The Oceanography Society

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“TOS is a nonprofit entity and is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Therefore, contributions to TOS are tax deductible under Section 170 of the Internal Revenue Code. TOS files an IRS Form 990-T to report all unrelated business income annually. TOS's unrelated business income arises from the sale of advertising in the Society's magazine. No liability related to unrelated business income tax is recorded in these financial statements as Management believes no such material liability exists. TOS is not classified as a private foundation by the Internal Revenue Service. TOS adopted the recommendations of the Financial Accounting Standards Board (FASB)in its Accounting Standards Codification (ASC) for Accounting of Uncertainty in Income Taxes without any material effect to the financial statements. These recommendations clarify the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. They also provide guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. 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. TOS has analyzed tax positions taken for filing with the Internal Revenue Service and all state jurisdictions where it operates. Management 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 TOS's financial condition, results of operations or cash flows. Accordingly, TOS has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at September 30, 2019.”