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INCOME TAXES
 9 Months Ended
Sep. 30, 2023
INCOME TAXES  
INCOME TAXES

7.INCOME TAXES

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Components of income tax expense are as follows:

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​

​

​

​

​

​

​

​

​

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Three Months Ended

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Nine Months Ended

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​

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September 30, 

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September 30, 

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​

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2023

    

2022

    

2023

    

2022

    

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(in thousands)

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Current:

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​

​

​

​

​

​

​

​

​

​

​

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Federal

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$

5,429

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$

5,944

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$

13,676

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$

17,153

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State

​

 

373

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387

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946

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1,218

​

​

​

 

5,802

​

 

6,331

​

 

14,622

​

 

18,371

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Deferred:

​

​

​

​

​

​

​

​

​

​

​

​

​

Federal

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(2,077)

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267

​

 

(2,598)

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34,932

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State

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(324)

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2

​

 

(383)

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2,343

​

​

​

 

(2,401)

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269

​

 

(2,981)

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37,275

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Income tax expense

​

$

3,401

​

$

6,600

​

$

11,641

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$

55,646

​

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On March 15, 2022, Alliance Minerals changed its U.S. federal income tax status from a pass-through entity to a taxable entity via a "check the box" election (the "Tax Election"), which became effective January 1, 2022. The Tax Election resulted in the recognition of an initial deferred tax liability of $37.3 million and a corresponding increase to income tax expense for the nine months ended September 30, 2022.

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The effective income tax rate for our income tax expense for the three and nine months ended September 30, 2023 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes. The effective income tax rate for our income tax expense for the three and nine months ended September 30, 2022 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes, partially offset by the effect of the Tax Election.

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Our 2020 through 2022 tax years remain open to examination by tax authorities, and lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service.