Pipe Line Contractors Association

PART X, LINE 2:

“Fin 48 (asc 740) footnote following is the text from the footnotes of the organization's audited financial statements: the association is exempt from federal income taxes under section 501(c) of the internal revenue code (the "code"), except to the extent it has unrelated business income. In addition, the association has been determined by the internal revenue service not to be a private foundation within the meaning of section 509(a) of the code. For the year ended december 31, 2020, the association had no material net unrelated business income. Accordingly, no provision for federal income tax has been recorded in the accompanying financial statements. Generally accepted accounting principles require the evaluation of tax positions taken or expected to be taken in the course of preparing the association's financial statements to determine whether the tax positions are more likely than not of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the current year. Management evaluated the association's tax positions and concluded that the association had taken no uncertain tax positions that require an adjustment to the financial statements. However, the conclusions regarding accounting for uncertainty in income taxes will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations, and interpretations thereof. Trade associations may support legislation favorable to their industries and oppose detrimental legislation without losing exemption under section 501(c)(6) of the code. 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 $44,103 for the year ended december 31, 2020.”