Note 7. Income Taxes

As of December 27, 2015, the Company had a gross amount of unrecognized tax benefits of $294,300 ($191,300 net of federal benefit). As of March 29, 2015, the Company had a gross amount of unrecognized tax benefits of $394,400 ($256,400 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 part of the provision for income taxes. The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for the first nine months of fiscal 2016 was an expense of $2,000 (net of federal expense). The cumulative amount included in the consolidated balance sheet as of December 27, 2015 was $325,200 (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 nine months of fiscal 2015 was a benefit of $47,600 (net of federal benefit). The cumulative amount of interest and penalties included in the consolidated balance sheet as of March 29, 2015 was $323,800 (net of federal benefit).

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



Beginning balance at March 29, 2015 of unrecognized tax benefit	$	394,400
Increases related to current period tax positions		7,700
Reductions as a result of a lapse in the applicable statute of limitations		(107,800)
Ending balance at December 27, 2015 of unrecognized tax benefits	$	294,300