What was the reported amount of accrued income taxes for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
M&T, C&S and CPI are corporations and provide for income taxes based on income reported for financial reporting purposes. Certain revenue and charges to earnings differ as to timing from those deducted for tax purposes; these relate primarily to allowances for doubtful receivables, accrued liabilities, depreciation, and net operating loss carryforwards. The tax effects of these differences are recorded as deferred income taxes.
The Company's policy is to evaluate the likelihood that its uncertain tax positions will prevail upon examination based on the extent to which those positions have substantial support within the IRC and Regulations, Revenue Rulings, court decisions, and other evidence. The federal and state income tax returns of the Company are subject to examination by the income taxing authorities, generally for three years after they were filed. Interest and penalties, if any, assessed by income taxing authorities, will be recorded in operating expenses.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not contain a specific figure for accrued income taxes for Carbones Pizzeria. However, the document does discuss the company's approach to income taxes. The FDD states that M&T, C&S, and CPI are corporations that account for income taxes based on income reported for financial reporting purposes. The document mentions that certain revenue and charges may differ in timing for tax purposes, leading to deferred income taxes. These differences primarily relate to allowances for doubtful receivables, accrued liabilities, depreciation, and net operating loss carryforwards. The tax effects of these differences are recorded as deferred income taxes.
Additionally, the FDD mentions that the company evaluates the likelihood of its uncertain tax positions prevailing upon examination, based on substantial support within the IRC and Regulations, Revenue Rulings, court decisions, and other evidence. The federal and state income tax returns are subject to examination by taxing authorities, generally for three years after filing. Any interest and penalties assessed by these authorities will be recorded in operating expenses.
For a prospective Carbones Pizzeria franchisee, this means that while the exact amount of accrued income taxes is not disclosed in these excerpts, the FDD provides insight into how the company handles income taxes and potential tax-related issues. It is important to note that the financial statements as of and for the 4-month period February 28, 2025, are prepared without an audit. Prospective franchisees should be aware that no certified public accountant has audited these figures or expressed an opinion regarding the contents and form.
To gain a clearer understanding of the company's accrued income taxes, a prospective franchisee should consider asking the franchisor for more detailed financial statements or consulting with a financial advisor to review the company's tax-related information.