Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 81

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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The Company files a U.S. federal income tax return
and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations
by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal income tax examination for
the years ended January 31, 2015 through January 31, 2022 related to refined

22

coal production tax credits pursuant to IRC Section 45 and research
and experimentation credits pursuant to IRC Section 41 claimed during those years. The IRS has given us notice they plan to deny these
credits. We plan to vigorously defend these credits.

On a quarterly and annual basis, the Company accrues for the effects
of open uncertain tax positions and the related potential penalties and interest. It is reasonably possible that the amount of the unrecognized
tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months.

A reconciliation of the beginning and ending amount
of unrecognized tax benefits, including interest and penalties, for the six-month periods ended July 31, 2025 and 2024, is as follows
(amounts in thousands):

    Six Months Ended  July 31, 

    2025  
    2024 

    Unrecognized tax benefits, beginning of period 
    $18,978  
    $18,965 
  
    Changes for prior years’ tax positions 
     13  
     14 
  
    Changes for current year tax positions 
     -  
     - 
  
    Unrecognized tax benefits, end of period 
    $18,991  
    $18,979 

At July 31, 2025 and January 31, 2025 the unrecognized
tax benefits were included within the following lines on the accompanying Consolidated Balance Sheets (amounts in thousands):

    July 31,
    2025  
    January
    31, 2025 

    Refundable income taxes 
    $2,002  
    $2,002 
  
    Deferred taxes 
     11,811  
     12,037 
  
    Long-term taxes payable 
     4,560  
     4,334 
  
    Other long-term liabilities 
     618  
     605 

    Unrecognized tax benefits, end of period 
    $18,991  
    $