Fort Madison Professional Building Assoc

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“The fort madison community hospital (hospital) and affiliates (fort madison professional building association, fort madison community hospital foundation, and renaissance health services, inc.), except for renaissance health services, inc., are not-for-profit corporations as described in section 501(c)(3) of the internal revenue code and are exempt from federal income taxes on related income pursuant to section 501(a) of the code. Renaissance health services, inc. Is a for profit corporation subject to federal and state income taxes, however there were no material income tax provisions for the years ended september 30, 2017 and 2016. The hospital, fort madison community hospital foundation (foundation) and fort madison professional building association file a form 990 (return of organization exempt from income tax) annually. When these returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the tax position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to organizations such as this include such matters as the following: the tax exempt status of the entity, the continued tax exempt status of bonds issued by the hospital, the nature, the characterization and taxability of joint venture income and various positions relative to potential sources of unrelated business income (ubi). Ubi is reported on form 990t, as appropriate. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions are not offset or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. However, as of september 30, 2017 and 2016, there were no unrecognized tax benefits identified and recorded as a liability as management does not believe the organization has taken any tax positions that would not be sustained upon examination by the taxing authorities. Forms 990 and 990t filed by the hospital, foundation and fort madison professional building association are generally subject to examination by the internal revenue service (irs) up to three years from the extended due date of each return. The hospital's irs forms 990 and 990t are no longer subject to examination for the years ended september 30, 2013 and prior. Renaissance health services, inc. Is a taxable organization and currently files income tax returns in the u.s. Federal jurisdiction and the applicable state jurisdictions. This entity is no longer subject to income tax examinations for years ended september 30, 2013 and prior.”