For Benihana, what tax years are still subject to examination for state and local tax filings?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in condenses in c
F-17
Included in the balance of unrecognized tax benefits as of December 31, 2023 and December 31, 2022, are zero and less than $0.1 million, respectively, of tax benefits that, if recognized, would result in adjustments to deferred taxes.
The Company is subject to income taxes in the U.S. federal jurisdiction, and the various states and local jurisdictions in which it operates. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require signifi
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's state and local tax filings are subject to examination for tax years 2019 through 2022. This means that state and local tax authorities can still audit Benihana's tax returns for these years to ensure compliance with tax laws and regulations.
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 Benihana franchisee, this information is relevant because it provides insight into the company's ongoing tax obligations and potential liabilities. While the franchisee will be responsible for their own business's tax obligations, understanding the parent company's tax situation can offer a broader view of the financial health and compliance practices of Benihana. It is important to note that tax regulations are subject to interpretation and require significant judgment to apply, which can introduce uncertainty and potential for adjustments.