|3 Months Ended|
Mar. 31, 2020
|Income Tax Disclosure [Abstract]|
The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes.
Income tax expenses were $14,000 and $39,000 for continuing operations for the three months ended March 31, 2020 and the corresponding period of 2019, respectively. The Company’s effective tax rate was approximately 1.0% and 7.6% for the three months ended March 31, 2020 and the corresponding period of 2019, respectively. The tax expense for the quarter ended 2020 and 2019 was comprised of state tax expense for separate company filing states. The Company’s tax rate for each of the periods discussed above was impacted by the Company’s full valuation on its net deferred tax assets.
The CARES Act, among other things, includes modifications to net operating loss carryforwards and AMT provisions. At this time, the Company is not expecting any effects to its tax provisions from the CARES Act. However, the Company will continue to monitor for any potential impact to its tax provisions from the CARES Act.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef