Note 9 - Income Taxes
|12 Months Ended|
Dec. 31, 2016
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
Income tax provision (benefit) reported in the consolidated statements of operations is comprised of the following:
The following are the components of the Company’s net deferred taxes for federal and state income taxes:
2016,the Company has federal and state net operating losses of approximately
$24,948,000,respectively. These net operating losses are available to offset future taxable income and will begin to expire in
2035for federal purposes and
2020for state purposes.
The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net income (loss), compared to the income tax provision (benefit) in the consolidated statement of operations:
The state tax expense (benefit), penalties and interest stem from resolution of various voluntary disclosure agreements with multiple states where we had not yet been in compliance. In addition, we are responsible to pay certain minimum and franchise taxes to jurisdictions in which we do business.
Changes in our income tax expense related primarily to changes in pretax losses during the year ended
2016,as compared to year ended
2015,and the effective rate was
2.6%,respectively. The difference is due to a valuation allowance on the Company's deferred tax assets, and the impact of certain permanent differences on taxable income.
For the year ended
2015,the Company recorded a liability for income taxes for operations and uncertain tax positions of approximately
$66,000,respectively, of which
$33,000respectively, represent penalties and interest and are recorded in the “other liabilities” section of the accompanying consolidated balance sheets. Interest and penalties associated with tax positions are recorded in the period assessed as general and administrative expenses. Management made a determination that the Company was not in compliance with several state and local tax jurisdictions in which the company was doing business. Accordingly, management undertook to analyze its tax exposures, both income and otherwise, with respect to jurisdictions in which compliance was deemed to be inadequate and the Company has entered into Voluntary Disclosure Agreements (VDAs) with the taxing authorities.
The following table sets forth a reconciliation of the beginning and ending amount of uncertain tax positions during the tax years ended
Our tax returns for tax years subject to examination by tax authorities include
2012through the current period for state and
2013through the current period for federal reporting purposes.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef