Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. INCOME TAXES

GAAP prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

In

December 2017,

the Tax Cuts and Jobs Act of

2017

(TCJA) was signed into law. In accordance with the TCJA, the Company eliminated

$91.3

million of AMT NOL carry forwards in

2018

and recognized

$5.0

million of income tax benefit from its unused AMT credit carry forwards. The Company received subsequent notices that refunds were applied by the U.S. Department of the Treasury toward a “Non-Tax Federal Debt.” The Company believes the refunds were misapplied in error and intends to pursue collection of the amount; however, the entire

$5.0

million income tax benefit from its unused AMT credit carry forwards has been written off against the valuation allowance in

2020

until further clarification on this matter is received.

Reconciliations between the total income tax benefit and the amount computed using the statutory federal rate of

21%

for the years ended

December 31, 2020

and

2019

were as follows:

	2020			2019
	(in thousands)
Federal income tax benefit at statutory rate	$	(547	)	$	(1,127	)
Adjusted for:
Valuation allowance		475			6,111
Permanent differences and other		72			15
Income tax expense	$	-		$	4,999

Deferred tax assets were comprised of the following temporary differences as of

December 31, 2020

and

2019:

	2020			2019
	(in thousands)
Net operating loss and tax credit carryforwards	$	24,956		$	29,545
Joint venture and other investments		(27	)		(27	)
Accrued retirement benefits		3,329			3,010
Property net book value		3,357			3,300
Deferred revenue		715			697
Reserves and other		29			(10	)
Total deferred tax assets		32,359			36,515
Valuation allowance		(32,359	)		(36,515	)
Net deferred tax assets	$	-		$	-

Valuation allowances have been established to reduce future tax benefits

not

expected to be realized. The change in the deferred tax asset related to accrued retirement benefits and the valuation allowance includes the pension adjustment included in accumulated other comprehensive loss, which is

not

included in the current provision. Net Operating Loss (NOL) carryforwards created in tax years beginning after

December 31, 2017

are limited by the TCJA. The Company had approximately

$71.7

 million in federal NOL carry forwards at

December 31, 2020,

that expire from

2029

through

2034.

The Company had approximately

$85.7

million in state NOL carry forwards at

December 31, 2020,

that expire from

2029

through

2034.

The Company had approximately

$5.2

million in federal and state NOL carry forwards at

December 31, 2020

that do

not

expire.