What was the amount of unrecognized tax benefits for Carls, at the end of the year?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Unrecognized tax benefits, beginning of year | $ 3,628 | $ 4,424 |
| Gross increases related to tax positions taken in prior years | 529 | 37 |
| Gross decreases related to tax positions taken in prior years | (1,002) | (768) |
| Gross increases related to tax positions taken in the current year | 478 | 417 |
| Reductions to tax positions due to settlements with taxing authorities and lapses of statutes | ||
| of limitations | (286) | (482) |
| Unrecognized tax benefits, end of year | $ 3,347 | $ 3,628 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the amount of unrecognized tax benefits at the end of fiscal year 2024 was $3,347, while at the end of fiscal year 2023, it was $3,628.
The document also provides a reconciliation of the total amounts of unrecognized tax benefits, detailing gross increases and decreases related to tax positions taken in prior and current years, as well as reductions due to settlements with taxing authorities and lapses of statutes of limitations.
Understanding unrecognized tax benefits is crucial for prospective franchisees as it reflects potential tax liabilities that could impact the financial health of Carls. Monitoring these figures and their reconciliation can provide insights into the company's tax strategies and potential risks associated with tax positions.