12. INCOME TAXES

The provision (benefit) for income taxes is comprised of:

	Fiscal Year

	2013		2012			2011
Current federal taxes (benefit)	$	88,000	$	88,000		$	(22,000	)
Current state taxes		44,000		77,000			58,000
Deferred federal taxes (benefit)		—		(1,830,000	)		1,064,000
Deferred state taxes (benefit)		—		(418,000	)		400,000


	$	132,000	$	(2,083,000	)	$	1,500,000

The provision (benefit) for income taxes reconciles to the amounts computed by applying the statutory federal tax rate of 34% to our income (loss) before income taxes. The sources and tax effects of the differences for fiscal years 2013, 2012 and 2011 are as follows:

	2013			2012			2011

Computed "expected" federal income tax expense (benefit)	$	940,000		$	(6,590,000	)	$	1,132,000
Permanent differences		93,000			93,000			88,000
Current and deferred state income tax (benefit) expense, net of federal benefit		(19,000	)		(1,081,000	)		302,000
Change in valuation allowances on deferred tax assets		(897,000	)		5,473,000			—
Other		15,000			22,000			(22,000	)


	$	132,000		$	(2,083,000	)	$	1,500,000

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and liabilities are as follows:

	December 27, 2013			December 28, 2012			December 30, 2011

Current deferred tax assets:
Accounts receivable allowance	$	156,000		$	119,000		$	171,000
Other accrued liabilities		764,000			866,000			895,000


		920,000			985,000			1,066,000
Valuation allowance		(483,000	)		(570,000	)		—


Net deferred tax assets		437,000			415,000			1,066,000


Current deferred tax liabilities:
Deferred revenue		(4,125,000	)		(3,867,000	)		(8,353,000	)
Other		—			—			(62,000	)


		(4,125,000	)		(3,867,000	)		(8,415,000	)


Net current deferred tax liability	$	(3,688,000	)	$	(3,452,000	)	$	(7,349,000	)




Deferred tax assets, net of current portion:
Federal and state net operating losses	$	3,157,000		$	3,370,000		$	5,680,000
Intangible assets		4,571,000			4,962,000			—
Other		64,000			143,000			72,000


		7,792,000			8,475,000			5,752,000
Valuation allowance		(4,093,000	)		(4,903,000	)		—


Net deferred tax assets		3,699,000			3,572,000			5,752,000
Deferred tax liabilities, net of current portion:
Goodwill amortization		—			—			(460,000	)
Fixed assets		(11,000	)		(67,000	)		(83,000	)
Other		0			(53,000	)		(109,000	)


Net non-current deferred tax assets	$	3,688,000		$	3,452,000		$	5,100,000

At December 27, 2013, the Company had federal and state operating loss carryovers of $6.8 million and $9.8 million, respectively. These carryovers expire through 2031 for federal and state income taxes.

The Company files income tax returns in the U.S. federal and various state jurisdictions. Management believes that there are no material uncertain tax positions that would impact the accompanying consolidated financial statements. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The Company may be subject to examination by the Internal Revenue Service for calendar years 2010 through 2013. The Company may also be subject to examination on certain state and local jurisdictions for the years 2009 through 2013.