|12 Months Ended|
Sep. 30, 2019
|Income Tax Disclosure [Abstract]|
Note 14: Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Income tax expense for the years ended September 30, 2019 and 2018 is as follows:
A reconciliation of the differences between the effective and statutory income tax rates for years ended September 30, 2019 and 2018:
At September 30, 2019 and 2018, deferred income tax assets and liabilities were comprised of:
The Company has federal and state net operating loss carryforwards of approximately $21,300 and $11,300 respectively as of September 30, 2019. The federal net operating loss amounts are subject to IRS code section 382 limitations and expire in 2030. State net operating loss amounts begin to expire in 2019. Due to the Tax Act, the federal AMT tax credit carryforward is fully refundable in 2021 if not utilized before then. The 2015 through 2018 tax years are open to examination by the various federal and state jurisdictions.
The Company evaluates all available evidence to determine if a valuation allowance is needed to reduce its deferred tax assets. Management has concluded that it is more likely than not that a portion of its existing tax benefits will not be realized. Accordingly, the Company has recorded a valuation allowance of $729 at September 30, 2019 to reduce its deferred tax assets.
On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The legislation significantly revises the U.S. corporate income tax system by, among other things, lowering corporate income tax rates from 35% to 21%, introducing new limitations on interest expense, subjecting foreign earnings in excess of an allowable return to U.S. taxation, adopting a territorial tax regime and imposing a one-time transitional tax on deemed repatriated earnings of foreign subsidiaries. As a result of the enactment of the Tax Act, the Company’s deferred tax assets and liabilities were revalued at the lower federal income tax rate.
The Company annually conducts an analysis of its tax positions and has concluded that it has no uncertain tax positions as of September 30, 2019. The Company’s policy is to record uncertain tax positions as a component of income tax expense.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef