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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) from operations for the years ended December 31, 2022, 2021 and 2020 are as follows:
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 1,179 |  |  | $ | 455 |  |  | $ | (174) |
State | 1,004 |  |  | 493 |  |  | 741 |
| 2,183 |  |  | 948 |  |  | 567 |
Deferred: |  |  |  |  |
Federal | 4,815 |  |  | 2,142 |  |  | 1,027 |
State | 929 |  |  | 290 |  |  | 142 |
| 5,744 |  |  | 2,432 |  |  | 1,169 |
Total income tax expense | $ | 7,927 |  |  | $ | 3,380 |  |  | $ | 1,736 |
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 $496, $300 and $468 were recorded in income tax expense for the years ended December 31, 2022, 2021 and 2020, respectively. Total income tax expense relating to the operation of MTI, a wholly owned C-Corporation subsidiary of the Partnership (“Taxable Subsidiary”), of $7,431, $3,080 and $1,268 was recorded in income tax expense for the years ended December 31, 2022, 2021 and 2020, respectively. The income tax expense from the Taxable Subsidiary operations for the years ended December 31, 2022, 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:
| 2022 |  | 2021 |  | 2020
"Expected" tax expense | $ | 6,702 |  |  | $ | 2,223 |  |  | $ | 361 |
Increase in income taxes resulting from: |  |  |  |  |
State income taxes, net of federal income tax expense | 1,135 |  |  | 382 |  |  | 327 |
Other non-deductible (non-taxable) items | (86) |  |  | 384 |  |  | 472 |
Other, net | (320) |  |  | 91 |  |  | 108 |
Actual tax expense | $ | 7,431 |  |  | $ | 3,080 |  |  | $ | 1,268 |
Cash paid for income taxes was $2,250, $1,232 and $416 for the years ended December 31, 2022, 2021 and 2020, 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, 2022 and 2021 are as follows:
| 2022 |  | 2021
Deferred tax assets: |  |  |
Bad debt reserves | $ | 49 |  |  | $ | 26 |
Goodwill and intangibles | 11,711 |  |  | 12,523 |
Employee benefits | 6 |  |  | 57 |
Operating leases | 14 |  |  | — |
Tax loss carryforwards | 5,432 |  |  | 10,676 |
Other | 130 |  |  | 129 |
Subtotal | 17,342 |  |  | 23,411 |
Less: Valuation allowance | — |  |  | — |
Total net deferred tax assets | 17,342 |  |  | 23,411 |
Deferred tax liabilities: |  |  |
Property and equipment | (2,956) |  |  | (3,590) |
Total deferred tax liabilities | (2,956) |  |  | (3,590) |
Net deferred tax assets | $ | 14,386 |  |  | $ | 19,821 |
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, 2022, 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 $374 and $70 for the years ended December 31, 2022 and 2021, respectively, are included in “Other current assets”. "Income taxes payable" includes a state income tax liability related to the operation of the Partnership of $451 and $304 for the years ended December 31, 2022 and 2021, respectively. Also included in "Income taxes payable" are state income tax liabilities related to the operation of the Taxable Subsidiary of $214 and $81 for the years ended December 31, 2022 and 2021, respectively. At December 31, 2022, MTI had net operating loss carryforwards for income tax purposes of approximately $33,169 related to federal and state taxes. Of these net operating loss carryforwards, approximately $9,001 will expire between 2024 and 2041 and approximately $24,168 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 $112,841 and $91,893 as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the tax years that remain open to assessment are 2019-2021.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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