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INCOME TAXES	3 Months Ended
Mar. 31, 2021
INCOME TAXES
INCOME TAXES	12. INCOME TAXES Our unrecognized tax benefits as of March 31, 2021 and December 31, 2020 were $4.9 million. The net amount of unrecognized tax benefits that, if recognized, would result in an impact to the effective tax rate is $4.7 million as of March 31, 2021 and December 31, 2020. We do not expect any material change in our unrecognized tax benefits during the remainder of 2021. Our practice is to recognize interest and penalties related to income tax matters in interest expense and selling, general and administrative expenses, respectively. As of March 31, 2021, we did not have a material liability for interest or penalties and had no material interest or penalty expense. The periods subject to examination for our federal return are years 2017 through 2019. The periods subject to examination for our state returns are years 2016 through 2019. In addition, prior tax years may be subject to examination by federal or state taxing authorities if the Company’s net operating loss carryovers from those prior years are utilized in the future. We are currently under examination by state taxing authorities. We do not expect any settlement or payment that may result from the examination to have a material effect on our results or cash flows. Our effective tax rate was 7.9% and 24.4% for the quarters ended March 31, 2021 and 2020, respectively. The effective tax rate differed from the federal and state statutory rates primarily due to various permanent income tax differences related to the Searchlight transaction, other various permanent differences, and differences in allocable income for the Company’s state tax filings. Exclusive of these adjustments, our effective tax rate for the quarters ended March 31, 2021 and 2020 would have been approximately 26.0% and 24.4%, respectively. As of March 31, 2021, the American Rescue Plan did not have a material impact on the Company's income tax positions. We will continue to evaluate the impact of enacted and future legislation.

INCOME TAXES

3 Months Ended

Mar. 31, 2021

12. INCOME TAXES

Our unrecognized tax benefits as of March 31, 2021 and December 31, 2020 were $4.9 million. The net amount of unrecognized tax benefits that, if recognized, would result in an impact to the effective tax rate is $4.7 million as of March 31, 2021 and December 31, 2020. We do not expect any material change in our unrecognized tax benefits during the remainder of 2021.

Our practice is to recognize interest and penalties related to income tax matters in interest expense and selling, general and administrative expenses, respectively. As of March 31, 2021, we did not have a material liability for interest or penalties and had no material interest or penalty expense.

The periods subject to examination for our federal return are years 2017 through 2019. The periods subject to examination for our state returns are years 2016 through 2019. In addition, prior tax years may be subject to examination by federal or state taxing authorities if the Company’s net operating loss carryovers from those prior years are utilized in the future. We are currently under examination by state taxing authorities. We do not expect any settlement or payment that may result from the examination to have a material effect on our results or cash flows.

Our effective tax rate was 7.9% and 24.4% for the quarters ended March 31, 2021 and 2020, respectively. The effective tax rate differed from the federal and state statutory rates primarily due to various permanent income tax differences related to the Searchlight transaction, other various permanent differences, and differences in allocable income for the Company’s

state tax filings. Exclusive of these adjustments, our effective tax rate for the quarters ended March 31, 2021 and 2020 would have been approximately 26.0% and 24.4%, respectively.

As of March 31, 2021, the American Rescue Plan did not have a material impact on the Company's income tax positions. We will continue to evaluate the impact of enacted and future legislation.

- Definition

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.

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