INCOME TAXES

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company used its respective estimates for its annual 2020 and 2019 incomes in computing its effective income tax rates for the three months ended March 31, 2020 and 2019. The effective tax rates for the three months ended March 31, 2020 and 2019, were 19.1% and 19.6%, respectively.

On March 27, 2020, H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act ("the CARES Act") was signed into legislation which includes tax provisions relevant to businesses. The Company is required to recognize the effect on the consolidated financial statements in the period the law was enacted, which is the period ended March 31, 2020. For the period ended March 31, 2020, the CARES Act was not material to the Company's consolidated financial statements; however, if we were to have a taxable loss for the year ended December 31, 2020, we would be able to carryback those losses to prior periods. At this time, the Company does not expect the impact of the CARES Act to be material to the Company's consolidated financial statements for the year ended December 31, 2020.

In April, 2019, the IRS proposed favorable and unfavorable adjustments to the Company’s 2014 through 2016 reported taxable income. The Company agreed to these adjustments. The resulting taxes have been settled, other than interest, the settlement of interest will not materially impact the Company or its effective tax rate.

Due to IRS adjustments to the Company's pre-2017 taxable income, the Company has amended certain of its 2014 through 2016 state income tax returns. Such amendments will cause such years to remain open, pending the states' acceptances of the returns.

In general, the Company is no longer subject to income tax examinations by taxing authorities for tax years that began before 2017.

There have been no changes to the balance of unrecognized tax benefits during the quarter ended March 31, 2020. The Company believes that in the next twelve months, none of the unrecognized tax benefits will be reduced.