Adpi Properties Inc

PART X, LINE 2:

“The sorority, ihc and adpi properties, inc. Are organized as not-for-profit corporations. The sorority and adpi properties, inc. Have each obtained exemptions from income taxes under section 501(c)(7) of the united states internal revenue code and similar state laws. The ihc has obtained exemption from income taxes under section 501(c)(2) of the united states internal revenue code and similar state laws. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Income earned from non-members is recognized as unrelated business income to the extent such income is not set aside. Income that is properly set aside must be used for the qualifying purposes outlined in the set aside resolution. The sorority, adpi properties, inc. And ihc have not paid unrelated business income tax in the year ended july 31, 2023 and 2022. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the organization and to recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by various federal and state taxing authorities. Management has analyzed the tax positions taken by the organization, and has concluded that as of july 31, 2023 and 2022, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying consolidated financial statements. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The sorority and the ihc have filed their federal and state income tax returns for periods through july 31, 2022. Properties was formed during fiscal 2022 and did not have any activity, and has not yet filed its first-year return. Income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”