Note 13: Income Taxes

6 Months Ended

Jun. 30, 2015

Notes

Note 13: Income Taxes

NOTE 13: INCOME TAXES

Reconciliations of the Company’s effective tax rates to the statutory corporate tax rates were as follows:

	Three Months Ended June 30,
	2015	2014
Tax at statutory rate	35.0%	35.0%
Nontaxable interest and dividends	(1.8)	(3.1)
Tax credits	(8.0)	(9.2)
State taxes	1.3	1.6
Other	(0.4)	0.7
	26.1%	25.0%

	Six Months Ended June 30,
	2015	2014
Tax at statutory rate	35.0%	35.0%
Nontaxable interest and dividends	(2.4)	(3.4)
Tax credits	(8.1)	(9.6)
State taxes	1.1	1.4
Other	(0.1)	0.3
	25.5%	23.7%

The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS) or the state taxing authorities with respect to income or franchise tax returns, and as such, tax years through December 31, 2005, have been closed without audit. The Company, through one of its subsidiaries, is a partner in two partnerships currently under IRS examination for 2006 and 2007. As a result, the Company’s 2006 and subsequent tax years remain open for examination. The IRS audits of the two partnerships are ongoing.  The IRS has raised questions about the validity of the allocation of a portion of the credits by one of the partnerships.  At this time, the Company believes that the partnership has sufficient technical support for its allocation position regarding these credits and that it is more likely than not these allocations will ultimately be sustained; therefore, a reserve for uncertain tax positions is not required.