	The following table reconciles the balance of UTBs:

		Nine-Month Period Ended September 30, 2014		Nine-Month Period Ended September 30, 2013

(In thousands)

Balance beginning of the year		$	4,310	$	2,374
(Decrease) increase related to positions taken during prior years			(1,763)		3,102
Decrease related to settlement with taxing authorities			(2,547)		-
Balance at end of period		$	-	$	5,476

As of September 30, 2014, the Corporation did not have UTBs recorded on its books. The years 2007 through 2009 were examined by IRS and disputed issues were taken to administrative appeals during 2011. Based on feasible settlement with the IRS Appeals office in June 2014, the Corporation released a portion of its reserve for uncertain tax positions, resulting in a tax benefit of approximately $1.8 million. During the month of July 2014, the Corporation reached an agreement with the IRS Appeals office. Accordingly, the remaining UTB's recorded on the books in the amount of $2.5 million was paid to settle the resulting tax liability. Such settlement did not have an impact on the effective tax rate.

The Corporation's liability for income taxes includes the estimate of interest not yet paid related to the settlement reached with the IRS to close the tax years 2007 through 2009 that were the subject of the IRS examination. The Corporation classifies all interest and penalties, if any, related to tax uncertainties as income tax expense. As of September 30, 2014, the Corporation's accrued interest that relates to the IRS examination amounted to $1.4 million and there was no need to accrue for the payment of penalties. Audit periods remain open for review until the statute of limitations has passed. The statute of limitations under the 2011 PR Code is 4 years; the statute of limitations for Virgin Islands and U.S. income tax purposes are each three years after a tax return is due or filed, whichever is later. The completion of an audit by the taxing authorities or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Corporation's liability for income taxes. Any such adjustment could be material to results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. For Virgin Islands and U.S income tax purposes, all tax years subsequent to 2010 remain open to examination. For Puerto Rico purposes, all tax years subsequent to 2009 remain open to examination. Tax year 2010 is currently under examination by the Puerto Rico Department of Treasury.