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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
(10) Income Taxes

As of December 31, 2022 and 2021, the Company’s Consolidated Balance Sheets reflected a receivable of $22 million and $26 million, respectively, from the IRS and certain state jurisdictions.

Income Tax Expense (Benefit)

Income tax expense (benefit) is comprised of the following:
Year Ended December 31,
(in millions)202220212020
Current:
Federal$156 $84 $(63)
State14 7 (5)
Total current170 91 (68)
Deferred:
Federal(26)(76)(1)
State13 (23)(26)
Total deferred(13)(99)(27)
Total income tax expense (benefit)
$157 $(8)$(95)

The following is a reconciliation of total income tax expense (benefit) to income tax expense (benefit) computed by applying the statutory federal income tax rate to pretax income (loss):
Year Ended December 31,
(in millions)202220212020
Tax computed at federal statutory rate$168 $14 $(87)
State income taxes, net of federal tax benefit28 3 (18)
Changes in enacted state tax rates, net of federal tax benefit— (10)— 
State tax incentives, net of federal tax expense(6)(6)(7)
Noncontrolling interest(38)(10)13 
Goodwill impairment— — 3 
Other, net5 1 1 
Total income tax expense (benefit)
$157 $(8)$(95)
Deferred Tax Assets and Liabilities

The income tax effect of temporary differences that give rise to the Deferred income tax assets and Deferred income tax liabilities at December 31, 2022 and 2021 are as follows:
December 31,
(in millions)20222021
Deferred income tax assets:
Personnel accruals$14 $6 
State tax credit carryforward, net8 17 
Net operating loss carryforward— 2 
Total gross deferred income tax assets22 25 
Deferred income tax liabilities:
Investment in CVR Partners(68)(70)
Investment in CVR Refining(202)(222)
Other(1)(1)
Total gross deferred income tax liabilities(271)(293)
Net deferred income tax liabilities$(249)$(268)

Although realization is not assured, management believes that it is more likely than not that all of the deferred income tax assets will be realized, and therefore, no valuation allowance was recognized as of December 31, 2022 and 2021.

As of December 31, 2022, CVR Energy has state tax credits of approximately $9 million, which are available to reduce future state income taxes. These credits have an indefinite carryover period.

Uncertain Tax Positions

A reconciliation of unrecognized tax benefits is as follows:
Year Ended December 31,
(in millions)202220212020
Balance, beginning of year$17 $17 $22 
Decrease based on prior year tax position— — (2)
Reductions related to expirations from statute of limitations(6)— (3)
Balance, end of year$11 $17 $17 

Included in the balance of unrecognized tax benefits as of December 31, 2022, 2021, and 2020 are $9 million, $13 million, and $13 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. Additionally, the Company reasonably believes that $10 million of unrecognized tax positions related to state income tax credits will be recognized by the end of 2023 as a result of the expiration of statute of limitations. Approximately $2 million and $7 million of unrecognized tax benefits were netted with Deferred income tax asset carryforwards as of December 31, 2022 and 2021, respectively. The remaining unrecognized tax benefits are included in Other long-term liabilities in the Consolidated Balance Sheets.

CVR Energy recognized $1 million interest expense and $3 million liability for interest as of December 31, 2022, $1 million interest expense and $2 million liability for interest as of December 31, 2021, and a nominal interest expense and $1 million liability for interest as of December 31, 2020. No penalties were recognized during 2022, 2021, or 2020.
At December 31, 2022, the Company’s tax filings are open to examination in the United States for the tax years ended December 31, 2018 through December 31, 2021 and in various individual states for the tax years ended December 31, 2018 through December 31, 2021.