7. Income Taxes

The following summarizes our income tax provision on the loss from continuing operations (in thousands):


	Three Months Ended March 31,
	2014		2013
Total current income tax provision	$	(1,268)	$	(838)
Total deferred income tax provision		(9,404)		(1,977)
Income tax provision	$	(10,672)	$	(2,815)

At March 31, 2014, income taxes receivable on our condensed consolidated balance sheet includes an anticipated benefit of $12.6 million from the carryback of our tax loss from 2013 against taxes previously paid for 2012. We expect to receive this benefit in 2014.

Subsequent to the Sale, to the extent that profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, we would generate sufficient taxable income from the appreciated value of our Telesat investment, which currently has a nominal tax basis, in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets.

The following summarizes amounts for uncertain tax positions (“UTPs”) included in our income tax provision (in thousands):


	Three Months Ended March 31,
	2014		2013
Current provision for UTPs	$	(319)	$	(447)
Deferred benefit for UTPs		101		139
Tax provision for UTPs	$	(218)	$	(308)

As of March 31, 2014, we had unrecognized tax benefits relating to UTPs of $80 million. Pursuant to the Purchase Agreement for the Sale, we are obligated to indemnify SS/L for taxes related to periods prior to the closing of the transaction. The Company recognizes potential accrued interest and penalties related to UTPs in income tax expense on a quarterly basis. As of March 31, 2014, we have accrued approximately $4.6 million and $9.0 million for the payment of potential tax-related interest and penalties, respectively.

With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2007. Earlier years related to certain foreign jurisdictions remain subject to examination. Various federal, state and foreign income tax returns are currently under examination. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carryforward. While we intend to contest any future tax assessments for uncertain tax positions, no assurance can be provided that we would ultimately prevail. During the next twelve months, the statute of limitations for assessment of additional tax will expire with regard to certain UTPs related to our federal income tax return filed for 2010 and state income tax returns filed for 2007 and 2009 potentially resulting in a $2.7 million reduction to our unrecognized tax benefits.

The following summarizes the changes to our liabilities for UTPs included in long-term liabilities in the condensed consolidated balance sheets (in thousands):


	Three Months Ended March 31,
	2014		2013
Liabilities for UTPs:
Opening balance — January 1	$	79,688	$	80,732
Current (benefit) provision for:
Unrecognized tax benefits		(38)		581
Potential additional interest		611		405
Potential penalty adjustment		(36)		27
Statute expirations		(219)		(566)
Ending balance	$	80,006	$	81,179

As of March 31, 2014, if our positions are sustained by the taxing authorities, the Company’s income tax provision from continuing operations would be reduced by approximately $37.1 million. Other than as described above, there were no significant changes to our uncertain tax positions during the three months ended March 31, 2014 and 2013, and we do not anticipate any other significant changes to our unrecognized tax benefits during the next twelve months.