Note M - Income Taxes

9 Months Ended

Dec. 26, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE M – INCOME TAXES

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted into law which among other provisions increases the limitation on the allowed business interest expense deduction from 30 percent to 50 percent of adjusted taxable income for tax years beginning January 1, 2019 and 2020. Additionally, the CARES Act allows businesses to immediately expense the full cost of Qualified Improvement Property, retroactive to tax years beginning on or after January 1, 2018.

The income tax provisions for the thirty-nine week periods ended December 26, 2021 and December 27, 2020 reflect effective tax rates of 28.1% and 27.7%, respectively.

The amount of unrecognized tax benefits at December 26, 2021 was $445,000 all of which would impact Nathan’s effective tax rate, if recognized. As of December 26, 2021, Nathan’s had $307,000 of accrued interest and penalties in connection with unrecognized tax benefits.