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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) from operations for the years ended December 31, 2021, 2020 and 2019 are as follows:
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 455 |  |  | $ | (174) |  |  | $ | 174 |
State | 493 |  |  | 741 |  |  | 366 |
| 948 |  |  | 567 |  |  | 540 |
Deferred: |  |  |  |  |
Federal | 2,142 |  |  | 1,027 |  |  | 882 |
State | 290 |  |  | 142 |  |  | 478 |
| 2,432 |  |  | 1,169 |  |  | 1,360 |
Total income tax expense | $ | 3,380 |  |  | $ | 1,736 |  |  | $ | 1,900 |
The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. The Texas margin tax is considered a state income tax and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as income tax, and therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $300, $468 and $458 were recorded in income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively. MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (“Taxable Subsidiary”). Prior to the acquisition of MTI on January 2, 2019, MTI was a QSub of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is not treated as a separate corporation for federal income tax purposes as it is deemed liquidated into its S Corporation parent. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. The principal component of the difference between the expected state tax expense and actual state tax expense relates to taxes incurred in states that do not recognize S corporation status. Subsequent to the acquisition, the QSub election terminated resulting in MTI being taxed as a stand-alone C Corporation. Total income tax expense relating to the operation of the Taxable Subsidiary of $3,080 and $1,268 was recorded in income tax expense for the years ended December 31, 2021 and 2020, respectively. The income tax expense from the Taxable Subsidiary operations for the years ended December 31, 2021 and 2020 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes of the Taxable Subsidiary) as follows:
| 2021 |  | 2020
"Expected" tax expense | $ | 2,223 |  |  | $ | 361 |
Increase in income taxes resulting from: |  |  |
State income taxes, net of federal income tax expense | 382 |  |  | 327 |
Other non-deductible items | 384 |  |  | 472 |
Other, net | 91 |  |  | 108 |
Actual tax expense | $ | 3,080 |  |  | $ | 1,268 |
Cash paid for income taxes was $1,232, $416 and $515 for the years ended December 31, 2021, 2020 and 2019, respectively. Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows:
| 2021 |  | 2020
Deferred tax assets: |  |  |
Bad debt reserves | $ | 26 |  |  | $ | 59 |
Goodwill and intangibles | 12,523 |  |  | 13,893 |
Employee benefits | 57 |  |  | 244 |
Interest expense | — |  |  | — |
Tax loss carryforwards | 10,676 |  |  | 12,671 |
Other | 129 |  |  | 251 |
Subtotal | 23,411 |  |  | 27,118 |
Less: Valuation allowance | — |  |  | — |
Total net deferred tax assets | 23,411 |  |  | 27,118 |
Deferred tax liabilities: |  |  |
Property and equipment | (3,590) |  |  | (4,861) |
Operating leases | — |  |  | (4) |
Other | — |  |  | — |
Total deferred tax liabilities | (3,590) |  |  | (4,865) |
Net deferred tax assets | $ | 19,821 |  |  | $ | 22,253 |
Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. On the basis of these considerations, as of December 31, 2021, management believes it is more likely than not that the Taxable Subsidiary will realize the benefit of the existing deferred tax assets. Federal income taxes refundable related to the operation of the Taxable Subsidiary of $70 and $0 for the years ended December 31, 2021 and 2020, respectively, are included in “Other current assets”."Income taxes payable" includes a state income tax liability related to the operation of the Partnership of $304 and $455 for the years ended December 31, 2021 and 2020, respectively. Also included in "Income taxes payable" are state income tax liabilities related to the operation of the Taxable Subsidiary of $81 and $101 for the years ended December 31, 2021 and 2020, respectively. At December 31, 2021, MTI had net operating loss carryforwards for income tax purposes of approximately $67,681 related to federal and state taxes. Of these net operating loss carryforwards, approximately $19,379 will expire between 2024 and 2041 and approximately $48,302 may be carried forward indefinitely. The operations of the Partnership are generally not subject to income taxes, except as discussed above, because its income is taxed directly to its partners. The net tax basis in the Partnership's assets and liabilities is greater (less) than the reported amounts on the financial statements by approximately $91,893 and $88,526 as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the tax years that remain open to assessment are 2018-2020.

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- 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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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