Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 413

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 413
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 17 C.F.R. § 200.83 Significant judgment is required in evaluating the Company’s uncertain tax positions and determining the provision for income taxes. The Company follows the provisions of FASB ASC 740, “Accounting for Uncertainty in Income Taxes—An Interpretation of FASB No. 109.” ASC 740 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statement. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized upon the adoption of ASC 740 and in subsequent periods. As of December 31, 2024 and 2023, the Company maintained uncertain tax position reserves of $4.8 million and $2.2 million, respectively, for its current and prior year federal and state R&D credits given the inherent judgment that is involved in the credit calculation. Of these amounts, $4.4 million would reduce the effective tax rate, if recognized. The interest or penalties related to these uncertain tax positions are immaterial and are recorded as a component of income tax expense. The following tables present activity related to unrecognized tax benefits as of the dates indicated (in thousands): Table 14.5. Summary of Uncertain Tax Positions Activities

|                                                             |     |   | December 31, 2024 |     |   | December 31, 2023 |   |
|:------------------------------------------------------------|:----|:--|------------------:|:----|:--|------------------:|:--|
| Beginning balance                                           |     | $ |             2,158 |     | $ |             3,812 |   |
| Increase related to tax positions taken during current year |     |   |             1,511 |     |   |               253 |   |
| Decrease related to tax positions taken during prior years  |     |   |             1,154 |     |   |            (1,907 | ) |
| Ending balance                                              |     | $ |             4,823 |     | $ |             2,158 |   |

None of the $4.8 million of uncertain tax position reserves as of December 31, 2024 are anticipated to reverse within the next 12 months. Management believes that it has sufficient accrued liabilities as of December 31, 2024 for uncertain tax position exposures and related interest expense. The Company is subject to U.S. income taxes in federal and various state