Camp Bowie District Inc

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“INCOME TAXES - THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(a) OF THE INTERNAL REVENUE CODE AS AN ORGANIZATION DESCRIBED IN SECTION 501(c)(6), AND AS SUCH IS SUBJECT TO INCOME TAXES ONLY ON UNRELATED BUSINESS INCOME (UBI). THE ORGANIZATION DID NOT HAVE ANY UBI FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020. FASB ISSUED ASC 740-10, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH CLARIFIES THE ACCOUNTING FOR INCOME TAXES, BY PRESCRIBING A MINIMUM RECOGNITION THRESHOLD A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. IT ALSO PROVIDES GUIDANCE ON DERECOGNITION, MEASUREMENT AND CLASSIFICATION OF AMOUNTS RELATING TO UNCERTAIN TAX POSITIONS, ACCOUNTING FOR AND DISCLOSURE OF INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURES AND TRANSITION RELATING TO THE ADOPTION OF THE NEW ACCOUNTING STANDARD. DURING 2016 THE ORGANIZATION FILED THE SEPTEMBER 30, 2015 AND 2014 TAX RETURNS AFTER THE REQUIRED DUE DATES. DURING 2017 THE ORGANIZATION ALSO FILED THE SEPTEMBER 30, 2016 TAX RETURN AFTER THE REQUIRED DUE DATE. THE ORGANIZATIONS TAX FILINGS FOR TAX YEARS 2015 TO 2018 REMAIN OPEN FOR EXAMINATION BY TAXING AUTHORITIES. THE ORGANIZATION DOES NOT ANTICIPATE SIGNIFICANT CHANGES IN ITS UNCERTAIN TAX POSITIONS DURING THE NEXT TWELVE MONTHS. THE ORGANIZATION'S ACCOUNTING POLICY RELATED TO INCOME TAX PENALTIES AND INTEREST ASSESSMENTS IS TO ACCRUE FOR THESE COSTS AND RECORD A CHARGE TO SELLING, GENERAL AND ADMINISTRATIVE EXPENSE FOR TAX PENALTIES AND A CHARGE TO INTEREST EXPENSE FOR INTEREST ASSESSMENTS DURING THE PERIOD THAT IT TAKES AN UNCERTAIN TAX POSITION THROUGH RESOLUTION WITH THE TAXING AUTHORITIES OR THE EXPIRATION OF THE APPLICABLE STATUTE OF LIMITATIONS. AS OF SEPTEMBER 30, 2018 AND 2017, THE ORGANIZATION HAD ACCRUED PENALTIES TOTALING $8,800 AND $12,825, RESPECTIVELY, ASSOCIATED WITH LATE TAX FILINGS OF ITS TAX RETURNS. MANAGEMENT HAS REQUESTED AN ABATEMENT OF THE PENALTIES FROM THE INTERNAL REVENUE SERVICE. DURING THE YEAR ENDED SEPTEMBER 30, 2018 THE ORGANIZATION RECEIVED AND ABATEMENT OF THE PENALTY FOR THE LATE FILING OF THE SEPTEMBER 30,2015 TAX RETURN. IN CONJUNCTION WITH THE ABATEMENT, THE ORGANIZATION REMOVED THE ACCRUAL FOR THE PENALTY AND RECORDED $3,420 IN OTHER INCOME.”