Rocky Mountain Insurance Information Association

Part X : FIN48 Footnote

“Part X, Line 2: The organization is a non-profit organization that is exempt from federal income taxes under section 501(c)(6) of the Internal Revenue Code (IRC) and state income taxes under regulations in the State of Colorado. Therefore, the organization is not subject to federal or state income taxes in connection with its exempt activities. In addition, the organization is treated as an entity that is not a private foudnation within the meaning of Section 509(A) and qualifies for deductible contributions as provided in Section 170(B)(1)(A)(VI). During 2016, the organization made a payment totaling $705 for the liability on their 2015 990-T. For the current year ended, the organization made an estimated payment of their potential tax liability to the Internal Revenue Service with their extension totaling $293. As of the current year ended, the organization's federal tax returns for the prior three years ended are subject to examination by taxing authorities.The standards on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under that guidance, the organization may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the organization and various positions related to the potential sources of unrelated business taxable income (UBTI). The tax benefits recognized int he financials statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. There were no unrecognized tax benefits identified or recorded as liabilities for the current year ended.”