XML 31 R17.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes consists of:
| As of December 31,
| 2020 |  | 2019 |  | 2018
Current federal income tax provision | $ | 9,633,927 |  |  | $ | 13,952,230 |  |  | $ | 15,731,258 |
Current state and local income tax provision | 2,374,534 |  |  | 3,656,997 |  |  | 8,560,479 |
Deferred income tax expense (benefit) | 1,949,407 |  |  | 1,079,247 |  |  | (5,622,396) |
Provision for income taxes | $ | 13,957,868 |  |  | $ | 18,688,474 |  |  | $ | 18,669,341 |
A reconciliation of income tax expense at the statutory federal rate to the Company’s income tax expense is as follows:
| 2020 |  | 2019 |  | 2018
Income tax computed at statutory rate | $ | 10,945,831 |  |  | $ | 16,472,987 |  |  | $ | 13,646,583 |
Expense (benefit) attributable to redeemable noncontrolling interests(a) | 104,035 |  |  | (1,007,012) |  |  | 222,624 |
State and local income taxes, net of federal benefit | 1,875,882 |  |  | 2,835,215 |  |  | 2,993,730 |
Internal revenue code section 162 limitations | 632,705 |  |  | 625,009 |  |  | 400,060 |
Change in uncertain state and local tax positions, net of federal benefit | — |  |  | (47,197) |  |  | 2,982,337 |
Revaluation adjustment of net deferred tax assets(b) | — |  |  | — |  |  | (917,288) |
Excess tax deficit (benefit) on vesting of restricted stock | 612,930 |  |  | (70,878) |  |  | (667,697) |
Income tax benefit from dividends paid on restricted stock | (455,283) |  |  | (431,192) |  |  | (340,200) |
Interest and penalties | 1,460 |  |  | 101,010 |  |  | 786,711 |
Other | 240,308 |  |  | 210,532 |  |  | (437,519) |
Income tax expense | $ | 13,957,868 |  |  | $ | 18,688,474 |  |  | $ | 18,669,341 |
(a) The provision for income taxes includes expense (benefit) attributable to the fact that the Company’s operations include the Consolidated Funds, which are not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels. (b) The provision for income taxes for 2018 includes the remeasurement of our net deferred tax assets of $0.9 million due to additional state and local tax that the Company expects to pay in future tax periods. Deferred income taxes and benefits arise from temporary differences between taxable income for financial statement and income tax return purposes. Net deferred tax assets consisted of the following as of December 31, 2020 and 2019:
| 2020 |  | 2019
Stock-based compensation | $ | 3,500,026 |  |  | $ | 4,571,430 |
Accrued compensation | 9,026,113 |  |  | 8,496,929 |
Unrealized gains | (3,145,177) |  |  | (2,150,699) |
Property and equipment | (963,610) |  |  | (553,265) |
Other assets and liabilities | 20,094 |  |  | 22,458 |
Net deferred tax assets | $ | 8,437,446 |  |  | $ | 10,386,853 |
The net temporary differences incurred to date will reverse in future periods as the Company generates taxable earnings. The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets recorded. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2020, no valuation allowance was deemed necessary. FASB ASC 740, Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes tax benefits related to positions taken, or expected to be taken, on its tax returns, only if the positions are "more-likely-than-not" sustainable. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements. The Company and its subsidiaries file income tax returns with the Internal Revenue Service and the taxing authorities of various states. Generally, the Company is subject to federal, state, and local examinations by tax authorities for the tax years ended December 31, 2016 through 2020. During 2020, the Company closed an examination by the California Franchise Tax Board for the Company’s 2015 and 2016 tax years. During 2019, the Company closed an examination with the New York State Department of Finance and Taxation for tax years 2014 through 2016. During 2018, the Company reassessed its New York City filing positions and filed a Voluntary Disclosure Agreement with the New York City Department of Finance. The amount of uncertain tax positions as of December 31, 2020, 2019, and 2018, respectively, which would impact the Company’s effective tax rate if recognized and a reconciliation of the beginning and ending amounts of uncertain tax positions is as follows:
| 2020 |  | 2019 |  | 2018
Uncertain tax positions, beginning of the year | $ | — |  |  | $ | 2,982,337 |  |  | $ | — |
Gross addition for tax positions of the current year | — |  |  | — |  |  | — |
Gross additions for tax positions of prior years | — |  |  | — |  |  | 2,982,337 |
Reductions of tax positions of prior years for: |  |  |  |  |
Lapses of applicable statutes of limitations | — |  |  | — |  |  | — |
Settlements during the period | — |  |  | (2,935,140) |  |  | — |
Changes in judgment/excess reserve | — |  |  | (47,197) |  |  | — |
Uncertain tax positions, end of year | $ | — |  |  | $ | — |  |  | $ | 2,982,337 |
In addition to the above uncertain tax positions, the Company recognized $0.1 million and $0.8 million of interest and penalties in the years ended December 31, 2019 and 2018, respectively.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration