Entity information:
NOTE 12 – INCOME TAXES
 
The Company’s deferred tax assets and liabilities consist of the following:
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
 
 
Current Assets and Liabilities:
 
 
 
 
 
 
 
Provision for doubtful accounts
 
$
50,282
 
$
55,965
 
Vacation Accrual
 
 
5,337
 
 
6,832
 
Total
 
 
55,619
 
 
62,797
 
Valuation Allowance
 
 
-
 
 
-
 
Current Deferred Tax Asset, net
 
 
55,619
 
 
62,797
 
 
 
 
 
 
 
 
 
Noncurrent Assets and Liabilities:
 
 
 
 
 
 
 
Depreciation
 
 
37,744
 
 
35,577
 
Writedown of Goodwill
 
 
64,065
 
 
64,065
 
Total
 
 
101,809
 
 
99,642
 
Valuation Allowance
 
 
-
 
 
-
 
Noncurrent Deferred Tax Liability, net
 
$
101,809
 
$
99,642
 
 
 
 
 
 
 
 
 
Total Deferred Tax - Asset, net
 
$
157,428
 
$
162,439
 
 
The provisions for income taxes for the years ending December 31 consist of the following:
 
 
 
December 31,
 
 
 
2016
 
2015
 
Deferred tax expense (benefit)
 
$
5,011
 
$
(93,098)
 
Current provision
 
 
(8,621)
 
 
(35,740)
 
Total Provision for (Benefit of) Income Taxes
 
$
(3,610)
 
$
(128,568)
 
 
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax strategies in making this assessment.
 
The Company accounts for uncertain tax positions based upon authoritative guidance that prescribes a recognition and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return (ASC 740-10). The guidance also provides direction on derecognition and classification of interest and penalties.
 
Management has evaluated and concluded that there are no material uncertain tax positions requiring recognition in the financial statements for the year ended December 31, 2016.  The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling, general and administrative expenses.
 
The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes as follows:
  
 
 
2016
 
2015
 
 
 
Amount
 
Impact on Rate
 
Amount
 
Impact on Rate
 
Income tax at federal rate
 
$
(31,115)
 
 
35.00
%
$
(207,459)
 
 
35.00
%
State tax, net of Federal effect
 
 
(517)
 
 
.58
%
 
(34,675)
 
 
5.85
%
Total permanent differences
 
 
28,022
 
 
(31.52)
%
 
0
 
 
0.00
%
True-up of taxes payable
 
 
0
 
 
0
%
 
113,566
 
 
(19.16)
%
NOL deduction
 
 
0
 
 
0
%
 
0
 
 
0
%
Total tax credits
 
 
-
 
 
0.00
%
 
-
 
 
0.00
%
Valuation allowance
 
 
-
 
 
0.00
%
 
-
 
 
0.00
%
Total Provision
 
$
(3,610)
 
 
4.06
%
$
(128,568)
 
 
21.69
%