Community Mental Health Services Inc

PART X, LINE 2:

“The organization is exempt from federal income taxes under section 501(c)(3) of the internal revenue code. However, income from certain activities not directly related to the organization's tax exempt purpose is subject to taxation on unrelated business income. In addition, the organization qualifies for the charitable contribution deduction under section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a)(2). The organization is also exempt from wisconsin income taxes. Accounting standards codification (asc) 740-10 on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under that guidance, the organization may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the organization and various positions related to the potential sources of unrelated business taxable income (ubti). The organization believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements. Penalties and interest assessed by income taxing authorities are included in management and general expenses, if applicable. The organization had no interest and penalties related to income taxes for the year ended december 31, 2013. The organization's federal returns are subject to examination generally for three years after they are filed and its state returns are subject to examination generally for four years after they are filed.”