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Income Taxes
 3 Months Ended
Apr. 30, 2020
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 11. Income Taxes


The Company determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate. Thus, the Company used a discrete effective tax rate method to calculate the provision or benefit for income taxes for the three months ended April 30, 2020 and 2019.


The Company’s income tax benefit was approximately 38.7% and approximately 2,124.6% for the three months ended April 30, 2020 and 2019, respectively. The fluctuation in the rate results primarily from the production tax credits the Company expects to receive associated with its refined coal segment relative to consolidated pre-tax income or loss. Through its refined coal operation, the Company earns production tax credits pursuant to IRC Section 45. The credits can be used to reduce future income tax liabilities for up to 20 years. The Company’s income tax benefit for the first quarter of fiscal year 2020 includes approximately $1.4 million related to the lengthening of a net operating loss carryback allowed by the recently passed CARES Act.


The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2014 and prior. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):


   Three Months Ended
April 30,
   2020  2019
       
Unrecognized tax benefits, beginning of period  $7,370   $9,232 
Changes for prior years’ tax positions   1    66 
Changes for current year tax positions   -    138 
Unrecognized tax benefits, end of period  $7,371   $9,436