Note 5. Income Taxes

As of December 30, 2018, the Company had no unrecognized tax benefits. As of April 1, 2018, the Company had a gross amount of unrecognized tax benefits of $112,700 ($87,200 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 2019 was ($241,200) (net of federal benefit). The cumulative amount included in the consolidated balance sheet as of December 30, 2018 was $0. 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 2018 was an expense of $34,600 (net of federal benefit). The cumulative amount of interest and penalties included as a liability in the consolidated balance sheet as of April 1, 2018 was $250,500 (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 April 1, 2018 of unrecognized tax benefit	$	112,700
Increases related to current period tax positions		3,500
Reductions as a result of a lapse in the applicable statute of limitations		(116,200)
Ending balance at December 30, 2018 of unrecognized tax benefits	$	—