Note 13: Income Taxes

6 Months Ended

Jun. 30, 2018

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,
	2018	2017
Tax at statutory rate	21.0%	35.0%
Nontaxable interest and dividends	(0.8)	(1.2)
Tax credits	(3.6)	(4.3)
State taxes	1.2	1.8
Other	(0.1)	(0.5)
	17.7%	30.8%

	Six Months Ended June 30,
	2018	2017
Tax at statutory rate	21.0%	35.0%
Nontaxable interest and dividends	(0.9)	(1.5)
Tax credits	(4.0)	(5.1)
State taxes	1.2	1.5
Other	(0.3)	(1.0)
	17.0%	28.9%

H.R. 1, originally known as the Tax Cuts and Jobs Act ("Tax Act") was signed into law on December 22, 2017, making several changes to U. S. corporate income tax laws, including reducing the corporate Federal income tax rate from 35% to 21% effective January 1, 2018.  U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the Company recognized the income tax effects of the Tax Act in its 2017 financial statements.  The Tax Act is complex and requires significant detailed analysis.  During the preparation of the Company's 2017 income tax returns in 2018, additional adjustments related to enactment of the Tax Act may be identified.  We do not currently expect significant adjustments will be necessary, but any further adjustments identified will be recognized in accordance with guidance contained in Staff Accounting Bulletin No. 118 from the U. S. Securities and Exchange Commission.

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 which have been under Internal Revenue Service examination for 2006 and 2007.  As a result, the Company's 2006 and subsequent tax years remain open for examination.  The examinations of these partnerships 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 examination was recently completed by the IRS with no change impacting the Company's tax positions.  The Company does not currently expect significant adjustments to its financial statements from the partnership matter at the Tax Court.

The Company was previously under State of Missouri income and franchise tax examinations for its 2014 through 2015 tax years.  The Company disagreed with the proposed results of these examinations.  As a result, the Company has filed a protest with the state outlining its tax position and support under Missouri law. Therefore, the Company does not currently expect significant adjustments to its financial statements from this examination.  During 2017, the Company settled an appeal with the Kansas Department of Revenue.  The settlement did not result in any significant adjustments to the Company's financial statements.