For Benihana, what federal tax years remain subject to examination?

According to Benihana's 2024 Franchise Disclosure Document, the company's federal tax filings are subject to examination for the tax years 2020 through 2022. This means that the IRS could potentially audit Benihana's federal tax returns for these years.

In addition, the document states that Benihana's state and local tax filings are subject to examination for tax years 2019 through 2022. Net operating loss (NOL) carryforwards are subject to examination regardless of whether the tax year in which they are generated has been closed by statute. The amount subject to disallowance is limited to the NOL utilized. Accordingly, Benihana may be subject to examination for prior NOLs generated as such NOLs are utilized.

For a prospective franchisee, this information indicates that Benihana's past tax filings are still open to scrutiny by tax authorities, which is a normal part of business. It also highlights the importance of properly documenting and reporting any net operating losses, as these can be examined even if the original tax year is closed. Franchisees should consult with a financial advisor to understand the implications of these tax matters.