Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 390

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 390
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 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 jurisdictions. The years open for audit for federal and state are 2021 through 2024. The Company is currently under audit in Massachusetts for tax year 2021 by the Massachusetts Department of Revenue. There are no other open income tax examinations as of December 31, 2024. The Company is also subject to income taxes in Canada, France, Ireland, the United Kingdom, Singapore, Taiwan, Japan, the United Arab Emirates and Hong Kong. The earliest year open for audit for the Company’s foreign jurisdictions is 2018. Global Intangible Low-Taxed Income (“GILTI”) The Tax Cuts and Jobs Act enacted in December 2017 introduced comprehensive tax reform, including a new tax on GILTI provisions under Section 951A of the Internal Revenue Code. These provisions require the Company to include in its U.S. taxable income the GILTI of its controlled foreign corporations. The Company has made an accounting policy election to treat GILTI as a period cost. Under this policy, the Company recognizes the tax expense related to GILTI in the year in which the tax is incurred. As a result, the Company does not record deferred tax assets or liabilities for temporary differences that are expected to reverse as GILTI in future years. For the years ended