Income Taxes

9 Months Ended

Sep. 30, 2021

Income Taxes

Income Taxes

Note 8 – Income Taxes

Uncertain Tax Positions

The Company is subject to the provisions of FASB ASC Topic 740-10 (“ASC 740-10”) and has analyzed its various federal and state filing positions. The Company believes that its income tax filing positions and deductions are documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740-10. The Company’s federal income tax returns are open for examination by taxing authorities for all tax years after December 31, 2016. The Company has elected to record related interest and penalties, if any, as income tax expense on the Consolidated Statements of Operations and Comprehensive Income. The Company has no material interest or penalties relating to income taxes recognized for the three and nine months ended September 30, 2021 and 2020.

Income Tax Expense

The Company recognized total federal and state tax expense of approximately $0.4 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively. The Company recognized total federal and state tax expense of approximately $1.9 million and $0.8 million for the nine months ended September 30, 2021 and 2020, respectively. The income tax expense recorded in 2021 includes additional tax expense of approximately $0.5 million relating to 2020 operations, recognized upon filing of the annual tax returns during the three months ended March 31, 2021.