Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Income Taxes

v3.20.4
Note 13 - Income Taxes
9 Months Ended
Dec. 26, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
(
1
3
)     Income Taxes
 
The Company accounts for income taxes using the asset and liability method as codified in Topic
740.
Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards.
 
The Company recorded
$2,000
in income tax expense for the
nine
months ended
December 26, 2020
and
December 28, 2019.
The effective tax rate for the
nine
months ended
December 26, 2020
and
December 28, 2019
was
0%
each year, primarily due to a valuation allowance recorded against the net deferred tax asset balance.
 
As of
December 26, 2020,
the Company had recorded
$132,000
for unrecognized tax benefits related to uncertain tax positions. The unrecognized tax benefit is netted against the non-current deferred tax asset on the Consolidated Balance Sheet. The Company does
not
expect the liability for unrecognized tax benefits to change materially within the next
12
months.