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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE M — INCOME TAXES Due to Milestone Scientific’s history of operating losses, a full valuation allowances has been provided for all of Milestone Scientific’s deferred tax assets at December 31, 2015 and 2014, no recognition was given to the utilization of the remaining net operating loss carryforwards. Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2015 and 2014 are as follows:
| 2015 |  |  | 2014 |
Current Assets |  |  |  |  |  |  |
Allowance for doubtful accounts-short term | $ | 2,000 |  |  | $ | 2,000 |
Warranty reserve |  | 43,000 |  |  |  | 12,000 |
Deferred officers compensation |  | 643,000 |  |  |  | 392,000 |
Subtotal |  | 688,000 |  |  |  | 406,000 |
Valuation allowance |  | (688,000 | ) |  |  | (406,000 | )
Non-current assets |  |  |  |  |  |  |
Depreciation and Amortization | $ | 149,000 |  |  | $ | - |
Net operating loss carryforward |  | 16,160,000 |  |  |  | 15,686,000 |
Federal tax effect of state deferred tax assets |  | (117,000 | ) |  |  |  |
Subtotal |  | 16,192,000 |  |  |  | 15,686,000 |
Valuation allowance |  | (16,192,000 | ) |  |  | (15,686,000 | )
As of December 31, 2015 and 2014, Milestone Scientific has federal net operating loss carryforwards of approximately $46,875,000 and $44,478,000, respectively that will be available to offset future taxable income, if any, through December 2032. Milestone Scientific has state net operating losses of $3,771,000 and $1,374,000 in 2015 and 2014, respectively, expiring through December 2035. The utilization of Milestone Scientific’s net operating losses may be subject to a substantial limitation due to the “change of ownership provisions” under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carry forwards before their utilization. Milestone Scientific has established a 100% valuation allowance for all of its deferred tax assets due to uncertainty as to their future realization. For the year ended December 31, 2015 and 2014, state tax liability was approximately $62,000 and $27,000. Such expense was recognized in the accompanying consolidated financial statements as of December 31, 2015. Due to Milestone Scientific’s history of past operating losses, which required a full valuation allowances for all of Milestone Scientific’s deferred tax assets at December 31, 2015 and 2014, no recognition was given to the utilization of the remaining Federal and State net operating loss carryforwards A reconciliation of the statutory tax rates for the years ended December 31, is as follows:
| 2015 |  |  | 2014 |
Statutory rate |  | 34 | % |  |  | 34 | %
State income tax - all states |  | 6 | % |  |  | 6 | %
|  | 40 | % |  |  | 40 | %
Current year valuation allowance |  | (40 | %) |  |  | (40 | %)
Benefit for income taxes |  | 0 | % |  |  | 0 | %
Accounting for Uncertain Tax Positions: Milestone Scientific follows the Income Taxes Topic of the FASB Accounting Standards Codification, which provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The guidance 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, disclosure and transition. At December 31, 2015, and 2014, we had no uncertain tax positions that required recognition in the consolidated financial statements. Milestone Scientific’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Statements of Operations. No interest and penalties are present for periods open. Tax returns for the 2012, 2013, and 2014 years are subject to audit by federal and state jurisdictions.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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