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Income Taxes
 3 Months Ended
Apr. 29, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In August 2022, the Inflation Reduction Act of 2022 (“IRA”), was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax (the “Corporate AMT”) for tax years beginning after December 31, 2022 and levies a 1% excise tax on net stock repurchases after December 31, 2022. The excise tax on the net stock repurchase, Corporate AMT, or other provisions of the IRA did not have a material impact on our results of operations or financial position for the first quarter of fiscal 2024.
The effective income tax rate was 26.2% for the first quarter of fiscal 2024 and 31.1% for the first quarter of fiscal 2023. The decrease in the first quarter of fiscal 2024 effective income tax rate was primarily due to the first quarter of fiscal 2023 reflecting the impairment of our minority investment in Familia with no estimated tax benefit that was partially offset by the resolution of various tax matters.
TJX had net unrecognized tax benefits of $266 million as of April 29, 2023, $265 million as of January 28, 2023 and $273 million as of April 30, 2022.
TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In the U.S. and India, fiscal years through 2010 are no longer subject to examination. In all other jurisdictions, fiscal years through 2011 are no longer subject to examination.
TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The accrued amounts for interest and penalties on the Consolidated Balance Sheets was $40 million as of April 29, 2023, $37 million as of January 28, 2023 and $44 million as of April 30, 2022.
Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the consolidated financial statements as of April 29, 2023. During the next 12 months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $54 million, which would reduce the provision for taxes on earnings.