Woodward Community Foundation

Part X : FIN48 Footnote

“The Foundation is a not-for-profit corporation that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. As such, no provision has been made for Federal or state income taxes. The Organization is required to file an information return, IRS Form 990. In June 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation 48 (FIN 48) Accounting for Uncertainty in Income Taxes (Currently FASB Accounting Standards Codification (ASC) 740, Income Taxes), which requires extensive disclosures about uncertain income tax positions. This standard seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to income taxes. The Organization evaluates any uncertain tax positions using the provision of ASC 450, Contingencies. Accordingly, a loss contingency is recognized when it is probable that a liability has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately sustained for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized. The Organization does not believe that it engaged in any activity that would result in an uncertain tax position. As a result, management does not believe that any uncertain tax positions currently exist, and no loss contingency has been recognized in the accompanying financial statements. The Organizations policy is to record any income tax related penalties and interest incurred as operating expense. There were no income tax related penalties or interest included in the accompanying financial statements. Federal and state income tax statutes dictate that tax returns filed in any of the three previous reporting periods remain open to examination. Currently, the Organization has no open examination with either the Internal Revenue Service or state taxing authorities.”