income taxes, seeks to reduce the significant diversity in practice associated with financial statement recognition and measurement in accounting for income taxes and prescribes the recognition threshold and measurement attribute for disclosures of tax positions previously taken or expected to be taken on an income tax return. Not-for-profit entities are also within the scope of asc topic 740. An entity must consider whether it has engaged in activities that jeopardize its current tax exempt status with the internal revenue service. Furthermore, the entity must determine whether it has any unrelated business income, which may be subject to federal or state income taxes. The other way ministries analyzed its filing positions in the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The organization has also elected to retain its existing accounting policy with respect to the treatment of interest and penalties attributable to income taxes, and continues to reflect any charges for such, to the extent they arise, as a component of its administrative services expenses. The adoption of asc topic 740 has no significant impact on the organization's financial statements. The other way ministries has evaluated the provisions of asc topic 740. The evaluation was performed for the tax years 2013 through 2015, the years which remain subject to examination by major tax jurisdiction. The organization concluded that there are no significant uncertain tax positions requiring recognition in the organization's financial statements. The organization does not expect the total amount of unrecognized tax benefits ("utb") (e.g. Tax deductions, exclusions, or credits claimed or expected to be claimed) to significantly increase or decrease in the next twelve months. The organization does not have any amounts accrued for interest and penalties related to utbs at june 30, 2016, and it is not aware of any claims for such amounts by federal or state income tax authorities.”