Pacific Inland Transportation Bureau

PART X, LINE 2:

“Income taxes: pitb is a nonprofit organization and operational revenue is generally exempt from federal and state income taxes under section 501(c)(6) of the internal revenue code. Pitb services inc. And its wholly owned subsidiary, willamette traffic bureau, llc, are taxable corporations and, therefore, a provision for income taxes is generally provided on the consolidated statements of activities. The provision for income taxes represents income taxes payable for the period and deferred income taxes provided on temporary differences, if any. Deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Management has evaluated whether pitb and pitb services, inc. Have a liability for unrecognized tax expense resulting from the for-profit nature of pitb services, inc. With few exceptions, pitb and pitb services, inc. Are no longer subject to income tax examinations by the u.s. Federal authorities for the years before 2014. For the years ended december 31, 2017 and 2016, the effective tax rate approximated the federal statutory rate of 25 percent and 34 percent, respectively. Pitb services, inc. Files income tax returns in the u.s. Federal and oregon jurisdictions. The bureau's exempt organization information returns, as well as the corporate returns for pitb services, inc., are subject to examination by the internal revenue service, generally for three years after they are filed.”