Income tax expense (benefit) included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands):


	2020		2019		2018
Continuing operations :
Current:
Federal	$	21,926	$	12,776	$	12,626
Foreign	78		48		45
State and local	5,584		4,110		2,808
Total	27,588		16,934		15,479
Deferred:
Federal	(1,968)		3,685		2,047
State and local	(479)		1,221		741
Total	(2,447)		4,906		2,788
Total income tax expense from continuing operations	25,141		21,840		18,267
Discontinued operations :
Operations of discontinued operations:
Current	(11)		(107)		2
Deferred	—		(1)		(1)
Total income tax expense from discontinued operations	(11)		(108)		1
Total income tax expense	$	25,130	$	21,732	$	18,268

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):


	2020			2019			2018
Tax at U.S. federal statutory rates	$	21,733		$	19,507		$	16,766
State taxes (net of federal benefit)	5,354			4,774			3,745
Business meals and entertainment — non-deductible	458			987			915
Change in valuation allowance	176			932			264
Reserves for uncertain tax positions	(1,290)			(263)			(1,124)
Share-based compensation	(2,394)			(4,773)			(3,260)

Non-deductible expenses	787			713			785
Other, net	317			(37)			176
Provision for income taxes from continuing operations	$	25,141		$	21,840		$	18,267
Effective income tax rate	24.3		%	23.5		%	22.9		%

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019, were as follows (in thousands):


	2020		2019
Deferred tax assets:
Net operating loss carryforwards	$	1,249	$	1,594
Allowance for doubtful accounts	3,288		3,156
Employee benefits and compensation	30,151		26,442
Lease costs	6,291		4,889
State tax credit carryforwards	1,291		1,322
Deferral of employer FICA taxes	3,983		—
Other deferred tax assets	424		30
Total gross deferred tax assets	46,677		37,433
Less: valuation allowance	(2,663)		(2,799)
Total deferred tax assets, net	44,014		34,634
Deferred tax liabilities:
Client list intangible assets	524		846
Goodwill and other intangibles	49,680		42,496
Property and equipment	2,071		2,291
Other deferred tax liabilities	491		721
Total gross deferred tax liabilities	52,766		46,354
Net deferred tax liability	$	(8,752)	$	(11,720)

We have established valuation allowances for deferred tax assets related to certain employee benefits and compensation, state net operating loss (“NOL”) carryforwards and state income tax credit carryforwards at December 31, 2020 and December 31, 2019. The net decrease in the valuation allowance of $0.1 million for the year ended December 31, 2020 primarily related to changes in the valuation allowance for NOLs.

In assessing the realization of deferred tax assets, management considers all available positive and negative evidence, including projected future taxable income, scheduled reversal of deferred tax liabilities, historical financial operations and tax planning strategies. Based upon review of these items, management believes it is more-likely-than-not that the Company will realize the benefits of these deferred tax assets, net of the existing valuation allowances.

We file income tax returns in the United States, Canada, and most state jurisdictions. With limited exceptions, our state and local income tax returns and non-U.S. income tax returns are no longer subject to tax authority examinations for years ending prior to January 1, 2016 and January 1, 2015, respectively.

The availability of NOLs and state tax credits are reported as deferred tax assets, net of applicable valuation allowances, in the accompanying Consolidated Balance Sheets. At December 31, 2020, we had state net operating loss carryforwards of $34.4 million and state tax credit carryforwards of $1.3 million. The state net operating loss carryforwards expire on various dates between 2021 and 2040 and the state tax credit carryforwards expire on various dates between 2021 and 2029.


	2020		2019		2018
Balance at January 1	$	2,536	$	2,819	$	3,882
Additions for tax positions of the current year	150		145		119
Settlements of prior year positions	—		(282)		(16)
Lapse of statutes of limitation	(1,150)		(146)		(1,166)
Balance at December 31	$	1,536	$	2,536	$	2,819

Included in the balance of unrecognized tax benefits at December 31, 2020 are $0.9 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. We believe it is reasonably possible that certain of these unrecognized tax benefits could change in the next twelve months. We expect reductions in the liability for unrecognized tax benefits of approximately $0.5 million within the next twelve months due to expiration of statutes of limitation. Given the number of years that are currently subject to examination, we are unable to estimate the range of potential adjustments to the remaining balance of unrecognized tax benefits at this time.

We recognize interest expense, and penalties related to unrecognized tax benefits as a component of income tax expense. During 2020, we recorded an immaterial decrease in accrued interest, and, as of December 31, 2020, we had recognized a liability for interest expense and penalties of $0.4 million and $0.2 million, respectively, relating to unrecognized tax benefits. During 2019, we accrued interest expense of less than $0.1 million and, as of December 31, 2019, had recognized a liability for interest expense and penalties of $0.7 million and $0.2 million, respectively, relating to unrecognized tax benefits.