For what years is Bor Restoration no longer subject to state tax audits?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company is no longer subject to U.S. federal tax audits on its Form 1040 by taxing authorities for years ending prior to December 31, 2019. The Company is no longer subject to state tax audits on its Form 104 state tax return by taxing authorities for years ending prior to December 31, 2018. The years subsequent to this year contain matters that could be subject to differing interpretations of applicable tax laws and regulations. Although the outcome of tax audits is uncertain, the Company believes no issues would arise.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the company is not subject to state tax audits for years ending prior to December 31, 2018. This means that state taxing authorities cannot audit Bor Restoration's state tax returns for these earlier years. However, the FDD notes that years subsequent to 2018 may contain matters subject to differing interpretations of applicable tax laws and regulations.
While the outcome of tax audits is always uncertain, Bor Restoration believes that no issues would arise from potential audits for those later years. This statement reflects the company's confidence in its tax positions and compliance.
For a prospective franchisee, this information provides some assurance that the company's tax matters are in order. However, it is important to note that tax laws and regulations can change, and future audits are always a possibility. A potential franchisee may want to consult with a tax professional to assess the potential tax implications of investing in a Bor Restoration franchise.