Notara Dance Theatre Inc

PART X, LINE 2:

“The organization is exempt from federal and state income taxes under the provisions of section 501(c)(3) of the internal revenue code. Accordingly, no provision for federal and state income taxes has been reflected in the accompanying financial statements. The organization 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 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 affect 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 november 30, 2014 and 2013. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The organization believes it is no longer subject to income tax examinations for years prior to 2011. The organization's policy is to classify income tax related interest and penalties in interest expense and other expenses, respectively.”