IRADIMED CORP - 10-K filing on 2016-03-10

10 — Income Taxes

The components of the provision for income taxes are as follows:

	Years Ended December 31,
	2015			2014
Current taxes:
U.S. federal	$	3,874,171		$	1,022,098
State	245,204			112,144

Total current tax expense	4,119,375			1,134,242
Deferred taxes:
U.S. federal	(13,171		)	(149,247		)
State	(1,590		)	(18,020		)

Total deferred tax benefit	(14,761		)	(167,267		)

Income tax expense	$	4,104,614		$	966,975

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred taxes are as follows:

	Years Ended December 31,
	2015		2014
Deferred tax assets:
Current deferred tax assets:
Reserves and allowances	$	205,595	$	119,548

Total current deferred tax assets	$	205,595	$	119,548

Noncurrent deferred tax assets:
Stock compensation	$	427,133	$	417,956
Other	35,511		14,689

Total noncurrent deferred tax assets	$	462,644	$	432,645

Deferred tax liabilities:
Current deferred tax liabilities:
Reserves and allowances	$	64,149	$	3,209

Total current deferred tax liabilities	$	64,149	$	3,209

Noncurrent deferred tax liabilities:
Depreciation and amortization	$	374,246	$	356,088

Total noncurrent deferred tax liabilities	374,246		356,088

A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows:

	Years Ended December 31,
	2015		2014
Statutory U.S. federal tax rate	34.0	%	34.0	%
State taxes, net of federal benefit	1.8		2.0
Stock compensation expense	2.9		0.3
Domestic production activities deduction	(1.8	)	(2.1	)
Research and development credits	(1.1	)	(1.8	)
Permanent items	(0.5	)	(0.4	)

Total	35.3	%	32.0	%

As of December 31, 2015 and December 31, 2014, we have not identified or accrued for any uncertain tax positions. We are currently unaware of any uncertain tax positions that could result in significant payments, accruals or other material deviations in this estimate over the next 12 months.

We file tax returns in the United States Federal jurisdiction and many state jurisdictions. Our returns are not currently under examination by the Internal Revenue Service or other taxing authorities. The Company is subject to income tax examinations for our United States federal and State income taxes for 2008 and subsequent years.