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Income Taxes
6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the six months ended June 30, 2016, the Company recorded an income tax provision of $12,082 inclusive of valuation allowance compared with an income tax benefit of $14,728 for the six months ended June 30, 2015, reflecting an effective income tax rate of 47% for the six months ended June 30, 2016 and 25% for the six months ended June 30, 2015. For the six months ended June 30, 2016, the Company calculated its income tax provision using the estimated annual effective tax rate methodology and for the six months ended June 30, 2015, the Company determined its income tax benefit on a discrete basis since the potential impact of fluctuations in the Company's forecast may have had a significant impact on the estimated annual effective tax rate.
As of both June 30, 2016 and December 31, 2015, the Company had a net deferred tax liability of $61 and state net deferred tax liability of $17. The Company maintained a full valuation allowance against its U.S. net deferred tax assets as of both June 30, 2016 and December 31, 2015.
As of June 30, 2016, the Company had $1,187 of unrecognized tax benefits and it is reasonably possible that the entire amount could be realized by the Company in the year ending December 31, 2016 since the income tax returns may no longer be subject to audit in 2016.
The following state and local jurisdictions are currently examining our respective returns for the years indicated: New York State (2006 through 2013), and New York City (2006 through 2012). On June 10, 2016, the Company received from the State of New York a notice of deficiency related to tax years 2006-2009 for $4,544, inclusive of $2,042 of interest. The Company disagrees with the proposed assessment and intends to file a Request for Conciliation Conference with the State of New York to appeal the assessment. The Company has not recorded a tax reserve related to the proposed assessment. It is difficult to predict the final outcome or timing of resolution of any particular matter regarding these examinations. An estimate of the reasonably possible change to unrecognized tax benefits within the next 12 months cannot be made.