Pipe Line Contractors Association

PART X, LINE 2:

“The plca is exempt from federal income taxes under section 501(c)(6) of the internal revenue code (irc), except to the extent it has unrelated business income. Trade associations may support legislation favorable to their industries and oppose detrimental legislation without losing exemption under section 501(c)(6) of the irc. A 501(c)(6) organization may permissibly engage in any amount of legislative activity germane to the common business interest of the organization's members. The association has elected to pay a proxy tax at the highest federal corporate rate (21%) in lieu of telling members that dues are non-deductible. The proxy tax is imposed on lobbying expenses for the year, up to the dues received. The proxy tax is considered an income tax, and must be reported on form 990-t. The proxy tax was $34,997 for the year ended december 31, 2024. The association adheres to the authoritative guidance relating to accounting for uncertainty in income taxes included in asc topic income taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity's consolidated financial statements and prescribe a threshold of "more likely than not" for recognition and derecognition of tax positions taken or expected to be taken in a tax return. The organization performed an evaluation of uncertain tax positions for the year ended december 31, 2024 and determined that there were no matters that would require recognition in the consolidated financial statements or that may have an effect on its tax-exempt status. As of december 31, 2024, the statute of limitations for tax years 2021 through 2023 remains open with the u.s. Federal jurisdiction and the various states and local jurisdictions in which the association files returns. It is the association's policy to recognize interest and/or penalties related to uncertain tax positions, if any, in unrelated business income tax expense.”