Unrecognized Tax Benefits

9 Months Ended

Jan. 31, 2024

Income Tax Disclosure [Abstract]

Unrecognized Tax Benefits

Unrecognized Tax Benefits

The total amount of gross unrecognized tax benefits was $13,128 and $10,957 at January 31, 2024 and April 30, 2023, respectively. If this unrecognized tax benefit were ultimately recognized, $10,371 is the amount that would impact our effective tax rate. The total amount of accrued interest and penalties for such unrecognized tax benefits was $598 at January 31, 2024, and $386 at April 30, 2023. Net interest and penalties included in income tax expense for the nine months ended January 31, 2024, was a net expense of $212 and a net expense of $179 for the same period in 2023.

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 2020 and forward. Tax years 2018 and forward are subject to audit by state tax authorities depending on open statute of limitations waivers and the tax code of each state.