West Virginia Hospital Association

PART X, LINE 2:

“The association and hef, which are not considered private foundations, are recognized as exempt from federal and state income taxes under sections 501(c)(6) and 501(c)(3), respectively, of the internal revenue code (irc) and similar state statutes relating to not-for-profit organizations. Wvhs' income is subject to corporate income taxes at the applicable federal and state rates. Deferred income taxes reflect the impact of "temporary differences" between amounts of assets and liabilities for financial reporting purposes and such amounts as measured for tax purposes. Deferred tax assets and liabilities present the future tax return consequences of temporary differences, which will be either taxable or deductible when the related assets and liabilities are recovered or settled. Valuation allowances are established when deemed necessary to reduce deferred tax assets to the amount expected to be realized. The financial accounting standards board (fasb) accounting standards codification (asc) topic, accounting for uncertainty in income taxes, addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under this guidance, the organization 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 taxing authorities, based on the technical merits of the position. Any tax "benefits" recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no such tax benefits claimed for the years ended december 31, 2024 and 2023. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no tax audits in process. Changes in tax estimates as a result of such audits are recognized in the period they become known.”