Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | (10) Income Taxes Income tax provision attributable to income from continuing operations consists of:
The differences between income taxes as provided at the federal statutory tax rate of 21% and the Company’s actual income taxes are as follows:
Due to changes in the tax laws enacted in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, cumulative federal operating loss carryforwards (NOLs) of approximately $1,000,000 were carried back to prior periods resulting in income tax refunds of approximately $332,000 at October 31, 2020. For the period February 25 through October 31, 2021, the income tax return of the Company will be included in the consolidated income tax return of Avis. The Company is in the process of filing short-year income tax returns for the period November 1, 2020 through February 24, 2021 and is filing carryback claims for the same period to recover income taxes paid in prior periods of approximately $102,000. The Company has recorded cumulative federal and state income tax refunds due of approximately $434,000 at October 31, 2021. Deferred tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. The realization of deferred tax assets, with the exception of certain tax credits and state NOLs, will depend on the ability of Avis to generate taxable income in the future. Certain tax credits and state NOLs of approximately $92,300 were generated by the Company prior to the Avis ownership change and may be subject to Section 382 limitations, accordingly, the Company has recorded a valuation allowance related to these deferred tax assets. The Company determined it is more likely than not that the remaining deferred tax assets will be realized in the consolidated tax return of Avis. The significant components of the net deferred income taxes at October 31, 2021 and 2020 are as follows:
For the years ended October 31, 2021 and 2020, the Company did not have any unrecognized tax benefits or obligations as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. The evaluation was performed for the tax years which remain subject to examination by tax jurisdictions as of October 31, 2021. |