Income Taxes

9 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

INCOME TAXES

8. INCOME TAXES

As of June 30, 2012, the Company had $3,627,000 of unrecognized tax benefits related to uncertain income tax positions, including accrued interest and penalties of $1,564,000. The Company records interest and penalties related to unrecognized tax benefits in its income tax provision. If recognized, the portion of the liabilities for unrecognized tax benefits that would impact the Company’s effective tax rate was $2,674,000, net of federal benefit.

During the twelve months subsequent to June 30, 2012, it is reasonably possible that the gross unrecognized tax benefits could potentially increase by approximately $535,000 (of which approximately $481,000, net of federal benefit, would affect the effective tax rate) for uncertain tax positions, including the continued effect of interest on unrecognized tax benefits and limitations on certain potential tax credits, partially offset by the effect of expiring statutes of limitations and settlements.

The Company’s United States Federal income tax returns for tax years ended September 30, 2008 and thereafter remain subject to examination by the United States Internal Revenue Service. The Company also files returns in Canada, India and numerous United States state jurisdictions, which have varying statutes of limitations. Generally, Canadian tax returns for tax years ended September 30, 2007 and thereafter, Indian tax returns for tax years ended March 31, 2009 and thereafter, and United States state tax returns for tax years ended September 30, 2007 and thereafter, depending upon the jurisdiction, remain subject to examination. However, the statutes of limitations on certain of the Company’s United States state returns remain open for tax years prior to fiscal 2007.