Income Taxes

3 Months Ended

Jun. 30, 2013

Income Taxes [Abstract]

Income Taxes

Note 4. Income Taxes

As of June 30, 2013, the Company had a gross amount of unrecognized tax benefits of $568,800 ($369,700 net of federal benefit).  As of March 31, 2013, the Company had a gross amount of unrecognized tax benefits of $631,100 ($416,500 net of federal benefit).

The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as income taxes. The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for the first three months of our fiscal 2014 was a benefit of $22,100 (net of federal benefit) due to the expiration of a statute of limitations relating to an uncertain tax position. The cumulative amount included in the consolidated balance sheet as of June 30, 2013 was $291,400 (net of federal benefit). The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for the first three months of our fiscal 2013 was $17,800 (net of federal benefit) and the cumulative amount included in the consolidated balance sheet as of March 31, 2013 was $309,000 (net of federal benefit).

A reconciliation of the changes in the gross balance of unrecognized tax benefits, net of interest is as follows:

Beginning balance at March 31, 2013 of unrecognized tax benefit	$	631,100
Reversal related to statute expiration		(67,400	)
Increases related to current period tax positions		5,100
Ending balance at June 30, 2013 of unrecognized tax benefits	$	568,800