Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 6 - INCOME TAXES

As of December 31, 2019, the Company had net operating loss carry forwards of approximately $1,654,000, available to the Company indefinitely and up to 80% of the operating loss can be used against future taxable income.

As of  June 30, 2020, the Company had $186,022 net operating loss carry forward available to the Company.

On March 27, 2020, the CARES Act was enacted into law. The CARES Act is a tax and spending package intended to provide economic relief to address the impact of the COVID-19 pandemic. The CARES Act includes several significant income and other business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (“NOLs”) and allow businesses to carry back NOLs arising in 2018, 2019, and 2020 to the five prior tax years. The Company was able to carryback the NOL to 2017 tax years and generate an estimated refund of previously paid income taxes at an approximate 34% federal tax rate. This resulted in a net benefit of $573,685 which has been recorded in the first quarter 2020.

The Company has recorded a further net benefit of $210,253 in the second quarter 2020. For the six months ended June 30, 2020 the Company has recorded $783,938 in net tax benefits.

The effective tax rate as of June 30, 2020 was 38.5% and 3.3% as of June 30, 2019 and the statutory tax rate was 25.3% in 2020 and 24.5% in 2019.

The income tax (benefit) for the three months ended June 30, 2020 and 2019 consists of:

	2020			2019
Current:
Federal	$	(60,828	)	$	-
State		840			-
Deferred:
Federal		(150,378	)		-
State		113			-
Income Tax (Benefit)	$	(210,253	)	$	-

The income tax (benefit) for the six months ended June 30, 2020 and 2019 consists of:

	2020			2019
Current:
Federal	$	(806,800	)	$	-
State		840			-
Deferred:
Federal		17,160			(11,340	)
State		4,862			(660	)
Income Tax (Benefit)	$	(783,938	)	$	(12,000	)