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Note J - Income Taxes
3 Months Ended
Jun. 29, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

NOTE J – INCOME TAXES


The income tax provisions for the thirteen-week periods ended June 29, 2014 and June 30, 2013 reflect effective tax rates of 40.7% and 39.3%, respectively, which have been reduced from statutory rates by 0.4% and 0.7%, respectively, for the differing effects of tax exempt interest income. Nathan’s expects that its federal income tax rate will increase to 35% beginning this fiscal year.


The amount of unrecognized tax benefits at June 29, 2014 was $291,000, all of which would impact Nathan’s effective tax rate, if recognized. As of June 29, 2014, Nathan’s had $339,000 of accrued interest and penalties in connection with unrecognized tax benefits.


During the fiscal year ending March 29, 2015, 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 $64,000, 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 29, 2015 will be in the range of approximately 39.5% to 41.5%. 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.