What was the income tax expense for 1-800-GOT-JUNK? for the period ended May 31, 2025?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the total income tax expense for the period ended May 31, 2025, was $85,423. This amount is comprised of two components: current income tax expense of $25,716 and deferred income tax expense of $59,707.

For a prospective franchisee, understanding the breakdown between current and deferred income tax is crucial. Current income tax represents the actual tax liability for the period, while deferred income tax reflects future tax obligations or benefits arising from temporary differences between the book value of assets and liabilities and their tax bases. These temporary differences can result from items like depreciation methods or revenue recognition timing.

Additionally, the notes to the financial statements provide further details on income taxes. The provision for income taxes is based on a combined federal and state income tax rate of 26.74%. The document also mentions that 1-800-GOT-JUNK? is no longer subject to U.S. federal or state income tax examinations for fiscal years prior to December 31, 2019, which could be reassuring for a franchisee concerned about potential past tax liabilities. Reviewing these details gives potential franchisees a clearer picture of 1-800-GOT-JUNK?'s tax obligations and how they manage their tax liabilities.