Swmf Properties Inc.

“The board of directors has delegated the responsibility of reviewing the tax return to the president.”

“The organization does not pay compensation to officers and has no employees, but is related to an organization that does pay compensation to officers and has employees. The related organization determines compensation upon the review and approval by a compensation committee.”

“The organization evaluates requests for documents and provides the organizational and governing documents on a case by case basis.”

“The organization is in the process of obtaining separate, independent audited financial statements for the tax year. However, as of the tax return's final due date, the audit was not complete. Upon completion of the audit, the organization expects the audited financial statements to include the following footnote that addresses the organization's liability for uncertain tax positions under fin 48 (asc 740): accounting principles generally accepted in the united states of america requires management to evaluate tax positions taken by swmf properties and recognize a tax liability (or asset) if swmf properties has taken an uncertain position that more likely than not would not be sustained upon examination by the internal revenue service. Management has analyzed the tax positions taken by swmf properties and has concluded that as of december 31, 2013, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statement. Swmf properties is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes swmf properties is no longer subject to income tax examination for years prior to 2010.”