For which income taxes did City Publications perform its evaluation of uncertain tax positions?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company adopted ASC 740-10-25-6 "Accounting for Uncertainty in Income Taxes", that requires the Company to disclose uncertain tax positions. Under the standard an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold upon examination by taxing authorities.
Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements or that would affect the Company's member. The Company's evaluation was performed for the years ended December 31, 2024, 2023, and 2022 for U.S. Federal Income Tax and for the State of Georgia Income Tax.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company performed an evaluation of uncertain tax positions for U.S. Federal Income Tax and the State of Georgia Income Tax. This evaluation was conducted for the years ending December 31, 2024, 2023, and 2022.
City Publications adopted ASC 740-10-25-6, "Accounting for Uncertainty in Income Taxes", which mandates the disclosure of uncertain tax positions. As part of this standard, City Publications is required to recognize tax positions that meet a "more likely than not" threshold upon examination by taxing authorities.
Based on their evaluation, City Publications concluded that there were no significant uncertain tax positions requiring recognition in their financial statements or that would affect the company's members. This suggests that City Publications believes it has appropriately accounted for its tax liabilities and that its tax positions are likely to be sustained if challenged by tax authorities.