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Note 8: Income Taxes | 12 Months Ended
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Dec. 31, 2013
Notes |
Note 8: Income Taxes | 8) Income Taxes The Company’s income tax liability (benefit) at December 31 is summarized as follows:
| December 31
| 2013 |  | 2012
Current | $ (1,578,071) |  | $ 613,328
Deferred | 17,529,919 |  | 17,309,970
Total | $ 15,951,848 |  | $ 17,923,298
Significant components of the Company’s deferred tax (assets) and liabilities at December 31 are approximately as follows:
| December 31
| 2013 |  | 2012
Assets |  |  |
Future policy benefits | $ (5,381,385) |  | $ (4,160,489)
Loan loss reserve | (2,147,547) |  | (2,353,765)
Unearned premium | (1,759,087) |  | (1,830,492)
Available for sale securities | (566,316) |  | (599,528)
Net operating loss | (873,412) |  | (1,099,500)
Deferred compensation | (1,057,551) |  | (1,238,270)
Deposit obligations | (1,043,964) |  | (1,060,205)
Other | (1,287,773) |  | (1,090,409)
Less: Valuation allowance | 5,593,063 |  | 6,328,931
Total deferred tax assets | (8,523,972) |  | (7,103,727)
Liabilities |  |  |
Deferred policy acquisition costs | 10,914,618 |  | 9,945,683
Basis difference in property and equipment | 6,242,266 |  | 5,739,272
Value of business acquired | 2,951,487 |  | 3,341,888
Deferred gains | 3,545,692 |  | 2,790,709
Trusts | 1,599,657 |  | 1,599,657
Tax on unrealized appreciation | 800,171 |  | 996,488
Total deferred tax liabilities | 26,053,891 |  | 24,413,697
Net deferred tax liability | $ 17,529,919 |  | $ 17,309,970
The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization. The valuation allowance decreased $735,868 during 2013 and increased $2,688,604 during 2012. The Company paid $4,009,598, $1,900,000, and $174,811 in income taxes for 2013, 2012 and 2011, respectively. The Company’s income tax expense (benefit) is summarized as follows for the years ended December 31:
|  | 2013 |  | 2012 |  | 2011
Current |  | $ 1,821,539 |  | $ 2,707,962 |  | $ 130,526
Deferred |  | 416,267 |  | 1,930,813 |  | (192,731)
Total |  | $ 2,237,806 |  | $ 4,638,775 |  | $ (62,205)
The reconciliation of income tax expense at the U.S. federal statutory rates is as follows:
|  | 2013 |  | 2012 |  | 2011
Computed expense at statutory rate |  | $ 3,340,067 |  | $ 7,472,953 |  | $ 410,225
Special deductions allowed |  |  |  |  |  |
small life insurance companies |  | - |  | - |  | (503,672)
Tax audit settlements |  | 20,371 |  | - |  | -
Other, net |  | (1,122,632) |  | (2,834,178) |  | 31,242
Tax expense (benefit) |  | $ 2,237,806 |  | $ 4,638,775 |  | $ (62,205)
At December 31, 2013, the Company had no significant unrecognized tax benefits. As of December 31, 2013, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2009 through 2013 are subject to examination by taxing authorities. An examination of the Company’s 2009 through 2011 federal income tax returns was concluded September 10, 2013 without material adjustment. As part of the examination, the statute of limitations for 2009 was extended to September 15, 2014.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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