(9) Income Taxes

12 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

(9) Income Taxes

The components of the provision (benefit) for income taxes from continuing operations for the years ended March 31, 2013 and 2012 are as follows:

	2013		2012
Current:
State and local	$	158,000	$	138,000
Federal		70,333		72,000
		228,333		210,000
Deferred:
State and local		171,501		257,017
Federal		1,420,753		1,373,893
Change in valuation allowance		—		(3,413,936	)
		1,592,254		(1,783,026	)
	$	1,820,587	$	(1,573,026	)

The differences between the provision (benefit) for income taxes from continuing operations computed at the federal statutory rate and the reported amount of tax expense attributable to income from continuing operations before provision (benefit) for income taxes for the years ended March 31, 2013 and 2012 are as follows:

	2013			2012
Statutory federal income tax		34.0	%		34.0	%
State and local taxes, net of federal benefit		9.1			6.3
Permanent differences		21.4			4.2
Alternative minimum tax		(6.3	)		3.6
Valuation allowance		—			(89.2	)
Other		1.8			—
Effective tax rate		60.0	%		(41.1	%)

The tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities that are included in the deferred tax assets and liability are as follows:

	2013			2012
Deferred tax assets  (liability):
Current:
Allowance for doubtful accounts	$	126,839		$	126,839
Accrued compensation		647,299			678,857
	$	774,138		$	805,696
Non-current:
Assets:
Depreciation on fixed assets	$	124,838		$	48,584
Amortization on intangible asset		407,464			321,682
Net operating loss carryforwards		1,169,280			2,455,533
Share-based payment arrangements		206,843			237,994
Other		504,075			282,081
	$	2,412,500		$	3,345,874
Liability:
Goodwill, principally due to differences in amortization	$	(2,995,866	)	$	(2,368,544	)
	$	(2,995,866	)	$	(2,368,544	)
Net deferred tax asset	$	190,772		$	1,783,026

At March 31, 2013, the Company had federal net operating loss carry-forwards of approximately $2,578,000 that begin to expire on March 31, 2029, as follows:

Fiscal Year End	Amount
2029	$	1,163,000
2030		1,415,000
	$	2,578,000

As of March 31, 2013 and 2012, the Company did not have any unrecognized tax benefit or open tax positions. It is the Company’s practice to include interest and penalties in tax expense. As of March 31, 2013 and 2012, the Company had no accrued interest or penalties related to income tax matters included in its provision for income taxes.

The Company currently has no federal or state tax examinations in progress and is no longer subject to federal and state income tax audits by taxing authorities for years prior to March 2010.