Madeleine H and Mandell L Berman

PART X, LINE 2:

“The organizations are michigan nonprofit corporations under section 509(a)(3) of the internal revenue code that have been granted an exemption from the payment of income taxes under section 501(c)(3) and have been determined to be other than private foundations. The organization's management believes that the organizations continue to operate in a manner that preserves its tax exempt status. The organizations apply the standards for accounting for uncertainty in income taxes. The tax effects from an uncertain tax position can be recognized in the financial statements, only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The organizations recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized, upon ultimate settlement with the relevant tax authority. At the adoption date, the organizations applied the new accounting standard to all tax positions for which the statute of limitations remained open. The organizations did not make any adjustment to opening net assets as a result of the implementation of the new accounting standard. Based on its evaluation, the organizations have concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The organization is no longer subject to u.s. Federal income tax examinations by the internal revenue service for the years before 2009.”