Through what year has Chesters filed its tax returns?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company assesses its uncertain tax positions for the likelihood that they would be overturned upon Internal Revenue Service (IRS) examination or upon examination by state taxing authorities. The Company has assessed its uncertain tax positions and determined that it does not have any positions at December 31, 2024 and 2023, that it would be unable to substantiate. The Company has filed tax returns through 2023.
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the company has filed its tax returns through 2023. This indicates that Chesters is current with its tax obligations to both federal and state authorities.
As a limited liability company (LLC), Chesters has elected under Section 701 of the Internal Revenue Code (IRC) to have its income or loss taxed directly to its members. This means that Chesters itself does not pay federal income taxes; instead, the members report their share of the company's income or loss on their individual tax returns. Therefore, no income tax provision is required at the company level.
Chesters also assesses its uncertain tax positions, evaluating the likelihood that these positions would be overturned upon examination by the IRS or state taxing authorities. For the years ending December 31, 2024 and 2023, Chesters determined that it did not have any uncertain tax positions that it would be unable to substantiate. This suggests that Chesters maintains a conservative approach to tax compliance and avoids aggressive tax strategies.