Taxes

12 Months Ended

Dec. 31, 2021

Taxes [Abstract]

Taxes

Note H – Taxes

The components of the provision for income taxes are as follows:

	Years Ended December 31,
	2021		2020
	(As Restated)
Current taxes:
Federal	$	228,000	$	211,000
State		192,000		95,000
Current taxes		420,000		306,000
Deferred taxes:
Federal	$	-	$	12,000
State		-		5,000
Deferred taxes		-		17,000
Income tax provision	$	420,000	$	323,000

A reconciliation of the tax provision calculated at the statutory federal income tax rate with amounts reported follows:

	Year Ended December 31,
	2021			2020
	(As Restated)
Income tax at the federal statutory rate	$	(130,000	)	$	180,000
State income tax, net of federal taxes		(106,000	)		52,000
Permanent differences and other		(67,000	)		16,000
Change in estimated effective state tax rate		2,000			(4,000	)
Change in valuation allowance		721,000			79,000
Income tax provision	$	420,000		$	323,000

Items which give rise to deferred tax assets and liabilities are as follows:

	December 31,
	2021			2020
Deferred tax asset:	(As Restated)
Basis differences in unconsolidated entities, including advances and loans to those entities	$	587,000		$	561,000
Excess of book depreciation over tax depreciation		-			192,000
Net intangible assets and other capitalized costs		102,000			-
Net operating loss		66,000			34,000
Net effect of conversion from the accrual basis of accounting to the cash basis of accounting for tax purposes primarily related to accounts receivable, prepaid expense, deferred revenue, and accounts payable		45,000			-
Valuation allowance		(800,000	)		(79,000	)
		-			708,000
Deferred tax liability:
Deferred gain on disposal of gamma knife		-			(634,000	)
Net effect of conversion from the accrual basis of accounting to the cash basis of accounting for tax purposes primarily related to accounts receivable, prepaid expense, deferred revenue, and accounts payable		-			(74,000	)
Net deferred tax asset	$	-		$	-

The Company files income tax returns in the U.S. federal jurisdiction, the State of Maryland, the State of Florida , the State of California, and the State of New York.  With few possible exceptions, the Company is no longer subject to U.S. or state income tax examinations by tax authorities for years before 2018.

As further described in Note L, management has restated the Company's 2021 Consolidated Financial Statements to record an additional tax liability as a result of the gain realized on the disposition of the Company's business at the New York University Medical Center.