Hospitality House

PART X, LINE 2:

“The organization has been classified as a not-for-profit organization and is tax-exempt under section 501(c)(3) of the internal revenue code. The organization is subject to a tax on income from any unrelated business. On september 1, 2009, the organization adopted the recognition requirements for uncertain income tax positions as required by generally accepted accounting principles, with no cumulative effect adjustment required. Income tax benefits are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. The organization has analyzed tax positions taken for filing with the internal revenue service and all state jurisdictions where it operates. The organization believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the organization's financial condition, results of operations or cash flows. Accordingly, the organization has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at august 31, 2014. The organization may be subject to random audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The organization believes it is no longer subject to income tax examinations for years ending before august 31, 2011. The organization's policy is to classify income tax related interest and penalties, if any, in interest expense and penalties expenses, respectively. The organization had no income tax related interest expense or penalties for the year ended august 31, 2014.”