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Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES:

The effective tax rates for the three and nine months ended September 30, 2018 were 27.9% and 24.1%, respectively. The effective tax rate for the nine months ended September 30, 2018 differs from the U.S. federal statutory rate of 21% primarily due to increases for state taxes and state valuation allowances, offset by the benefits from the filing of a Federal 10-year net operating loss (“NOL”) carryback as well as non-controlling interest.

The effective tax rates for the three and nine months ended September 30, 2017 were (93.5)% and 70%, respectively. The effective rate for the nine months ended September 30, 2017 differs from the U.S. federal statutory rate of 35% primarily due to state income taxes and equity compensation.

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "Act") which, among other things, lowered the U.S. Federal corporate income tax rate from 35% to 21%, repealed the corporate alternative minimum tax ("AMT"), and provided for a refund of previously accrued AMT credits. The Company recorded a net tax benefit to reflect the impact of the Act as of December 31, 2017, as it is required to reflect the change in the period in which the law is enacted. Largely, the benefits recorded in the period ending December 31, 2017 related to the Act are in recognition of the revaluation of deferred tax assets and liabilities, a benefit of $115,291, and a benefit for the reversal of a valuation allowance previously recorded against a deferred tax asset for AMT credits which are now refundable, a benefit of $154,384.

The net benefits for the Act, recorded as of September 30, 2018 represent the Company's best estimate using information available to the Company as of September 30, 2018. The Company anticipates U.S. regulatory agencies will potentially issue further regulations prior to year-end which may alter this estimate. The IRS issued rules during the quarter pertaining to the application of limitations for executive compensation related to contracts existing prior to November 2, 2017, and provisions in the Act addressing the deductibility of interest expense after January 1, 2018. During the three and nine months ended September 30, 2018, no adjustments were recorded to the provisional amounts recognized in 2017. The Company will refine its estimates to incorporate new or better information as it comes available. During the second quarter of 2018, the company filed a Federal NOL carryback resulting in a financial statement benefit of $20,000 through the realization of the Federal NOLs at a 35% tax rate as a carryback versus the current 21% tax rate as a carryforward.

The total amount of uncertain tax positions at September 30, 2018 and December 31, 2017 were $39,953 and $37,813, respectively. If these uncertain tax positions were recognized, approximately $31,516 and $29,376 would affect CNX's effective tax rate at September 30, 2018 and December 31, 2017, respectively. There was a $2,140 change to the unrecognized tax benefits during the nine months ended September 30, 2018.

CNX recognizes accrued interest related to uncertain tax positions in interest expense. As of September 30, 2018 and December 31, 2017, the Company reported an accrued interest liability relating to uncertain tax positions of $897 and $644, respectively, in Other Liabilities on the Consolidated Balance Sheets. The accrued interest liability includes $252 of accrued interest expense that is reflected in the Company's Consolidated Statements of Income for the nine months ended September 30, 2018.
CNX recognizes penalties accrued related to uncertain tax positions in its income tax expense. As of September 30, 2018 and December 31, 2017, CNX had no accrued liabilities for tax penalties related to uncertain tax positions.
CNX and its subsidiaries file federal income tax returns with the United States and income tax returns within various states. With few exceptions, the Company is no longer subject to United States federal, state, local, or non-U.S. income tax examinations by tax authorities for tax years before 2014. The Joint Committee on Taxation concluded its review of the audit of tax year 2015 on March 21, 2018. The audit resulted in a $108,651 reduction to CNX's net operating loss, primarily due to a reduction in the depreciation as an offset to the bonus depreciation taken in the 2010-2013 IRS audit. There was no cash impact from the audit.