10. INCOME TAXES

A reconciliation of the U.S. federal statutory rate to our effective tax rate is as follows:



	For the Three Months Ended March 31,
	2014		2013
U.S. federal statutory rate	35.0	%	35.0	%
State income taxes	3.1	%	1.4	%
Changes in reserve for uncertain tax positions as a result of settlements and lapsed statutes and related interest	(0.5)	%	(0.3)	%
Other	0.2	%	0.2	%
Effective tax rate	37.8	%	36.3	%

The differences between the U.S. federal statutory rate and our effective tax rate are primarily due to state income taxes and reserves for uncertain tax positions and related interest that are included in the provision for income taxes.

The state income taxes for the three months ended March 31, 2014 reflect changes in state tax laws enacted during the quarter that will result in higher future tax liabilities for the Company in a jurisdiction with high Consumer Loan assignment volume. The impact of revaluing deferred taxes based upon the enacted law that will apply when the corresponding temporary differences are expected to be realized was recognized in the current quarter and resulted in an increase of 1.9% to the effective tax rate. The changes in state tax laws are effective beginning in 2015 and are not expected to have a significant impact to our effective tax rate.

Our federal income tax return for 2011 is currently under audit by the Internal Revenue Service.