Note 13: Income Taxes

9 Months Ended

Sep. 30, 2017

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 September 30,
	2017	2016
Tax at statutory rate	35.0%	35.0%
Nontaxable interest and dividends	(1.6)	(2.1)
Tax credits	(7.8)	(7.6)
State taxes	1.1	1.1
Other	0.2	(1.4)
	26.9%	25.0%

	Nine Months Ended September 30,
	2017	2016
Tax at statutory rate	35.0%	35.0%
Nontaxable interest and dividends	(1.5)	(2.1)
Tax credits	(5.9)	(7.5)
State taxes	1.3	1.1
Other	(0.6)	(0.2)
	28.3%	26.3%

The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS) 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 examinations of the partnerships have been advanced during 2016 and 2017.  One of the partnerships has advanced to Tax Court and has entered a Motion for Entry of Decision with an agreed upon settlement.  The other partnership is at the IRS appeals level.  The Company does not currently expect significant adjustments to its financial statements from these partnership examinations.

The Company is currently under State of Missouri income and franchise tax examinations for its 2014 through 2015 tax years.  The Company does not currently expect significant adjustments to its financial statements from this state examination.  The Company was previously engaged in administrative appeals with the State of Kansas for its 2010 through 2012 tax years.  During the three months ended September 30, 2017, the Company settled its appeal with the Kansas Department of Revenue.  The settlement did not result in any significant adjustments to the Company’s financial statements.