INCOME TAXES

12 Months Ended

Dec. 31, 2021

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 4 - INCOME TAXES

The Company’s income tax (benefit) expense consisted of the following:

	2021		2020
Current:
Federal	$	420,109	$	37,373
State		15,324		(12,854	)
Deferred:
Federal		63,060		(67,742	)
State		11,313		(120,702	)
	$	509,806	$	(163,925	)

The actual tax (benefit) expense for 2021 and 2020 differs from the “expected” tax expense for those years (computed by applying the applicable United States federal corporate tax rate to income before income taxes) as follows:

	2021			2020
Computed “expected” (benefit) expense	$	813,312		$	(44,384	)
Permanent differences		(329,906	)		11,516
State and local income tax expense		34,493			2,720
True-up of current taxes		(51,039	)		(25,916	)
True-up of deferred taxes		34,392			11,644
Change in state apportionment		8,554			(119,505	)
Income tax (benefit) expense	$	509,806		$	(163,925	)

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets (liabilities) at December 31, 2021 and 2020 are as follows:

	2021			2020
Deferred tax assets:
Stock options	$	19,711		$	17,556
Accrued vacation		86,176			85,436
Bad debt allowance		6,576			6,411
Deferred revenue		2,161			4,732
Deferred rent		22,121			15,999
Other		6,982			17,212
Total deferred tax assets		143,727			147,346
Deferred tax liabilities:
Goodwill		(428,402	)		(417,688	)
Fixed assets		(123,130	)		(63,090	)
Total deferred tax liabilities		(551,532	)		(480,778	)
Net deferred tax liabilities	$	(407,805	)	$	(333,432	)