Arid Club Inc

PART X, LINE 2:

“The club is organized as an idaho nonprofit corporation and has been recognized by the internal revenue service (irs) as exempt from income taxes under section 501(a) of the internal revenue code pursuant to section 501(c)(7). The club is annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the club is subject to income tax on net income derived from business activities that are unrelated to its exempt purposes. The entity files an exempt organization business income tax return (form 990-t) with the irs to report its unrelated business taxable income. Income taxes are paid on a portion of investment income and on any excess non-member gross receipts. During the years ended december 31, 2013 and 2012, total taxes paid were $4,798 and $524, repectively, and are included in other administrative expenses. The club believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The club would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. The club's forms 990-t and other income tax filings required by state, local or non-u.s. Tax authorities are no longer subject to tax examinations by tax authorities for years before 2010.”