National Sheriffs' Association

PART X, LINE 2:

“Nsa and the foundation are nonprofit organizations which are exempt from federal income taxes under section 501(c)(4) and 501(c)(3) of the internal revenue code, respectively. Nsa inc. Is subject to both federal and state corporate income taxes. The association recognizes the effects of income tax positions only if those positions are more likely than not of being sustained. Changes in recognition or measurement are reflected in the period in which the change occurs. The association performed an evaluation of uncertain tax positions for the years ended september 30, 2021 and 2020, and determined there were no matters than would require recognition in the financial statements. The tax records of the association generally remain open for three years for examination. Nsa inc. Is subject to both federal and state corporate income taxes. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits of which future realization fails the "more likely than not" test. In relation to the net loss incurred by nsa, inc. For the years ended september 30, 2021 and 2020, these financial statements include a deferred tax asset of $14,000 and $37,900 presented with other assets at september 30, 2021 and 2020, respectively. Nsa, inc. Has federal and state net operating loss carryforwards of approximately $66,000.”