Does Burros Fries state whether any tax years are currently under audit?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
to the financial statements of the Company taken as a whole. No tax years are currently under audit. Tax years 2020 through 2021 are currently open for examination by taxing authorities. The Company's policy regarding any interest and penalties associated with its tax position is to recognize amounts separately as interest and penalties expense, respectively
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, no tax years are currently under audit. However, the FDD states that tax years 2020 through 2021 are currently open for examination by taxing authorities.
This means that while Burros Fries is not presently undergoing an active audit, their tax filings from 2020 and 2021 are still subject to review by tax authorities. This is a fairly standard situation, as tax authorities typically have a window of time to examine past filings and potentially raise questions or make adjustments.
For a prospective franchisee, this information indicates that Burros Fries's financial records are transparent and have been reviewed by an independent auditor. While there are no current audits, the possibility of examination for the 2020-2021 tax years exists, though Burros Fries management believes that their tax positions would be sustained in the event of an audit and that any resultant tax would be immaterial to the financial statements.