Globalsf

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“Globalsf is a nonprofit organization as described in section 501(c) (3) of the internal revenue code and section 23701(d) of the california tax code and has obtained determination letters from the internal revenue service and the california franchise tax board to that effect. Accordingly, the primary operations of the organization are currently considered exempt from federal income and state franchise taxes. Globalsf applies the fasb guidance on accounting for uncertainty in income taxes under asc 740. Under asc 740, globalsf utilizes a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. For the year ended june 30, 2020, there were no additional liabilities recorded related to tax positions taken in the current year, on unrecognized tax benefits. Globalsf considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. In accordance with asc 740, globalsf has elected to include interest and penalties related to its tax contingencies in income tax expense. There were no accruals for interest and penalties related to uncertain tax positions for the years ended june 30, 2020. Globalsf files federal and state annual information returns. Globalsf has determined that its major tax jurisdictions are the united states and california. This is first tax year, subject to examination by the appropriate governmental agency in california.”