Minnesota State Horticultural Society

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

“Schedule D, Part X, Footnote for Uncertain Tax Position under FIN 48The Society is exempt from Federal and State income taxes as organizations described under Section 501(c)(3) of the Internal Revenue Code and Section 290.05 of the Minnesota Statutes. The Societys open audit periods are just this year ended June 30, 2019. The Society has 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 Society has analyzed tax positions taken for filing with the Internal Revenue Service and all state jurisdictions where it operates. The Society believes that income tax filing postions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse affect on the Societys financial condition, results of operations or cash flows. Accordingly, the Society has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax position as of this filing. The Society is subject to routine audits by taxing jurisdictions. However, there are currently no audits for any tax periods in progress. The Society believes it is no longer subject to income tax examinations for tax returns prior June 30 2016. The Societys policy is to classify any income tax related interest and penalities in interest expense and other expenses, respectively.”