What tax years are currently open for examination by taxing authorities for Burros Fries?

According to the 2024 FDD, Burros Fries' tax years 2020 through 2022 are currently open for examination by taxing authorities. This means that the federal or state taxing authorities could potentially audit the company's tax filings for these years.

If an audit occurs, the taxing authorities could challenge the tax positions Burros Fries has taken. Any adjustments to the company's taxable income resulting from such challenges would be taxable at statutory rates and could be subject to the utilization of net operating loss carryforwards. However, Burros Fries' management believes that the tax positions they have taken would be sustained in the event of an audit, and any resulting tax impact would be immaterial to the company's financial statements as a whole.

It is also noted that Burros Fries' policy is to recognize any interest and penalties associated with its tax positions separately as interest and penalties expense, respectively. While no tax years are currently under audit, the possibility remains for the tax years 2020-2022.