Note K - Income Taxes

9 Months Ended

Dec. 29, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE K – INCOME TAXES             

The income tax provisions for the

thirty-nine

week periods ended

December 29, 2019

and

December 23, 2018

reflect effective tax rates of

26.1%

and

27.8%,

respectively.

Nathan’s effective tax rates for the

thirty-nine

week periods ended

December 29, 2019

and

December 23, 2018

were reduced by

1.6%

and

0.2%,

respectively, as a result of the tax benefits associated with stock compensation. For the

thirty-nine

week periods ended

December 29, 2019

and

December 23, 2018,

excess tax benefits of

$228,000

and

$47,000,

respectively, were reflected in the Consolidated Statements of Earnings as a reduction in determining the provision for income taxes. Nathan’s effective tax rates without these adjustments would have been

27.8%

for the fiscal

2020

period and

28.0%

for the fiscal

2019

period.

The amount of unrecognized tax benefits at

December 29, 2019

was

$300,000

all of which would impact Nathan’s effective tax rate, if recognized. As of

December 29, 2019,

Nathan’s had

$269,000

of accrued interest and penalties in connection with unrecognized tax benefits.

In

November 2019,

the State of New Jersey notified Nathan’s that our tax returns for the years ended

March 2016,

2017,

and

2018

will be audited. The audit is ongoing.