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Income Taxes
9 Months Ended
Jun. 30, 2011
Income Taxes [Abstract]  
Income Taxes
Note 8: Income Taxes
Deferred federal and state taxes principally arise from (i) recognition of finance income collected for tax purposes, but not yet recognized for financial reporting; (ii) provision for impairments/credit losses; and (iii) stock based compensation for stock option grants and restricted stock awards recorded in the statement of operations for which no cash distribution has been made. Other components consist of state net operating loss (“NOL”) carryforwards. The provision for income tax expense for the three month periods ending June 30, 2011 and 2010 reflects income tax expense at an effective rate of 40.5% for both periods. The provision for income tax expense for the nine month periods ending June 30, 2011 and 2010, reflects income tax expense at an effective rate of 40.5% for both periods.
The corporate federal income tax returns of the Company for 2006 through 2009 are subject to examination by the IRS, generally for three years after they are filed. The state income tax returns and other state filings of the Company are subject to examination by the state taxing authorities, for various periods generally up to four years after they are filed.
In April 2010, the Company received notification from the IRS the Company’s 2008 and 2009 federal income tax returns would be audited. This audit is currently in progress.