9. Income Taxes

Significant components of deferred tax assets included in the consolidated balance sheets at December 31, 2014 and 2013 were as follows (in thousands):

	December 31, 2014			December 31, 2013
Deferred tax assets:
Compensation	$	1,447		$	1,280
Allowance for doubtful accounts		538			449
Lease obligations - closed clinics		32			77
Deferred tax assets	$	2,017		$	1,806
Deferred tax liabilities:
Depreciation and amortization	$	(8,843	)	$	(4,237	)
Other		(1,083	)		(546	)
Deferred tax liabilities		(9,926	)		(4,783	)
Net deferred tax liabilities	$	(7,909	)	$	(2,977	)
Amount included in:
Other current assets	$	86		$	482
Long term liabilities	$	(7,995	)	$	(3,459	)

During 2014 and 2013, the Company recorded deferred tax assets of $1.0 million and $0.4 million, respectively, related to acquisitions of non-controlling interests. At December 31, 2014 and 2013, the Company had a tax receivable of $4.3 million and $2.2 million, respectively, included in other current assets on the accompanying consolidated balance sheets.

The differences between the federal tax rate and the Company’s effective tax rate for results of continuing operations for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands):

	December 31, 2014				December 31, 2013					December 31, 2012
U. S. tax at statutory rate	$	12,294	35.0	%	$	10,415		35.0	%	$	10,299		35.0	%
State income taxes, net of federal benefit		1,688	4.8	%		1,814		6.1	%		1,219		4.2	%
Deductible losses		-	0.0	%		(98	)	-0.3	%		(404	)	-1.4	%
Nondeductible expenses		292	0.8	%		105		0.3	%		101		0.3	%
	$	14,274	40.6	%	$	12,236		41.1	%	$	11,215		38.1	%

Significant components of the provision for income taxes for continuing operations for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands):

	December 31, 2014		December 31, 2013		December 31, 2012
Current:
Federal	$	7,059	$	8,445	$	7,117
State		940		1,422		360
Total current		7,999		9,867		7,477
Deferred:
Federal		5,266		1,970		3,183
State		1,009		399		555
Total deferred		6,275		2,369		3,738
Total income tax provision for continuing operations	$	14,274	$	12,236	$	11,215

For 2013, 2012 and 2011, the Company performed a detailed reconciliation of its federal and state taxes payable and receivable accounts along with its federal and state deferred tax asset and liability accounts. As a result of this detailed analysis, the Company recorded an increase in the 2014 income tax provision of $223,000, for the 2013 reconciliation, $393,000 additional income tax provision in 2013 for the 2012 reconciliation and $162,000 additional income tax provision in 2012 for the 2011 reconciliation. The Company considers this reconciliation process to be an annual control.

The Company is required to establish a valuation allowance for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income in the periods which the deferred tax assets are deductible, management believes that a valuation allowance is not required, as it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets.

The Company’s U.S. federal returns remain open to examination for 2011 through 2013 and U.S. state jurisdictions are open for periods ranging from 2010 through 2013.

The Company does not believe that it has any significant uncertain tax positions at December 31, 2014, nor is this expected to change within the next twelve months due to the settlement and expiration of statutes of limitation.

The Company did not have any accrued interest or penalties associated with any unrecognized tax benefits nor was any interest expense recognized during the years ended December 31, 2014, 2013 and 2012.