The provision for (benefit of) income taxes consists of the following components:

	Fiscal Year Ended March 31,
	2019			2018			2017
Current:
Federal taxes	$	1,159		$	(2,788	)	$	3,443
State taxes		(238	)		(1,073	)		1,556
Foreign taxes		744			678			498
Total current taxes		1,665			(3,183	)		5,497
Deferred:
Federal taxes	$	3,752		$	2,949		$	824
State taxes		(428	)		(2,510	)		(879	)
Foreign taxes		(195	)		(86	)		(74	)
Total deferred taxes		3,129			353			(129	)
Provision for (benefit of) income taxes	$	4,794		$	(2,830	)	$	5,368

The provision for (benefit of) income taxes differs from the amount computed at the federal statutory rate as follows:

	Fiscal Year Ended March 31,
	2019			2018			2017
Tax expense at United States federal statutory rate ⁽¹⁾	$	6,150		$	(129	)	$	8,263
Items affecting federal income tax rate:
Research and development tax credits		(4,647	)		(4,179	)		(2,276	)
Impact of foreign operations		(304	)		(365	)		(402	)
Compensation		(169	)		620			192
Return to provision true-ups		(149	)		(2,229	)		(300	)
Impact of valuation allowance		(33	)		(101	)		(212	)
Acquisition expenses		(2	)		304			1,336
Qualified production activities income deduction		—			(4	)		(763	)
Impact of deferred adjustments		132			415			(490	)
Non-deductible expenses		140			98			(7	)
Foreign transition tax - Tax Reform		210			1,381			—
Revaluation of deferred tax balances - Tax Reform		231			2,328			—
Impact of uncertain tax positions		375			(2,884	)		311
Impact of amended returns		391			196			(1,530	)
Impact of audit settlements		967			428			—
State income taxes		1,502			1,291			1,246
Provision for (benefit of) income taxes	$	4,794		$	(2,830	)	$	5,368

⁽¹⁾ Federal statutory rate was 21.0%, 31.5% and 35.0% for March 31, 2019, 2018 and 2017, respectively.

The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following:

	March 31, 2019			March 31, 2018
Deferred tax assets:
Compensation and benefits	$	10,707		$	8,023
Research and development credit		10,089			5,368
Deferred revenue		7,171			4,918
Net operating losses		5,320			9,729
Deferred rent		3,143			3,364
Allowance for doubtful accounts		2,156			2,267
Foreign deferred taxes		1,455			1,259
Accrued legal settlement		—			4,906
Other		690			580
Total deferred tax assets		40,731			40,414
Deferred tax liabilities:
Intangibles assets	$	(15,806	)	$	(17,323	)
Prepaid expense		(6,407	)		(1,217	)
Capitalized software		(4,900	)		(4,854	)
Accounts receivable		(2,255	)		(3,340	)
Accelerated depreciation		(1,606	)		(1,568	)
Total deferred tax liabilities		(30,974	)		(28,302	)
Valuation allowance		(3,563	)		(2,893	)
Deferred tax assets, net	$	6,194		$	9,219

The deferred tax assets and liabilities have been shown net in the accompanying consolidated balance sheets as noncurrent.

As of March 31, 2019 and March 31, 2018, we had federal net operating loss (“NOL”) carryforwards of $17,419 and $36,395, respectively. The federal NOL carryforwards were inherited in connection with our acquisitions of HealthFusion in January 2016, Gennius in March 2015, Entrada in April 2017, and EagleDream in August 2017. The NOL carryforwards expire in various amounts starting on 2029 for both federal and state tax purposes. As of March 31, 2019, we had state NOL carryforwards of approximately $1,662 (tax effected), related to the HealthFusion, Entrada, and EagleDream acquisitions state NOL tax attribute. The utilization of the federal NOL carryforwards is subject to limitations under the rules regarding changes in stock ownership as determined by the Internal Revenue Code.

As of March 31, 2019 and March 31, 2018, the research and development tax credit carryforward available to offset future federal and state taxes was $11,072 and $5,368 respectively. The credits expire in various amounts starting in fiscal 2019.

We expect to receive the full benefit of the deferred tax assets recorded with the exception of certain state credits and NOL carryforwards for which we have recorded a valuation allowance.

Notwithstanding the United States taxation of the deemed repatriated foreign earnings as a result of the one-time Transition Tax, we intend to continue investing these earnings indefinitely outside of the United States. If we determine that all or a portion of our foreign earnings are no longer to be indefinitely reinvested, we may be subject to additional foreign withholding taxes and state income taxes in the United States beyond the Tax Reform’s one-time Transition Tax. In the event that we distribute the foreign earnings to the United States, we will incur and record foreign withholding related taxes and U.S. state taxes of approximately $2,440 and $500, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities in our consolidated balance sheet, is as follows:

During the year ended March 31, 2019, we recorded additional net liabilities of $475 related to various federal and state tax planning benefits recorded in the current year for prior year tax positions. If recognized, the total amount of unrecognized tax benefit that would decrease the income tax provision is $2,894.

Our practice is to recognize interest related to income tax matters as interest expense in the consolidated statements of comprehensive income. We had approximately $209 and $213 of accrued interest related to income tax matters as of March 31, 2019 and 2018, respectively. We recognized $19, $86, and $57 of interest related to income tax matters in the consolidated statements of net income and comprehensive income in the years ended March 31, 2019, 2018 and 2017, respectively. No penalties related to income tax matters were accrued or recognized in our consolidated financial statements for all periods presented.

We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2014. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2014. We do not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months.

On December 22, 2017, the President of the United States signed and enacted into law H.R. 1 (the “Tax Reform”). This new tax legislation, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions, such as

We are subject to the provisions of FASB Accounting Standards Codification 740-10, Income Taxes (“ASC 740”), which requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The Tax Reform reduces the federal corporate tax rate from 35% to 21% and thus we have revised our estimated annual effective tax rate to reflect the change in the federal statutory rate to 21%. During fiscal year ended March 31, 2019, we filed our tax returns for the period ended March 31, 2018 and completed our review of the primary impact of the Tax Reform provisions on our deferred taxes. We consider the accounting for the effects of the rate change on our deferred tax balances to be complete and a reduction of $231 in tax measurement period changes was recorded in the current year.

Due to the complexities involved in accounting for the enactment of the Tax Reform, Staff Accounting Bulletin No. 118 (”SAB 118”) allowed us to record provisional amounts in earnings for the year ended March 31, 2018. SAB 118 provides that where reasonable estimates can be made, the provisional accounting should be based on such estimates and when no reasonable estimate can be made, the provisional accounting may be based on the tax law in effect before the Tax Reform. SAB 118 allowed a measurement period of up to one year from the enactment date to identify Tax Reform impacts. During the fiscal year ended March 31, 2019, we completed our analysis of the Tax Reform on our consolidated financial statements and recorded a net tax benefit in the tax provision. Additionally, our United States tax returns for the period ended March 31, 2018 were filed in December 2018 and any changes to the tax positions for temporary differences compared to the estimates used resulted in an adjustment of the estimated tax expense recorded as of March 31, 2018. As a result, the Company’s accounting for the ultimate income tax effects of the Tax Act has been finalized and the measurement period under SAB 118 ended during the nine months ended December 31, 2018. Despite the completion of our accounting for the Tax Reform under SAB 118, many aspects of the law remain unclear and we expect ongoing guidance to be issued at both the federal and state levels. We will continue to monitor and assess the impact of any new developments.

The Tax Reform also required a one-time Transition Tax based on total post-1986 foreign cumulative earnings and profits previously deferred from United States federal taxation, which was reasonably estimated and recorded as a one-time income tax expense of $1,381 at March 31, 2018. During fiscal year ended March 31, 2019, we completed our accounting analysis of the cumulative foreign earnings and Transitional Tax liability under the Tax Reform. A net reduction of $793 to the provisional transition tax amounts previously reported under SAB 118 was included during the nine months ended December 31, 2018. The Transition Tax amount of $8,345 for the cumulative undistributed earnings of our foreign subsidiary has been included in our computation of the Transition Tax. The net reduction of Transition Tax was due primarily to the utilization of additional foreign tax credits. We filed our corporate tax returns during the quarter and utilized available net operating losses to fully offset the Transition Tax.

The Tax Reform also includes a GILTI Tax, requiring inclusion of certain non-United States earnings effective April 1, 2018. The GILTI inclusion has been estimated and included in the effective tax rate used for the tax provision recorded for fiscal year ended March 31, 2019. As there are substantial uncertainties in the interpretations of GILTI and other related new tax reform, BEAT and FDII, we will continue to evaluate the impact of the GILTI provisions under the Tax Reform, which are complex and subject to continuing regulatory interpretation by the United States Internal Revenue Service. We are required to make an accounting policy election of either (1) treating taxes due on future United States inclusions in taxable income related to GILTI as a current period expense when incurred or (2) factoring such amounts into our measurement of deferred taxes. The Company made an accounting policy election to account for GILTI as a component of tax expense in the period in which we are subject and therefore will not provide any deferred tax impacts of GILTI in our consolidated financial statements for the year ended March 31, 2019. The Company has concluded on the policy of tax law ordering for reflecting the realization of the net operating losses related to GILTI as a permanent adjustment. The BEAT provisions eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if greater than regular tax. The Company does not presently expect that it will be subject to the minimum tax imposed by the BEAT. The Tax Reform legislation includes various other provisions with effective dates beginning April 1, 2018 and beyond. For other changes that impact business related income, exclusions, deductions and credits with effective dates for our fiscal year beginning after April 1, 2019, we will continue to account for those items based on our existing accounting under ASC 740 and the provisions of the tax laws that were in effect immediately prior to the enactment of the Tax Reform.