New Mexico Broadcasters Association

Schedule D, Page 3, Part X

“The association is exempt from income tax under section 501(c)(6) of the u. S. Internal revenue code (irc). In addition, the association qualifies for charitable contribution deductions under irc section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under irc section 509(a)(2). The association is also exempt from new mexico state income tax under 1978 new mexico statutes chapter 7, section 2-4(b). The association has adopted accounting principles generally accepted in the united states of america as they relate to uncertain tax positions for the year ended december 31, 2016 and has evaluated its tax positions taken for all open tax years. Currently, the 2013, 2014 and 2015 tax years are open and subject to examination by the internal revenue service and new mexico taxation and revenue department. However, the association is not currently under audit nor has the association been contacted by any of these jurisdictions. Management believes that the activities of the association is within its tax-exempt purpose, and that there are no uncertain tax positions. The foundation is a not-for-profit organization exempt from income taxes under section 50 l (c)(3) of the internal revenue code. The foundation is required to pay unrelated business income tax on interest income and net income from services provided to non-members. Income tax on unrelated business income was zero in 2016 and 2015. The foundation has adopted accounting principles generally accepted in the united states of america as they relate to uncertain tax positions. Any interest and penalties recognized associated with a tax position are classified as current in the combined financial statements. Currently, the 2013, 2014, and 2015 tax years are open and subject to examination by the internal revenue service and new mexico taxation and revenue department. However, the foundation is not currently under audit nor has the foundation been contacted by any of these jurisdictions. Management believes that the activities of the foundation, with the exception of those noted above, are within their tax-exempt purpose, and that there are no uncertain tax positions. There were no interest or penalties recorded as of december 31, 2016 and 2015.”