Inquiring Systems Inc.

“The organization is exempt from income taxation under section 501(c)(3) of the internal revenue code (irc) and california revenue and taxation code section 23701d, though it would be subject to tax on income unrelated to its exempt purposes (unless that income is otherwise excluded by the irc). The organization qualifies for the charitable contribution deduction under section 170(b)(1)(a)(vi) and has been classified as an organization that is not a private foundation under section 509(a)(1). The organization is subject to "accounting for uncertainty in income taxes" under accounting standards codification (asc) 740 income taxes. The codification requires the evaluation of tax positions taken or expected to be taken in the organization's tax returns and does not allow recognition of tax positions which do not meet a "more-likely-than-not" threshold of being sustained by the applicable tax authority. The organization does not believe it has taken any tax positions that would not meet this threshold. The organization's policy is to reflect interest and penalties related to uncertain tax positions as part of income tax expense, when and if they become applicable. The organization's federal and state income tax returns are subject to possible examination by the taxing authorities until the expiration of the related statutes of limitations on those tax returns. In general, the federal income tax returns have a three year statute of limitations, and the state income tax returns have a four year statute of limitations.”

“Loss on disposal of equipment difference in revenue/expense classification between audit and 990”

“Loss on disposal of equipment difference in revenue/expense classification between audit and 990”

“Isi is exempt from federal and state income taxes under internal revenue code section 501 (c)(3) and california franchise tax board code section 23701d. Therefore, no provision for income taxes has been made in the accompanying financial statements. In addition, the internal revenue service has determined isi is not a "private foundation" within the meaning of section 509(a) of the internal revenue code. Management of isi considers the likelihood of changes by taxing authorities in its filed tax returns and recognizes a liability for or discloses potential significant changes if management believes it is more likely than not for a change to occur, including changes to isi's status as a not-for-profit entity. Management believes isi met the requirements to maintain its tax-exempt status and has no income subject to unrelated business income tax; therefore, no provision for income taxes has been provided in these financial statements. Isi's tax returns for the past three years are subject to examination by tax authorities and may change upon examination.”