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Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes consists of:
 As of December 31,
 202120202019
Current federal income tax provision$20,987,801 $9,633,927 $13,952,230 
Current state and local income tax provision6,472,120 2,374,534 3,656,997 
Deferred income tax expense (benefit)(1,410,106)1,949,407 1,079,247 
Provision for income taxes
$26,049,815 $13,957,868 $18,688,474 
A reconciliation of income tax expense at the statutory federal rate to the Company’s income tax expense is as follows:
202120202019
Income tax computed at statutory rate$21,344,264 $10,945,831 $16,472,987 
Expense (benefit) attributable to redeemable noncontrolling interests(a)
(291,675)104,035 (1,007,012)
State and local income taxes, net of federal benefit5,112,975 1,875,882 2,835,215 
Internal revenue code section 162 limitations909,387 632,705 625,009 
Change in uncertain state and local tax positions, net of federal benefit— — (47,197)
Excess tax deficit (benefit) on vesting of restricted stock134,302 612,930 (70,878)
Income tax benefit from dividends paid on restricted stock(962,139)(455,283)(431,192)
Interest and penalties22,490 1,460 101,010 
Other(219,789)240,308 210,532 
Income tax expense$26,049,815 $13,957,868 $18,688,474 
(a) The provision for income taxes includes expense (benefit) attributable to the fact that the Company’s operations include the Consolidated Funds, which are not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels.
Deferred income taxes and benefits arise from temporary differences between taxable income for financial statement and income tax return purposes. Net deferred tax assets consisted of the following as of December 31, 2021 and 2020:
20212020
Stock-based compensation$3,446,638 $3,500,026 
Accrued compensation10,527,397 9,026,113 
Unrealized gains(3,255,684)(3,145,177)
Property and equipment(886,164)(963,610)
Other assets and liabilities15,365 20,094 
Net deferred tax assets$9,847,552 $8,437,446 
The net temporary differences incurred to date will reverse in future periods as the Company generates taxable earnings. The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets recorded. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2021, no valuation allowance was deemed necessary.
FASB ASC 740, Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  The Company recognizes tax benefits related to positions taken, or expected to be taken, on its tax returns, only if the positions are "more-likely-than-not" sustainable. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements.
The Company and its subsidiaries file income tax returns with the Internal Revenue Service and the taxing authorities of various states.  Generally, the Company is subject to federal, state, and local examinations by tax authorities for the tax years ended December 31, 2017 through 2021.  During 2020, the Company closed an examination by the California Franchise Tax
Board for the Company’s 2015 and 2016 tax years. During 2019, the Company closed an examination with the New York State Department of Finance and Taxation for tax years 2014 through 2016.
The amount of uncertain tax positions as of December 31, 2021, 2020, and 2019, respectively, which would impact the Company’s effective tax rate if recognized, and a reconciliation of the beginning and ending amounts of uncertain tax positions is as follows:
202120202019
Uncertain tax positions, beginning of the year— — $2,982,337 
Gross addition for tax positions of the current year— — — 
Gross additions for tax positions of prior years— — — 
Reductions of tax positions of prior years for:
Lapses of applicable statutes of limitations— — — 
Settlements during the period— — (2,935,140)
Changes in judgment/excess reserve— — $(47,197)
Uncertain tax positions, end of year— — —