What was Itan's total state tax liability for 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued payroll | $ | 4,743 | $ | 5,848 |
|---|---|---|---|---|
| Credit card payable | 100 | 42,852 | 25,551 | |
| $ | 47,595 | $ | 31,399 |
NOTE 8 CONTRACT LIABILITIES
The Company signed a ten year, non-refundable Area Development Agreement (ADA) in December 2023. Contract liabilities have been recognized for the full amount of the agreement of $115,000 as of December 31, 2023. The ADA is for
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company's total state tax liability for 2023 includes both current and deferred taxes. The current state tax liability was $32,905, while the deferred state tax liability was $818. Therefore, the total state tax liability for Itan in 2023 amounted to $33,723.
It is important to understand the distinction between current and deferred taxes. Current taxes represent the amount due and payable to the state government for the 2023 tax year. Deferred taxes, on the other hand, arise from temporary differences between the book (GAAP) and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in future years.
For a prospective Itan franchisee, this information provides insight into the company's tax obligations and financial reporting practices. While the franchisee will be responsible for their own business's tax liabilities, understanding the franchisor's tax situation can offer a glimpse into the overall financial health and stability of the Itan franchise system. Reviewing these figures over multiple years, if available, can reveal trends and potential tax planning strategies employed by the company.