General form of registration statement for all companies including face-amount certificate companies

Income Tax

v3.21.2
Income Tax
 10 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 9. INCOME TAX

The Company’s net deferred tax asset is as follows:

 

December 31,
2020

Deferred tax asset

  

 

  

 

Organizational costs/Startup expenses

  

$

94,822

 

Total deferred tax asset

  

 

94,822

 

Valuation allowance

  

 

(94,822

)

Deferred tax asset, net of allowance

  

$

—

 

The income tax provision consists of the following:

 

December 31,
2020

Federal

  

 

  

 

Current

  

$

11,509

 

Deferred

  

 

(94,822

)
   

 

  

 

State

  

 

  

 

Current

  

$

—

 

Deferred

  

 

—

 

Change in valuation allowance

  

 

94,822

 

Income tax provision

  

$

11,509

 

As of December 31, 2020, the Company did not have any U.S. federal and state net operating loss carryovers available to offset future taxable income.

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of 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 temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the period from March 6, 2020 (inception) through December 31, 2020, the change in the valuation allowance was $94,822.

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:

 

December 31,
2020

Statutory federal income tax rate

  

21.0

%

State taxes, net of federal tax benefit

  

0.0

%

Change in valuation allowance

  

(24.0

)%

Income tax provision

  

(3.0

)%

The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing authorities.