Unlimited Learning Inc

Part X : FIN48 Footnote

“The Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and therefore has not recorded any provision for federal income taxes in the accompanying financial statements. In addition, the Organization has been determined by the Internal Revenue Service (IRS) not to be a private foundation within the meaning of Section 509(a) of the Internal Revenue Code. The Organization did not have any unrelated business income for the year ended June 30, 2020.The Organizations Form 990, Return of Organization Exempt from Income Tax, for the years ending June 30, 2019, 2018, and 2017 are subject to examination by the IRS, generally for three years after they were filed. Generally accepted accounting principles require tax effects from an uncertain tax position to be recognized in the financial statements only if the position is more likely than not to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the more-likely-than not threshold, the largest amount of tax benefit that is greater than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded.The Organizations primary tax positions relate to its status as a not-for-profit entity exempt from income taxes and classifications of activities related to its exempt purpose. Management has evaluated the tax positions reflected in the Organizations tax filings and does not believe that any material uncertain tax positions exist.”