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Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
11.INCOME TAXES
The Company and its subsidiaries are based in the U.S. and file federal and various state income tax returns. The components of the provision for income taxes were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Current tax expense$20,868 $10,493 $42,907 $25,241 
Deferred tax expense2,536 3,398 6,053 10,188 
Income tax expense$23,404 $13,891 $48,960 $35,429 
Cash paid for income taxes$19,565 $10,025 $33,385 $24,539 
The effective income tax rate for the three and nine months ended September 30, 2024 was 26.4% and 24.2%, respectively. The rate varied from the statutory rate primarily as a result of non-deductible compensation, state income taxes and other permanent differences. The Company incurred a $62 and $3,450 tax benefit for the three and nine months ended September 30, 2024, respectively, for increased tax deductions related to stock compensation.
Uncertain Tax Positions (“UTP”)—The Company's U.S. federal and state income tax returns for 2021 and later are open and subject to examination. Additionally, federal and state NOLs may be adjusted by the taxing authorities for the 2013 and later tax years.
The Company has a UTP liability of $6,732 and an additional liability related to the UTP for penalties of $1,346 and interest of $926 at September 30, 2024. We recognize penalties related to the UTP as administrative expense. The UTP, including penalties and interest, is fully offset by an indemnification receivable at September 30, 2024.