For Southern Steer, what calendar years are currently open and available for IRS review?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The company has elected under the Internal Revenue Code to be an S Corporation. In lieu of corporate taxes, the company's income or loss flows through to the Stockholders. Therefore, no provision for federal income taxes has been included in the financial statements. The open years available for IRS review are calendar year 2021 through 2023.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the calendar years 2021 through 2023 are open and available for IRS review. Because Southern Steer operates as an S Corporation, its income or loss is passed through to its stockholders, meaning the company itself isn't subject to federal income taxes. Instead, the individual stockholders report their share of the company's income or loss on their personal tax returns.
This detail is important for prospective franchisees because it provides insight into the company's financial structure and tax obligations. While the company's income tax responsibilities are minimal, franchisees should be aware that the IRS could potentially review the company's tax filings for those open years, which could indirectly affect the stockholders.
It is standard accounting practice to keep tax years open for potential review by tax authorities for a certain period, typically three years. Franchisees should consult with a financial advisor to understand the full implications of Southern Steer's tax structure and open tax years.