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Income Taxes

6 Months Ended

Jun. 30, 2020

Note 6. Income Taxes

There is no provision for federal income taxes for the three and six months ended June 30, 2020 and 2019 due to the availability of net operating loss carryforwards. Our Company has established a valuation allowance for the entire amount of benefits resulting from our Company’s net operating loss carryforwards because our Company has determined that the realization of the net deferred tax asset is not assured.

The components for state income tax expense resulting from the limitation on the use of net operating losses are:


	Three Months ended June 30				Six Months ended June 30
	2020		2019		2020			2019
Current state taxes	$	5,000	$	10,400	$	5,300		$	70,700
Deferred state taxes		–		–		(47,400	)		(54,400	)
	$	5,000	$	10,400	$	(42,100	)	$	16,300

During the first quarter of 2020, our Company reversed $47,400 of accrued Pennsylvania income taxes that are not payable.

There was no change in unrecognized tax benefits during the period ended June 30, 2020 and there was no accrual for uncertain tax positions as of June 30, 2020.

Tax years from 2016 through 2019 remain subject to examination by U.S. federal and state jurisdictions.

- Definition

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.

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