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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Taxes  
Income Taxes

9. Income Taxes

Income tax provisions for the three and six months ended June 30, 2023 and 2022 are as follows:

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Three months ended June 30, 

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Six months ended June 30, 

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2023

    

2022

    

2023

    

2022

Current:

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Federal

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$

86,279

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$

2,530,805

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$

1,046,787

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$

3,997,702

State

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(82,572)

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1,192,131

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295,950

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1,884,446

Total current income tax expense

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3,707

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3,722,936

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1,342,737

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5,882,148

Deferred:

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Federal

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395,326

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233,599

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378,048

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255,614

State

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(152,891)

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63,041

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(147,721)

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63,712

Total deferred tax expense

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242,435

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296,640

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230,327

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319,326

Income tax expense

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$

246,142

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$

4,019,576

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$

1,573,064

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$

6,201,474

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The Company files federal income tax returns in the United States and Canada, and various returns in state and local jurisdictions.

The Company believes it has no uncertain income tax positions. The Company's tax returns are open to audit under the statute of limitations for the years ending December 31, 2019 through December 31, 2022. To the extent we utilize net operating losses generated in earlier years, such earlier years may also be subject to audit.

Our effective tax rate will typically differ from the statutory federal rate primarily as a result of state income taxes and the valuation allowance against the Canadian net operating loss. The effective tax rate for the six months ended June 30, 2023 was higher than the statutory federal rate as a result of the state income taxes and the valuation allowance against the Canadian net operating loss.

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Starting in 2023, distributions of Epsilon Energy USA Inc. earnings to Epsilon Energy Ltd. are anticipated to incur a 5% U.S. dividend withholding tax, provided the Company is eligible for benefits under the U.S. / Canada income treaty.