How does Aunt Millies Bakeries recognize interest and penalties related to income tax matters?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company did not have any amounts accrued for interest and penalties at September 30, 2024 and 2023.
Due to its pass-through status, the Company is not subject to U.S. federal income tax or most state income tax. The Company is no longer subject to examination by taxing authorities for years before September 30, 2021. The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the company recognizes interest and penalties related to income tax matters as part of its income tax expense. The document specifies that Aunt Millies Bakeries had no accrued amounts for interest and penalties as of September 30, 2024, and September 30, 2023.
Because of its pass-through status, Aunt Millies Bakeries is not subject to U.S. federal income tax or most state income taxes. Additionally, the company is no longer subject to examination by taxing authorities for years before September 30, 2021.
The company does not anticipate significant changes in the total amount of unrecognized tax benefits within the next 12 months. This information is relevant to potential franchisees as it provides insight into how Aunt Millies Bakeries handles its tax obligations and potential liabilities, which can be an indicator of the company's financial health and stability.