Income Taxes

6 Months Ended

Jun. 30, 2021

Notes

Income Taxes

5.  The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020.  The CARES Act allows for the carryback of any net operating loss arising in a tax year beginning after December 31, 2017 and before January 1, 2021, to each of the five tax years preceding the tax year in which the loss arises.  As a result, the Company’s effective tax rate was approximately 21.4% for the second quarter of 2021 compared to (29.2)% for the second quarter of 2020.  The Company’s effective tax rate was 21.6% and (29.7)% for the six months ended June 30, 2021 and 2020, respectively.

The Company’s federal income tax returns for the 2017 through 2020 tax years are subject to examination by the Internal Revenue Service (“IRS”).   While it may be possible that a reduction could occur with respect to the Company’s unrecognized tax benefits as an outcome of an IRS examination, management does not anticipate any adjustments that would result in a material change to the results of operations or financial condition of the Company.  No statutes have been extended on any of the Company’s federal income tax filings.  The statute of limitations on the Company’s 2017 through 2020 federal income tax returns will expire on September 15, 2021 through 2024, respectively.

The Company’s state income tax returns for the 2017 through 2020 tax years remain subject to examination by various state authorities with the latest closing period on October 31, 2024.  The Company is not currently under examination by any state authority for income tax purposes and no statutes for state income tax filings have been extended.