In what year did the IRS initiate an Employment Review of Batteries Plus Bulbs' related filings?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
g an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Holdings has applied the uncertain tax position guidance to all tax positions for which the statute of limitations remained open.
Holdings' federal income tax returns are subject to examination generally for three years after t
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, in 2022, the IRS notified the company that it was initiating an Employment Review of the company's 2019 related filings. The results of this review were extended to include both 2020 and 2021. The IRS concluded their Employment Review in January 2023, which resulted in Batteries Plus Bulbs paying the US Treasury $88.
This indicates that Batteries Plus Bulbs was subject to scrutiny by the IRS regarding its employment-related tax filings. The review covered filings from 2019 through 2021. The fact that the review concluded with a payment to the US Treasury suggests that some discrepancies or errors were found in the filings.
For a prospective franchisee, this information highlights the importance of ensuring compliance with all tax regulations. While the amount paid was relatively small ($88), the review itself could have been time-consuming and disruptive. It also shows that even established companies like Batteries Plus Bulbs are not immune to tax audits and reviews. A potential franchisee should inquire about the company's internal controls and procedures for ensuring tax compliance to avoid similar issues.