Note 8. Income Taxes

As of September 25, 2016, the Company had a gross amount of unrecognized tax benefits of $291,700 ($192,500 net of federal benefit). As of March 27, 2016, the Company had a gross amount of unrecognized tax benefits of $290,400 ($188,800 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 six months of fiscal 2017 was $27,000 (net of federal benefit). The cumulative amount included in the consolidated balance sheet as of September 25, 2016 was $364,000 (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 six months of fiscal 2016 was $31,800 (net of federal benefit). The cumulative amount of interest and penalties included in the consolidated balance sheet as of March 27, 2016 was $339,800 (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 27, 2016 of unrecognized tax benefit	$	290,400
Increases related to current period tax positions		1,300
Reductions as a result of a lapse in the applicable statute of limitations		—
Ending balance at September 25, 2016 of unrecognized tax benefits	$	291,700