Prime Community Housing and Development

PART X, LINE 2:

“The organization applied for and received a determination letter from the internal revenue service (irs) to be treated as a tax exempt entity pursuant to section 501(c)(3) of the internal revenue code. Due to its tax exempt status, the organization is not subject to income taxes. The other entities have filed elections with the internal revenue service to not be treated as a tax-exempt entity, and to file income tax returns as a corporation. The organization is required to and does file tax returns with the irs and other taxing authorities. Accordingly, these consolidated financial statements do not reflect a provision for income taxes and the organization has no other tax positions which must be considered for disclosure. Generally, income tax returns filed by the organization are subject to examination for a period of three years. While no income tax returns are currently being examined by the irs, tax years since 2020 remain open. The organization has adopted the provisions of accounting for uncertainty in income taxes. These provisions clarify the accounting and recognition for income tax positions taken or expected to be taken in the organization's income tax returns. The organization's income tax filings are subject to audit by various taxing authorities. The organization's policy with regard to interest and penalties is to recognize interest expense and penalties through expense. In evaluating the organization's tax provisions and accruals, future taxable income, and the reversal of temporary differences, interpretations and tax planning strategies are considered. The organization believes its estimates are appropriate based on current facts and circumstances. As of december 31, 2023 and 2022, the organization has identified no uncertain income tax positions.”