Cypress Lawn Cemetery Association

PART X, LINE 2:

“Cypress lawn cemetery association and the endowment care fund operate exclusively for the benefit of its members and are not operated for profit. Generally, a qualified nonprofit mutual cemetery company is tax-exempt from federal and state income taxes under section 501(c)(13) of the internal revenue code and california revenue and taxation code section 23701c. However, income from certain activities not related to its tax-exempt purpose may be subject to taxation as unrelated business income. The special care fund, the olivet special care fund, and the preneed funeral trust fund are trusts subject to taxation under section 685 of the internal revenue code and california revenue and taxation code section 17760.5. The olivet endowment care fund is a trust subject to taxation under section 642(i) of the internal revenue code. Cfs and its subsidiaries are corporations under subchapter c of the internal revenue code and therefore subject to federal and california state income taxes. The association's income taxes are accounted for as an expense or benefit in the current period. The association and its wholly-owned subsidiaries and affiliated entities file separate federal and california not-for-profit, corporate and trust tax returns. As a result, the federal and state statutes of limitation vary. With respect to the association's unrelated business income and cypress funeral preneed trust, the statute of limitation is open for all tax years. For all other entities, the association's tax returns are generally no longer subject to examination for tax years beginning after september 30, 2019. The filings are subject to tax inspection by the internal revenue service and the state of california in connection with its tax-exempt activities. The association had combined income tax expense of $57,240 and $894,688 for the years ended september 30, 2024 and 2023, respectively. The tax is measured by applying federal and state statutory rates to the funds' taxable income as reported on its income tax returns. Deferred taxes were not significant for the years ended september 30, 2024 and 2023.”