Unrecognized tax benefits that would impact tax rate

  
[Table of Contents](#i1d117440a79147f69db4408bc4f22334_10) Part IV

|  |  |  |
| --- | --- | --- |
|  |  |  |
|  |

IRON MOUNTAIN INCORPORATEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)DECEMBER 31, 2021(In thousands, except share and per share data)10. INCOME TAXES (CONTINUED) The normal statute of limitations for United States federal tax purposes is three years from the date the tax return is filed; however, the statute of limitations may remain open for periods longer than three years in instances where a federal tax examination is in progress. The 2020, 2019 and 2018 tax years remain subject to examination for United States federal tax purposes as well as net operating loss carryforwards utilized in these years. The normal statute of limitations for state purposes is between three to five years. However, certain of our state statute of limitations remain open for periods longer than this when audits are in progress.We are subject to income taxes in the United States and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have business operations or a taxable presence. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2021, we had $27,772 of reserves related to uncertain tax positions, of which $24,627 and $3,145 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. As of December 31, 2020, we had $25,969 of reserves related to uncertain tax positions, of which $23,402 and $2,567 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates.A rollforward of unrecognized tax benefits is as follows:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Gross tax contingencies—December 31, 2018 | $ | 35,320  |  |
| Gross additions based on tax positions related to the current year | 2,914  |  |
| Gross additions for tax positions of prior years | 1,271  |  |
| Gross reductions for tax positions of prior years | (299) |  |
| Lapses of statutes | (4,034) |  |
| Settlements | (104) |  |
| Gross tax contingencies—December 31, 2019 | 35,068  |  |
| Gross additions based on tax positions related to the current year | 2,907  |  |
| Gross additions for tax positions of prior years | 80  |  |
| Gross reductions for tax positions of prior years | (5,617) |  |
| Lapses of statutes | (4,480) |  |
| Settlements | (1,989) |  |
| Gross tax contingencies—December 31, 2020 | 25,969  |  |
| Gross additions based on tax positions related to the current year | 3,893  |  |
| Gross additions for tax positions of prior years | 344  |  |
| Gross reductions for tax positions of prior years | (536) |  |
| Lapses of statutes | (1,663) |  |
| Settlements | (235) |  |
| Gross tax contingencies—December 31, 2021 | $ | 27,772  |  |

The reversal of these reserves of $27,772 as of December 31, 2021 will be recorded as a reduction of our income tax provision, if sustained. We believe that it is reasonably possible that an amount up to approximately $5,364 of our unrecognized tax positions may be recognized by the end of 2022 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions. 

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  | IRON MOUNTAIN 2021 FORM 10-K | 116 |


