South Arkansas Fights AIDS

PART X, LINE 2:

“Accounting standards codification (asc) topic 740, income taxes, requires an entity to recognize a liability for taxes to the extent of any unrelated business income as defined by irs regulations. The organization is liable for taxes to the extent of any unrelated business income as defined by irs regulations. The organization believes that is has not engaged in any unrelated business income activities as defined by irs regulations and that it is more likely than not that this position would be sustained upon examination. As such, there were no liabilities recorded for uncertain tax positions as of december 31, 2013. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in process. The organization administrator believes the organization is no longer subject to income tax examinations prior to december 31, 2009. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties, the company recognizes an expense for the amount of statutory penalty in the period in which it claims or expects to claim the position in the return. Any penalties accrued are recognized as other expenses. When the tax law requires interest to be paid on an underpayment of income taxes, the company begins recognizing interest expense in the first period the interest would begin accruing according to the provisions of the relevant tax law. Any interest accrued is recognized as interest expense. For the year ended december 31, 2013, no penalties and interest are recognized in the financial statements.”