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Income Taxes
 6 Months Ended
Nov. 30, 2011
Income Taxes  
Income Taxes

7.             Income Taxes

 

In the normal course of business, Cintas provides for uncertain tax positions and the related interest and adjusts its unrecognized tax benefits and accrued interest accordingly.  During the three months ended November 30, 2011, unrecognized tax benefits decreased by approximately $0.3 million and accrued interest increased by approximately $0.5 million.  During the six months ended November 30, 2011, unrecognized tax benefits decreased by approximately $0.1 million and accrued interest increased by approximately $1.6 million.

 

All U.S. federal income tax returns are closed to audit through fiscal 2008.  Cintas is currently in advanced stages of audits in certain foreign jurisdictions and certain domestic states. The years under audit cover fiscal years back to 2004.  Based on the resolution of the various audits, it is reasonably possible that the balance of unrecognized tax benefits could decrease by $11.6 million for the fiscal year ending May 31, 2012.

 

On December 23, 2011, the U.S. Department of the Treasury and the Internal Revenue Service issued temporary regulations (Regulations Section 2011-14) that provide guidance on amounts paid to improve tangible property. These regulations also provide guidance on amounts paid to acquire or produce tangible property, as well as guidance regarding the disposition of property.  Cintas is currently reviewing these regulations to determine the effect, if any, on Cintas’ financial statements.