Note 8 - Unrecognized Tax Benefits

6 Months Ended

Oct. 31, 2014

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8 . Unrecognized Tax Benefits

The total amount of gross unrecognized tax benefits was $9,244 at April 30, 2014. At October 31, 2014, gross unrecognized tax benefits were $10,212. If this unrecognized tax benefit were ultimately recognized, $6,760 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $217 at October 31, 2014, and $402 at April 30, 2014. Net interest and penalties included in income tax expense for the six months ended October 31, 2014, was a net benefit of $185 and an expense of $102 for the same period of 2014.

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 currently has no ongoing federal or state income tax examinations. The Company does not have any outstanding litigation related to tax matters. At this time, management expects the aggregate amount of unrecognized tax benefits to decrease by approximately $2,561 within the next 12 months. The expected decrease is due to the expiration of the statute of limitations related to certain federal and state income tax filings positions.

The federal statute of limitation remains open for the tax years 2010 and forward. Tax years 2009 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.