Nevada Hand Inc

PART X, LINE 2:

“The organization is exempt from federal income tax under section 501(c)(3) of the internal revenue code. However, income from certain activities not directly related to the organization's tax-exempt purpose is subject to taxation as unrelated business income. In addition, the organization qualifies for the charitable contribution deduction under section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a)(2). For internal revenue service purposes, nevada h.a.n.d., inc. Is the parent company. The affiliates each maintain a separate taxpayer identification number but are joined together by a group exemption number issued by the internal revenue service. Hand fp corporation is not part of the group exemption since it is a for-profit entity. Activities unrelated to the mission of nevada h.a.n.d., inc. And its affiliates could result in unrelated business income tax liability. There was no activity that would result in unrelated business income during the year ended december 31, 2020. Income taxes on partnership income are levied on the partners in their individual capacity. Accordingly, all profits and losses of the operating entities are recognized by each partner on its respective tax return. The preparation of the financial statements in conformity with accounting principles generally accepted in the united states of america requires the organization to report information regarding its exposure to various tax positions taken by the organization. The organization has determined whether any tax positions have met the recognition threshold and have measured the organization's exposure to those positions. Management believes that the organization has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Federal and state tax authorities generally have the right to examine and audit the previous three years of tax returns filed. No interest or penalties from federal or state tax authorities were recorded in the accompanying consolidated financial statements.”