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Note 10 - Income Taxes | 12 Months Ended
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Mar. 25, 2012
Income Tax Disclosure [Text Block] | NOTE J - INCOME TAXES The income tax provision (benefit) consists of the following for the fiscal years ended March 25, 2012, March 27, 2011 and March 28, 2010:
|  | March 25, 2012 |  |  | March 27, 2011 |  |  | March 28, 2010 |
Federal |  |  |  |  |  |  |  |  |
Current |  | $ | 1,274 |  |  | $ | 2,330 |  |  | $ | 2,538 |
Deferred |  |  | 1,566 |  |  |  | (1,545 | ) |  |  | (212 | )
|  |  | 2,840 |  |  |  | 785 |  |  |  | 2,326 |
State and local |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 534 |  |  |  | 734 |  |  |  | 452 |
Deferred |  |  | 475 |  |  |  | (412 | ) |  |  | (57 | )
|  |  | 1,009 |  |  |  | 322 |  |  |  | 395 |
|  | $ | 3,849 |  |  | $ | 1,107 |  |  | $ | 2,721 |
The total income tax provision for the fiscal years ended March 25, 2012, March 27, 2011 and March 28, 2010 differs from the amounts computed by applying the United States Federal income tax rate of 34% to income before income taxes as a result of the following:
|  | March 25, 2012 |  |  | March 27, 2011 |  |  | March 28, 2010 |
Computed “expected” tax expense |  | $ | 3,412 |  |  | $ | 1,129 |  |  | $ | 2,819 |
State and local income taxes, net of Federal income tax benefit |  |  | 682 |  |  |  | 274 |  |  |  | 391 |
Tax-exempt investment earnings |  |  | (178 | ) |  |  | (244 | ) |  |  | (272 | )
Reduction in uncertain tax positions |  |  | (24 | ) |  |  | (94 | ) |  |  | (198 | )
Nondeductible meals and entertainment and other |  |  | (43 | ) |  |  | 42 |  |  |  | (19 | )
|  | $ | 3,849 |  |  | $ | 1,107 |  |  | $ | 2,721 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
|  | March 25, 2012 |  |  | March 27, 2011 |
Deferred tax assets |  |  |  |  |  |
Accrued expenses |  | $ | 183 |  |  | $ | 183 |
Allowance for doubtful accounts |  |  | 44 |  |  |  | 14 |
Deferred revenue |  |  | 520 |  |  |  | 524 |
Depreciation expense |  |  | - |  |  |  | 143 |
Deferred stock compensation |  |  | 830 |  |  |  | 729 |
Excess of straight line over actual rent |  |  | 340 |  |  |  | 342 |
Litigation accrual |  |  | - |  |  |  | 2,000 |
Other |  |  | 20 |  |  |  | 20 |
Total gross deferred tax assets |  | $ | 1,937 |  |  | $ | 3,955 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Difference in tax bases of installment gains not yet recognized |  |  | - |  |  |  | 25 |
Deductible prepaid expense |  |  | 191 |  |  |  | 188 |
Unrealized gain on marketable securities |  |  | 307 |  |  |  | 296 |
Depreciation expense |  |  | 12 |  |  |  | - |
Other |  |  | 211 |  |  |  | 178 |
Total gross deferred tax liabilities |  |  | 721 |  |  |  | 687 |
Net deferred tax asset |  |  | 1,216 |  |  |  | 3,268 |
Less current portion |  |  | (338 | ) |  |  | (2,356 | )
Long-term portion |  | $ | 878 |  |  | $ | 912 |
A valuation allowance is provided when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. We consider the level of historical taxable income, scheduled reversal of temporary differences, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. Based upon these considerations, management believes that it is more likely than not that the Company will realize the benefit of this net deferred tax asset of $1,216 and $3,268 at March 25, 2012 and March 27, 2011, respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 25, 2012 and March 27, 2011.
|  | March 25, 2012 |  |  | March 27, 2011 |
Unrecognized tax benefits, beginning of year |  | $ | 318 |  |  | $ | 378 |
Increases based on tax positions taken in prior years |  |  | 119 |  |  |  | - |
Decreases of tax positions taken in prior years |  |  | (41 | ) |  |  | (73 | )
Increase based on tax positions taken in current year |  |  | 26 |  |  |  | 13 |
Settlements of tax positions taken in prior years |  |  | - |  |  |  | - |
Unrecognized tax benefits, end of year |  | $ | 422 |  |  | $ | 318 |
The amount of unrecognized tax benefits at March 25, 2012 and March 27, 2011 was $422 and $318, respectively, all of which would impact Nathan’s effective tax rate, if recognized. As of March 25, 2012 and March 27, 2011, the Company had $356 and $330, respectively, accrued for the payment of interest and penalties. The Company believes that it is reasonably possible that decreases in unrecognized tax benefits of up to $134 may be recorded within the next year. Nathan’s is subject to tax in the U.S. and various state and local jurisdictions. Effective May 28, 2010, the Company concluded its audit by the Internal Revenue Service for the fiscal year ended March 25, 2007, which resulted in no changes to the return as filed. New York State completed an examination of fiscal years ending March 2005 through March 2007, resulting in no changes to the returns as filed. New York City has examined tax years ending March 2008 through March 2010. The Company is reviewing a NYC proposed adjustment which has been accrued in the accompanying financial statements. Nathan’s has received notices from New York City and the States of Florida and Massachusetts that our tax returns for the fiscal years ended March 2008, March 2009 and March 2010 will be reviewed. Additionally, the State of Massachusetts has indicated that our tax return for the fiscal year ended March 2011 will also be reviewed. The earliest tax years’ that are subject to examination by taxing authorities by major jurisdictions are as follows:
Jurisdiction |  | Fiscal Year
Federal |  | 2009
New York State |  | 2009
New York City |  | 2008

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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