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Note 8: Income Taxes | 12 Months Ended
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Dec. 31, 2016
Notes |
Note 8: Income Taxes | 8) Income Taxes The Company’s income tax liability (benefit) is summarized as follows:
| December 31
| 2016 (As Restated) |  | 2015 (As Restated)
Current | $ (1,511,762) |  | $ (215,366)
Deferred | 25,830,631 |  | 20,628,255
Total | $ 24,318,869 |  | $ 20,412,889
Significant components of the Company’s deferred tax (assets) and liabilities are approximately as follows:
| December 31
| 2016 (As Restated) |  | 2015 (As Restated)
Assets |  |  |
Future policy benefits | $ (9,719,058) |  | $ (7,551,336)
Loan loss reserve | (288,590) |  | (1,163,700)
Unearned premium | (1,519,722) |  | (1,610,684)
Available for sale securities | (51,266) |  | (150,984)
Net operating loss | (1,531,160) |  | (588,537)
Deferred compensation | (2,225,208) |  | (1,994,927)
Deposit obligations | (1,033,580) |  | (1,026,984)
Other | (3,384,144) |  | (3,694,959)
Less: Valuation allowance | 431,802 |  | -
Total deferred tax assets | (19,320,926) |  | (17,782,111)
Liabilities |  |  |
Deferred policy acquisition costs | 18,150,517 |  | 14,838,604
Basis difference in property and equipment | 10,749,036 |  | 9,375,146
Value of business acquired | 2,573,902 |  | 2,972,883
Deferred gains | 9,290,123 |  | 6,902,888
Trusts | 1,599,657 |  | 1,599,657
Tax on unrealized appreciation | 2,788,322 |  | 2,721,188
Total deferred tax liabilities | 45,151,557 |  | 38,410,366
Net deferred tax liability | $ 25,830,631 |  | $ 20,628,255
The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization. For the year ended December 31, 2016, the Company recorded a valuation allowance of $431,802 that relates to the acquisition of First Guaranty Insurance Company that was completed on July 11, 2016. The Company paid $2,667,918, $2,716,161 and $408,939 in income taxes for the years ended December 31, 2016, 2015 and 2014, respectively. The Company’s income tax expense (benefit) is summarized as follows for the years ended December 31:
|  | 2016 (As Restated) |  | 2015 (As Restated) |  | 2014 (As Restated)
Current |  |  |  |  |  |
Federal |  | $ 1,138,196 |  | $ 2,423,846 |  | $ 1,532,539
State |  | 245,764 |  | 412,175 |  | 121,124
|  | 1,383,960 |  | 2,836,021 |  | 1,653,663
Deferred |  |  |  |  |  |
Federal |  | 5,686,651 |  | 4,413,336 |  | 3,406,545
State |  | 443,993 |  | 412,674 |  | 449,911
|  | 6,130,644 |  | 4,826,010 |  | 3,856,456
Total |  | $ 7,514,604 |  | $ 7,662,031 |  | $ 5,510,119
The reconciliation of income tax expense at the U.S. federal statutory rates is as follows:
|  | 2016 (As Restated) |  | 2015 (As Restated) |  | 2014 (As Restated)
Computed expense at statutory rate |  | $ 6,699,099 |  | $ 7,144,580 |  | $ 4,667,165
State tax expense, net of federal tax benefit |  | 455,240 |  | 544,400 |  | 376,883
Change in valuation allowance |  | 431,802 |  | - |  | -
Other, net |  | (71,537) |  | (26,949) |  | 466,071
Tax expense |  | $ 7,514,604 |  | $ 7,662,031 |  | $ 5,510,119
At December 31, 2016, the Company had no significant unrecognized tax benefits. As of December 31, 2016, 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 2013 through 2016 are subject to examination by taxing authorities.

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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