Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 15 – INCOME TAXES

The Company’s net deferred tax assets are as follows:

 

 

December 31,

 

Deferred Tax Assets

 

2020

 

 

2019

 

Net Operating Loss Carryforward

 

$

56,788

 

 

$

30,485

 

Startup/Organization Expenses

 

 

177

 

 

 

163

 

Investment in Partnership

 

 

70,300

 

 

 

19,489

 

Interest Expense

 

 

1,652

 

 

 

911

 

Attributes/Other

 

 

137

 

 

 

186

 

Total Deferred Tax Assets

 

 

129,054

 

 

 

51,234

 

Less Valuation Allowance

 

 

(129,054

)

 

 

(51,234

)

Total Deferred Tax Assets, net

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

Deferred Tax Liabilities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net Deferred Tax Assets

 

$

-

 

 

$

-

 

 

The income tax provision consists of the following:

 

 

Years ended December 31,

 

Current

 

2020

 

 

2019

 

Federal

 

$

(757

)

 

$

-

 

State

 

 

(67

)

 

 

(77

)

Total Current

 

 

(824

)

 

 

(77

)

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

 

 

Federal

 

 

-

 

 

 

-

 

State

 

 

-

 

 

 

-

 

Total Deferred

 

 

-

 

 

 

-

 

Total

 

$

(824

)

 

$

(77

)

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2020 is as follows:

 

Pre-tax book loss

 

$

247,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Provision (Benefit)

 

 

(51,983

)

 

 

-21.00

%

Noncontrolling Interest

 

 

(13,039

)

 

 

-5.27

%

Permanent Differences

 

 

1,755

 

 

 

0.71

%

State Income Taxes, net of Federal Benefit

 

 

(53

)

 

 

-0.02

%

NOL Carryback, effect of rate change

 

 

(289

)

 

 

-0.12

%

Return to Provision, Other

 

 

682

 

 

 

0.28

%

Valuation Allowance

 

 

62,103

 

 

 

25.09

%

Total Provision (Benefit)

 

$

(824

)

 

 

-0.33

%

As of December 31, 2020, the Company had total U.S. federal net operating loss ("NOL") carryforwards of $240,331 and state NOLs of $277,173 available to offset future taxable income. $28,387 of the federal NOLs would begin to expire in 2036 if unused.  Federal NOLs generated after December 31, 2017 do not expire and the state rules vary by state.  After consideration of all the information available, management has established a valuation allowance against the deferred tax assets of the Company's tax loss carryforwards to the extent it is not more likely than not they will be realized. As of December 31, 2020, the valuation allowance totaled $129,054.

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.  Management considers the positive and negative evidence with respect to sources of taxable income for purposes of determining the realization of deferred tax assets.  In accordance with Section 382 of the Internal Revenue Code, deductibility of the Company’s NOLs may be subject to an annual limitation in the event of a change in control as defined under the regulations.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions and is subject to examination by the taxing authorities.

We follow guidance issued by the Financial Accounting Standards Board (“FASB”) in accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the consolidated financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the consolidated financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

We have considered our exposure under the standard at both the federal and state tax levels.  We did not record any liabilities for uncertain tax positions as of December 31, 2020 or December 31, 2019. We record income tax-related interest and penalties,

if any, as a component of income tax expense. We did not incur any material interest or penalties on income taxes.