Hhc Devon Real Estate Nfp

Part X, Line 2:

“HHC Devon Real Estate NFP is a tax-exempt organization under Internal Revenue Code Section 501(c)(3) and as required files a Form 990 (Return of Organization Exempt from Income Tax) annually. Accordingly, no income taxes are reflected in the accompanying consolidated financial statements. HHC Devon Real Estate NFP files a Form 990 (Return of Organization Exempt from Income Tax) annually. When this return is 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 position taken or the amount of the position that would ultimately be sustained. The benefit of a tax position is recognized in the consolidated 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. Forms 990 filed by HHC Devon Real Estate NFP is subject to examination by the Internal Revenue Service (IRS) up to three years from the extended due date of each return. Forms 990 filed by HHC Devon Real Estate NFP are no longer subject to examination for fiscal year 2016 and prior. The accounting guidance on income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded and disclosed in the financial statements. HHC Devon Real Estate NFP 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 the taxing authorities, based on the technical merits of the position. Management has determined that the HHC Devon Real Estate NFP has no material uncertain tax positions that would require disclosure or adjustment.”