INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of income tax provision (benefit)

The income tax provision (benefit) consists of the following for the years ended December 31:

	2018		2017
Current tax expense	$	214,000	$	78,000
Deferred tax (benefit)		39,000		(244,000	)
Total income tax expense (benefit)	$	253,000	$	(166,000	)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between expected federal income tax rates and the Company’s effective federal tax rates is as follows: 

	2018						2017
	Amount			Percent			Amount			Percent
Expected federal tax	$	161,300			21.0	%	$	141,800			34.0	%
Permanent differences		9,100			1.2	%		14,500			3.5	%
State income tax, net of federal tax benefit		30,900			4.0	%		11,300			2.7	%
Foreign tax credit		(3,100	)		(0.4	)%		0			0.0	%
Other		54,800			7.1	%		(12,600	)		(3.0	)%
Tax law change		0			0.0	%		(321,000	)		(77.0	)%
Total	$	253,000			32.9	%	$	(166,000	)		(39.8	)%

Schedule of deferred tax assets and liabilities

The following table summarizes the Company’s deferred tax assets and liabilities at December 31:

	2018			2017
Current deferred tax asset (liabilities):
Accounts payable and accrued expenses	$	82,000		$	54,000
Accounts receivable		(1,026,000	)		(1,127,000	)
Allowance for doubtful accounts		46,000			44,000
Prepaid expenses		(75,000	)		(110,000	)
Deferred revenue		376,000			554,000
Net current deferred tax liability		(597,000	)		(585,000	)
Long-term deferred tax asset:
NOL - State		4,000			24,000
Foreign tax credit		38,000			52,000
Book - Tax depreciation		0			(7,000	)
Net long-term deferred tax asset		42,000			69,000
Net deferred tax liability	$	(555,000	)	$	(516,000	)