The Brooksie Way

PART X, LINE 2:

“The organization has been classified as a nonprofit organization and is tax-exempt under section 501(c)(3) of the internal revenue code. The organization would be subject to a tax on income from any unrelated business. There was no unrelated business income during 2016. The organization has adopted the recognition requirements for uncertain income tax positions as requred by generally accepted accounting principles. 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 december 31, 2016 the organization may be subject to random audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Tax returns filed for 2013, 2014, and 2015 remain subject to examination by the internal revenue service. The 2016 tax return has not been filed as of the date of the financial statements. The organization's policy is to classify income tax related interest and penalties, if any, in interest expense and penalties expense, respectively. The organization had no income tax related interest expense or penalties for the year ended december 31, 2016.”