
	For the year ended
	December 31,
		2020		2019		2018
Current:
Federal		$	(29)	$	(29)	$	—
State		—		—		—
Current tax expense (benefit)		$	(29)	$	(29)	$	—

Deferred:
Federal		29		29		(28)
State		—		—		—
Deferred tax expense (benefit)		29		29		(28)
Total income tax expense (benefit)		$	—	$	—	$	(28)

The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to the combined income of the Company's TRS before taxes were as follows (in thousands):


	For the year ended
	December 31,
	2020			2019			2018
Book loss before income taxes of the TRS	$	(4,838)		$	(8,167)		$	(6,040)

Statutory rate of 21% for 2018 and after	$	(1,016)		$	(1,715)		$	(1,268)
Effect of state and local income taxes, net of federal tax benefit	(253)			(347)			(200)


Permanent adjustments	4			8			12
Change in valuation allowance	1,445			2,100			1,456
Valuation allowance release	—			—			(28)
Other	(180)			(46)			—
Total income tax (benefit) expense	$	—		$	—		$	(28)

Effective tax rate	—		%	—		%	0.46		%

At December 31, 2020 and 2019, the Company had valuation allowances against certain deferred tax assets totaling $7.1 million and $5.6 million, respectively. The increase in valuation allowance was primarily from the increase in the net operating losses incurred during the year. The tax effect of each type of temporary difference and carry forward that gives rise to the deferred tax asset as of December 31, 2020 and 2019 are as follows (in thousands):


	For the year ended
	December 31,
	2020		2019
Gross Deferred Tax Assets:
Allowance for doubtful accounts	$	133	$	117
Accrued compensation	547		870
Net operating loss	6,541		4,741
AMT credit	—		29
Gross Deferred Tax Assets	$	7,221	$	5,757
Less: Valuation Allowance	$	(7,070)	$	(5,625)
Total Deferred Tax Assets Net of Valuation Allowance	151		132
Gross Deferred Tax Liabilities:
Total Book/tax difference in partnership	(151)		(103)
Gross Deferred Tax Liabilities:	(151)		(103)
Net, Deferred Tax Assets:	—		29

As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of net deferred tax assets. The Company's TRS is expecting continued taxable losses in 2020. As of December 31, 2020, the TRS continues to recognize a full valuation allowance equal to 100% of the net deferred tax assets. Management will continue to monitor the need for a valuation allowance.

The TRS has income tax NOL carryforwards for Federal and various states of approximately $24.2 million and $30.0 million, respectively. The loss carryforwards begin to expire starting in 2038 for Federal purposes and in 2031 and thereafter for state purposes.