Rapides Station Community Ministries

Schedule D, Page 3, Part X

“Rapides station operates as a public charity under section 501(c)(3) of the internal revenue code and, accordingly, is exempt from federal and state income taxes. However, rapides station is subject to income tax on any unrelated business taxable income. Since rapides station had no unrelated business income for the year ended december 31, 2013, no provision for income taxes is included in the accompanying financial statements. Rapides station files form 990, return of organization exempt from income tax, in the u.s. Federal jurisdiction and the state of louisiana. The deadline to file form 990 for the tax year ended december 31, 2013 has been extended until august 15, 2014. Rapides station has not filed their 2013 form 990 as of the date these financial statements were available to be issued. Should the entity's tax status be challenged in the future, the 2010, 2011, and 2012 tax years are open to tax examination by the irs. In july 2006, the financial accounting standards board (fasb) issued accounting for uncertainty in income taxes, which clarifies the accounting and disclosure for uncertain tax positions. This interpretation requires companies to use a prescribed model for assessing the financial statement recognition and measurement of all tax positions taken or expected to be taken in tax returns. Rapides station applies a "more-likely-than-not" recognition threshold for all tax uncertainties. This approach only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. Management has evaluated rapides station's tax positions and concluded that the organization had taken no uncertain tax positions that require recognition or disclosure in the financial statements.”