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Income Taxes
6 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

9.

INCOME TAXES:

We account for income taxes in accordance with FASB Accounting Standards Codification 740, “Income Taxes” (“ASC 740”). Under ASC 740, we recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled. Due to the uncertainties caused by the COVID-19 pandemic, we cannot reliably estimate the overall annual effective tax rate in the current reporting period and as such have used the actual effective tax rate for the six months ended March 31, 2020 to account for income taxes.

  We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized by considering all available positive and negative evidence.  As of September 30, 2019 and March 31, 2020, we had a valuation allowance on our deferred tax assets of $164,000.

 

During the three months ended March 31, 2019 and 2020 we recognized an income tax provision of $1.9 million and $1.6 million, respectively. During the six months ended March 31, 2019 and 2020 we recognized an income tax provision of $3.5 million and $4.9 million, respectively. The effective income tax rate for the three months ended March 31, 2019 and 2020 was 26.3% and 24.4%, respectively. The effective income tax rate for the six months ended March 31, 2019 and 2020 was 25.3% and 25.6%, respectively.