Santiam Hospital and Clinics Foundation

PART X, LINE 2:

“Income taxes - santiam memorial hospital is a tax-exempt organization pursuant to internal revenue code (irc) section 501(c)(3). As such, only unrelated business income is subject to federal or state income taxes. The medical group is a single-member limited liability company and is being treated as a "disregarded entity" for irc reporting purposes. As a "disregarded entity," it is treated as a division of santiam memorial hospital. It is management's belief that none of the hospital's activities have generated material unrelated business income; therefore, no provision for income taxes has been made in the accompanying consolidated financial statements. Income tax positions that meet a "more-likely-than-not" recognition threshold are measured at the largest amount of income tax benefit that is more than 50% likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized income tax benefits in the hospital's consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized income tax benefits would be classified as income taxes in the hospital's consolidated statements of operations. There were no unrecognized income tax benefits, nor any interest and penalties associated with unrecognized income tax benefits, accrued or expensed as of and for the years ended december 31, 2024 and 2023. The hospital files a federal information return in the u.s. And a state information return in oregon.”