Unrecognized Tax Benefits

3 Months Ended

Jul. 31, 2023

Income Tax Disclosure [Abstract]

Unrecognized Tax Benefits

Unrecognized Tax Benefits

The total amount of gross unrecognized tax benefits was $11,980 and $10,957 at July 31, 2023 and April 30, 2023, respectively. If this unrecognized tax benefit were ultimately recognized, $9,465 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $445 at July 31, 2023, and $386 at April 30, 2023. Net interest and penalties included in income tax expense for the three months ended July 31, 2023 and 2022, was a net expense of $59 and $53, respectively.

A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. The Company has no ongoing federal or state income tax examinations. At this time, the Company’s best estimate of the reasonably possible change in the amount of the gross unrecognized tax benefits is a decrease of $2,500 during the next twelve months mainly due to the expiration of certain statute of limitations.

The federal statute of limitations remains open for the tax years 2019 and forward. Tax years 2016 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.