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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | 9. INCOME TAXES Reconciliation of the benefit for income taxes from continuing operations recorded in the consolidated statements of operations with the amounts computed at the statutory federal tax rates for each year:
|  | 2021 |  |  | 2020 |
Federal tax at statutory rate |  | $ | 852,198 |  |  | $ | 67,862 |
State tax, net of federal tax |  |  | (487,093 | ) |  |  | 29,866 |
Permanent differences |  |  | (259,967 | ) |  |  | 126,301 |
Change in statutory rate |  |  | 59,168 |  |  |  | (69,835 | )
Change in valuation allowance |  |  | 614,112 |  |  |  | 522,738 |
Other |  |  | 6,892 |  |  |  | (13,882 | )
Expense for income taxes |  | $ | 785,310 |  |  | $ | 663,050 |
Tax affected components of deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 were as follows:
|  | 2021 |  |  | 2020 |
Deferred tax assets (liabilities): |  |  |  |  |  |
Equity based compensation |  | $ | 479,956 |  |  | $ | 368,000 |
Allowance for doubtful accounts |  |  | 6,847,189 |  |  |  | 5,527,000 |
Fixed assets |  |  | (8,085,957 | ) |  |  | 256,000 |
Lease impairment |  |  | 423,022 |  |  |  | 587,000 |
Lease Liability |  |  | 481,312 |  |  |  | 526,000 |
Right of use asset |  |  | (383,924 | ) |  |  | (425,000 | )
Tax credit carryforward |  |  | 32,394 |  |  |  | 32,000 |
Federal loss carry-forwards |  |  | 11,838,840 |  |  |  | 4,779,000 |
State loss carry forward |  |  | 343,914 |  |  |  | 161,000 |
Other |  |  | (53,414 | ) |  |  | (6,000 | )
Gross deferred tax |  |  | 11,923,332 |  |  |  | 11,805,000 |
Valuation allowance |  |  | (12,418,498 | ) |  |  | (11,805,000 | )
Net deferred tax liability |  | $ | (495,166 | ) |  | $ | - |
Based on consideration of the available evidence, including historical losses, a valuation allowance has been recognized to offset certain deferred tax assets, as management was unable to conclude that realization of deferred tax assets were more likely than not. As of December 31, 2021, the Company has federal and state net operating loss carryforwards of approximately $56,375,431 and $4,878,909, respectively, available to offset future income. Our federal loss carryforwards do not expire. The components of income tax expense (benefits) for the years ended December 31, 2021 and 2020 were as follows:
|  | 2021 |  |  | 2020 |
Current Income Tax: |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | 290,144 |  |  |  | 663,050 |
Deferred Income Tax: |  |  |  |  |  |  |  |
Federal |  |  | 495,166 |  |  |  | - |
Sate |  |  | - |  |  |  | - |
|  | $ | 785,310 |  |  | $ | 663,050 |
The Company’s effective tax rate for the year ended December 31, 2021 and 2020 differs from the statutory rate of 21% primarily due to a valuation allowance applied against the Company’s net deferred tax assets. State taxes and permanent differences also impacted the effective tax rate. The Company accrued a $290,144 current state income tax expense for the year ended December 31, 2021 for certain states in which taxable income exceeded available net operating loss carryforwards. The Company files tax returns in the U.S. federal jurisdiction and various states. At December 31, 2021, federal tax returns remained open for Internal Revenue Service review for tax years after 2017, while state tax returns remain open for review by state taxing authorities for tax years after 2017. The IRS can examine net operating loss carryforwards from earlier years the extent utilized in years after 2017. During 2019, the Company was notified that its 2017 federal income tax return was selected for examination. In the second quarter of 2021, the IRS completed their review with no changes to the reported tax.. There were no other federal or state income tax audits being conducted as of December 31, 2021. The Company completed its analysis and review of all tax positions taken through December 31, 2021 and does not believe that there are any unrecognized tax benefits related to tax positions taken on its income tax returns.

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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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