Supportive Living Incorporated

“The Organization collects security deposits from renters to be returned at the end of the tenants lease subject to certain restrictions, such as property damage exceeding security deposit or termination of lease in violation of lease agreement.”

“The Organization accounts for uncertain tax positions in accordance with the provision of FASB Codification Topic 740, Income Taxes. topic 740 clarifies the accounting and recognition for income tax positions taken or expected to be taken in the Organizations income tax returns. Under Topic 740, the Organization is required to report information regarding its exposure to various tax positions taken by the Organization. As of June 30, 2016 and 2015, management believes the Organizations tax status to be that of a not-for-profit entity and therefore, has made the decision to classify the Organization as tax exempt. Management has reviewed all sources of revenue and does not believe the Organization to be subject to income tax on unrelated business income. The Organization did not record any interest or penalties in the statement of operation or statement of financial position as of and during the years ended June 30, 2016 and 2015. Tax returns filed for the years ended June 30, 2013 through 2015 remain subject to examination by the Internal Revenue Service.”

“The Organization received a notice from the IRS because their fiscal year ended June 30, 2012 Form 990 tax return was filed late. The IRS assessed a 1,780 penalty for the late filing which is included in the statement of operations and statement of financial position as of and during the year ended June 30, 2016. The penalty was abated in March 2017 and is no longer due.”