Annual report pursuant to Section 13 and 15(d)

Income Tax

v3.21.1
Income Tax
 10 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 8. 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.