Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.22.2.2
Income Taxes
 12 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12. Income Taxes

On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act contains significant changes to corporate taxes, including a permanent reduction of the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The 21% U.S. corporate tax rate is fully applicable to the fiscal year ended September 30, 2019 and each year thereafter.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748) (the “CARES Act”). Among the changes to the U.S. federal income tax rules, the CARES Act restored net operating loss carryback rules that were eliminated by the 2017 Tax Cuts and Jobs Act, modified the limit on the deduction for net interest expense, and accelerated the timeframe for refunds of AMT credit carryovers. From a federal tax reporting standpoint, the Company had a federal tax net operating loss (“NOL”) in the amount of $2,390,415 for the fiscal year ended September 30, 2020 and, pursuant to the provisions of the CARES Act, Form 1139 was filed for the NOL carryback during fiscal year ended September 30, 2021, resulting in a refund due of $580,314.

In October 2019, the Internal Revenue Service concluded their audit of the September 30, 2015 tax year with no changes. The Federal and State filings remain subject to examination by tax authorities for tax periods ending after September 30, 2017.

The income tax provision for the years ended September 30, 2022, 2021 and 2020 consists of the following:

 

(in thousands)

 

Fiscal Year Ended September 30,

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

Federal income tax

 

$

3,884

 

 

$

7,347

 

 

$

131

 

State income tax

 

 

1,061

 

 

 

1,971

 

 

 

(71

)

Total current

 

 

4,945

 

 

 

9,318

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal income tax

 

 

(5,943

)

 

 

2,144

 

 

 

6,151

 

State income tax

 

 

(2,242

)

 

 

105

 

 

 

1,452

 

Valuation allowance

 

 

4,309

 

 

 

—

 

 

 

—

 

Total deferred

 

 

(3,876

)

 

 

2,249

 

 

 

7,603

 

Income tax provision

 

$

1,069

 

 

$

11,567

 

 

$

7,663

 

 

Income tax provision attributable to income before income taxes differed from the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes for each of the fiscal years ended September 30, 2022, September 30, 2021 and September 30, 2020, respectively, as a result of the following:

 

(in thousands)

 

Fiscal Year Ended September 30,

 

 

 

2022

 

 

2021

 

 

2020

 

Income tax at the statutory federal rate

 

$

2,560

 

 

$

9,741

 

 

$

6,568

 

Increase (decrease) resulting from:

 

 

 

 

 

 

 

 

 

State income taxes, net of federal benefit

 

 

120

 

 

 

1,645

 

 

 

1,217

 

Permanent and other reconciling items, net

 

 

44

 

 

 

41

 

 

 

170

 

State rate change

 

 

—

 

 

 

—

 

 

 

(156

)

Land Donation – Bargain Sale

 

 

(6,279

)

 

 

—

 

 

 

—

 

Valuation allowance

 

 

4,309

 

 

 

—

 

 

 

—

 

Other

 

 

315

 

 

 

140

 

 

 

(136

)

Income tax provision

 

$

1,069

 

 

$

11,567

 

 

$

7,663

 

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2022, and 2021 are presented below:

 

(in thousands)

 

September 30,

 

 

 

 

 

 

2021

 

 

 

2022

 

 

Restated

 

Deferred tax assets:

 

 

 

 

 

 

Goodwill

 

$

12,623

 

 

$

14,463

 

Inventories

 

 

5,577

 

 

 

744

 

Stock compensation

 

 

198

 

 

 

212

 

Intangibles

 

 

399

 

 

 

454

 

Charitable contribution carryforward

 

 

5,776

 

 

 

146

 

Other

 

 

108

 

 

 

—

 

Total deferred tax assets

 

 

24,681

 

 

 

16,019

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Property and equipment

 

 

55,007

 

 

 

54,330

 

Investment in Citree

 

 

740

 

 

 

968

 

Prepaid insurance

 

 

214

 

 

 

186

 

Total deferred tax liabilities

 

 

55,961

 

 

 

55,484

 

Valuation allowance

 

 

4,309

 

 

 

—

 

Net deferred income tax liabilities

 

$

(35,589

)

 

$

(39,465

)