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Income Taxes

9 Months Ended

Sep. 30, 2020

Note 6. Income Taxes

There is no provision for federal income taxes for the three and nine months ended September 30, 2020 and September 30, 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					Nine months ended
	September 30					September 30
	2020		2019			2020			2019
Current state taxes	$	9,900	$	21,100		$	15,200		$	91,800
Deferred state taxes		–		(6,800	)		(47,400	)		(61,200	)
	$	9,900	$	14,300		$	(32,200	)	$	30,600

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 September 30, 2020 and there was no accrual for uncertain tax positions as of September 30, 2020.

Tax years from 2017 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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