Kenttucky Laborers-Employers

Part X : FIN48 Footnote

“Accounting for uncertain tax positions fasb asc 740 fin 48 income tax returns include those that were filed or that should have been filed with federal taxing authorities. It is the board of trustees policy to assess all material positions taken on any federal income tax return. The board will require its legal and tax counsel to communicate to them all such uncertain tax positions in order to evaluate the impact of the tax position and the reporting and disclosure required. This requirement will apply to not only the current reporting year but also to all prior open reporting years that could still be subject to examination by a taxing authority. The board of trustees has determined that any material uncertain tax positions that are presented to the board will be recognized and measured using a more-likely-than-not, mltn threshold. The mltn threshold means that 1. A benefit related to an uncertain tax position may not be recognized in the financial statements unless it is mltn that the position will be sustained based on its technical merits, and 2. There must be more than a 50 likelihood that the position would be sustained if challenged and considered by the highest court in the relevant jurisdiction. Measurement of any uncertain tax position will require calculating the cumulative probability of an outcome either for or against the tax position. The tax benefit of a qualifying position is the largest amount of tax benefit that is more than 50 likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Initial recognition of an uncertain tax position will require continued reassessment of the tax position on an annual basis. As of each year-end, any unresolved uncertain tax positions must be reassessed, and the board of trustees must determine whether 1. The factors underlying the sustainability assertions have changed and 2. The amount of the recognized tax benefit is still appropriate. Developments such as case law, changes in tax law, new rulings or regulations issued by taxing authorities, could affect whether a tax position should be recognized or the amount that should be reported. The association will be required to accrue interest and penalties that, under present tax law, the fund would incur if the uncertain tax position ultimately were not sustained. For the year ending december 31, 2025, there are no identified material uncertain tax positions for the open years of 2020-2025 with the filing of any u.s. Federal income tax return. Tax returns have been filed for the years 2020-2024 and the statute of limitations, pursuant to irc section 6501, will expire for the year 2019 upon the filing of the 2024 tax return.”