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Note L - Income Taxes
6 Months Ended
Sep. 27, 2015
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE L – INCOME TAXES
 
The income tax provisions for the twenty-six week periods ended September 27, 2015 and September 28, 2014 reflect effective tax rates of 40.9% and 40.8%, respectively, which have been reduced from statutory rates by 0.1% and 0.4%, respectively, for the differing effects of tax exempt interest income.
 
The amount of unrecognized tax benefits at September 27, 2015 was $285,000, all of which would impact Nathan’s effective tax rate, if recognized. As of September 27, 2015, Nathan’s had $308,000 of accrued interest and penalties in connection with unrecognized tax benefits.
 
During the fiscal year ending March 27, 2016, Nathan’s will seek to settle additional uncertain tax positions with the tax authorities. As a result, it is reasonably possible the amount of unrecognized tax benefits, excluding the related accrued interest and penalties, could be reduced by up to $98,000, which would favorably impact Nathan’s effective tax rate, although no assurances can be given in this regard.
 
Nathan’s estimates that its annual tax rate for the fiscal year ending March 27, 2016 will be in the range of approximately 40.5% to 41.9%, excluding the potential impact of any reduction to the Company’s unrecognized tax benefits. The final annual tax rate is subject to many variables, including the effect of tax-exempt interest earned, among other factors, and therefore cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from our current estimates.
 
In June 2015, Nathan’s received notification from the New York State Department of Taxation and Finance that it is seeking to review Nathan’s tax returns for the period April 1, 2011 through March 31, 2014.