Wallowa Resources Inc

PART X, LINE 2:

“Wallowa resources, inc. Is organized as an oregon nonprofit corporation and has been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as organizations described in section 501(c)(3), and qualifies for the charitable contribution deduction under sections 170(b)(1)(a)(vi), and has been determined not to be private foundations under section 509(a)(1). Wallowa resources, inc. Is annually required to file a return of organization exempt from income tax (form 990) with the irs. Wallowa resources stewardship center, llc is a domestic single member limited liability nonprofit company and considered a disregarded nonprofit entity for income tax purposes. Its net income or loss is combined with wallowa resources, inc. For income tax reporting purposes and is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose. The organization files an exempt organization business income tax return (form 990-t) with the irs to report its unrelated business taxable income. Wallowa resources community solutions, inc. Is a c-corporation subject to income tax derived on net income from its business activities and consists of taxes currently due plus deferred taxes related to differences between financial and income tax reporting. As of december 31, 2020, the subsidiary had an unused net operating loss carry forward of approximately $2,000,000 which can be used to offset future taxable income. This loss carry forward will expire at various dates between 2029 and 2038. Due to the uncertain nature of future income, the organization has elected to provide a valuation allowance equal to the unused carryforward, thereby eliminating any deferred tax assets. Additionally, there were no deferred tax liabilities or taxes currently due as of and for the years ended december 31, 2020 and 2019. Management believes that the organization has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The organization would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred.”