West Florida Electric Cooperative

“The cooperative is exempt from income taxes under section 501(c)(12) of the internal revenue code on any income related to its exempt purpose. The cooperative incurs unrelated business taxable income (ubti) under the code on certain revenue streams. There are no provisions for income taxes for 2024 or 2023. The cooperative has a net operating loss carryforward of $409,931 to offset future taxable income as of december 31, 2024. The cooperative utilizes the accounting guidance for uncertainty in income taxes using the provision of fasb asc 740, income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the taxing authorities. Such tax positions initially and subsequently need to be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority assuming full knowledge of the position and relevant facts. The cooperative believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities, if any, are adequate for all open tax years (after 2021 for federal and state) based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. The cooperative evaluated its income tax positions on an annual basis. Management has determined there are no uncertain tax positions at december 31, 2024 and 2023 that meet the criteria for recognition in the financial statements. The cooperative would recognize future accrued interest and penalties related to unrecognized tax positions in income tax expense if incurred. Generally, the cooperative is no longer subject to federal tax examinations by tax authorities for tax periods before 2021.”

“Non utility operations expenses reported on form 990, part xi, line 9 201,393.”