Note 9 - Income Taxes

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9

.   INCOME TAXES

Components of tax expense (benefit) are as follows:

	Year Ended March 31,
	2021		2020
Federal
Current	$	1,904,797	$	(408,360	)
Deferred		1,100,368		(971,540	)
		3,005,165		(1,379,900	)
State
Current		554,212		3,468
Deferred		238,121		(212,560	)
		792,333		(209,092	)
Total	$	3,797,498	$	(1,588,992	)

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

	Year Ended March 31,
	2021			2020
Income tax expense (benefit) at U.S. federal statutory rate		21.0	%		(21.0	)%
Current year state and local income taxes net of federal income tax benefit		4.1			(2.4	)
Other		(0.1	)		0.2
Provision for (benefit from) income taxes		25.0	%		(23.2	)%

The Company's tax returns

may

be subject to examination by the Internal Revenue Service for the fiscal years ended

March 

31,

2018

 through

March 

31,

2020.

State and local returns

may

be subject to examination for fiscal years ended

March 

31,

2017

 through

March 

31,

2020.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's consolidated deferred tax assets (liabilities) are as follows:

	March 31,
	2021			2020
Deferred tax liabilities:
Depreciation	$	(1,945,788	)	$	(128,868	)
LIFO to average cost Section 481(a) adjustment		(301,110	)		(602,220	)
Total deferred tax liabilities		(2,246,898	)		(731,088	)
Deferred tax assets:
Unrealized derivative loss - OCI		3,564,059			—
Inventory capitalization		63,468			85,137
Postretirement benefits other than pensions		26,240			24,127
Net operating loss carryforward - State		—			15,012
Restricted stock award compensation		328,434			200,949
Other		129,121			44,717
Total deferred tax assets		4,111,322			369,942
Net deferred tax asset (liability)	$	1,864,424		$	(361,146	)