|12 Months Ended|
Dec. 31, 2021
|Income Tax Disclosure [Abstract]|
NOTE 17. INCOME TAXES
The components of the expense (benefit) for income taxes for the periods presented are as follows:
A reconciliation of the expected income tax expense at the statutory federal income tax rate of 21% for the years ended December 31, 2021, 2020 and 2019 to the Company’s actual income tax expense and effective tax rate for the periods presented is as follows:
During the years ended December 31, 2021, 2020, and 2019 no changes were made to the corporate tax rate.
Deferred income tax assets and liabilities reflect the tax effect of estimated temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the same items for income tax reporting purposes.
The significant components of the net deferred tax assets and liabilities for the periods presented are as follows:
The ability to realize deferred tax assets is dependent upon various factors, including the generation of future taxable income, the existence of taxes paid and recoverable, the reversal of deferred tax liabilities and tax planning strategies. Based upon these factors, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets.
During the year ended December 31, 2020, the Company decided to carry back certain net operating losses as allowed by the CARES Act, which was enacted on March 27, 2020. This resulted in recording a discrete income tax benefit in the amount of $575 thousand.
The Company did not have any uncertain tax positions at December 31, 2021. The Company did not record interest and penalties for the year ended December, 31, 2021 and 2020. The Company recorded interest and penalties of $23 thousand for the year ended December 31, 2019.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef