Unrecognized Tax Benefits

6 Months Ended

Oct. 31, 2022

Income Tax Disclosure [Abstract]

Unrecognized Tax Benefits

Unrecognized Tax BenefitsThe total amount of gross unrecognized tax benefits was $10,259 at April 30, 2022. At October 31, 2022, gross unrecognized tax benefits were $12,226. If this unrecognized tax benefit were ultimately recognized, $9,658 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $483 at October 31, 2022, and $371 at April 30, 2022. Net interest and penalties included in income tax

expense for the six months ended October 31, 2022, was a net expense of $112 and a net expense of $118 for the same period in 2021.

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 State of Michigan is currently examining tax years 2017, 2018, 2019 and 2020. The Company has no other 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 $2,100 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 2018 and forward. Tax years 2013 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.