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Note 9 - Income Taxes
 6 Months Ended
Mar. 29, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
9
INCOME TAXES
 
We recorded an income tax 
benefit
of $
2,331,000
 related to 
a loss
before taxes of $
7,321,000
 for the
13
weeks ended
March 29, 2020
, and an income tax 
benefit
of $
460,000
 related to 
income
before taxes of $
268,000
 for the 
26
weeks ended
March 29, 2020
. For the
13
weeks ended
March 31, 2019
, we recorded an income tax 
expense
of $
156,000
related to 
a loss
before taxes of $
2,171,000
 and an income tax 
expense
of $
4,670,000
 related to 
income
of $
13,062,000
 for the
26
weeks ended
March 31, 2019
.
The effective income tax rate for the 
13
and
26
weeks ended
March 29, 2020
was
31.8%
 and negative
171.6%
, respectively. The effective income tax rate for the 
13
and
26
weeks ended
March 31, 2019
was negative
7.2%
 and
35.8%
 
The primary differences between these rates and the U.S. federal statutory rate of
21%
are due to the effect of state taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, mark-to-market adjustments to value the Warrants and certain adjustments made to reflect the impact of the Transactions.
 
The CARES Act was enacted on
March 27, 2020.
The Company anticipates that it will realize benefits under the CARES Act related to payroll taxes, including deferrals of certain employer payroll tax payments in
2020
to the end of
2021
and
2022.
 
We file a consolidated federal tax return, as well as combined and separate tax returns in approximately
27
state and local jurisdictions. We do
not
currently have any federal tax examinations in progress. California is the only state with an income tax examination currently in progress. Our income tax returns have generally been audited or closed to audit through
2012.
See Note
12
 for a discussion of our tax audits.
 
At
September 29, 2019
, we had approximately
$63,048,000
of state net operating loss benefits. The Company consumed its federal net operating losses in the year ended
September 30, 2018.