What was the total current income tax benefit (provision) for 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current: | |||
|---|---|---|---|
| Federal | $ (262,480) | $ 8,833 | |
| State | (78,963) | 2,662 | |
| Total current | (341,443) | 11,495 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts experienced a total current income tax provision of $(341,443) in 2023. This figure represents the sum of federal and state current income taxes. The federal component was $(262,480), while the state component was $(78,963).
For a prospective franchisee, this information is useful in understanding the tax implications for 1 800 Packouts. A tax provision indicates an expense, meaning 1 800 Packouts had to set aside money to pay its current income taxes. This contrasts with a tax benefit, which would reduce the company's tax liability.
It's important to note that this is just one component of the overall tax picture for 1 800 Packouts. The FDD also details deferred income taxes, which arise from temporary differences between the accounting and tax treatment of certain items. Reviewing the complete income tax information will give potential franchisees a more comprehensive view of the company's tax situation.