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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for income taxes consists of the following (in thousands):
Year Ended December 31,
202120202019
Current tax provision:
Foreign$212 $224 $201 
Federal11,702 8,080 4,668 
State3,824 2,780 1,591 
Total Current15,738 11,084 6,460 
Deferred tax provision:
Federal667 1,089 1,290 
State67 344 573 
Total deferred734 1,433 1,863 
Total tax provision$16,472 $12,517 $8,323 

A reconciliation between the income tax provision at the U.S. statutory tax rate and the Company’s income tax provision on the consolidated statements of income and comprehensive income is below (in thousands):
Year Ended December 31,
202120202019
Income before income taxes$63,315 $46,301 $27,932 
U.S. statutory tax rate21 %21 %21 %
Income tax expense at statutory rate13,296 9,723 5,866 
State tax expense, net of federal3,073 2,530 1,639 
Foreign tax rates different from U.S. statutory rate
273 264 260 
Non-deductible expenses337 57 374 
Change in tax rate— (9)71 
Other(507)(48)113 
Total tax provision$16,472 $12,517 $8,323 

As presented in the income tax reconciliation above, the tax provision recognized on the consolidated statements of income and comprehensive income was impacted by state taxes, non-deductible officer compensation and share-based compensation tax benefits, and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate. The Company is also subject to tax in various U.S. state jurisdictions. Changes in the annual allocation and apportionment of the Company’s activity amongst these state jurisdictions results in changes to the blended state rate utilized to measure the Company’s deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. The following table outlines the principal components of the deferred tax assets and liabilities (in thousands):

December 31,
20212020
Deferred tax assets:
U.S. federal and state net operating losses$4,181 $5,529 
Foreign net operating losses248 165 
Allowance for credit losses537 483 
Share-based compensation1,854 1,468 
Accrued compensation762 487 
Deferred revenue895 725 
Other827 — 
Total deferred tax assets9,304 8,857 
Deferred tax liabilities
Depreciation(3,176)(2,460)
Intangible amortization(6,914)(6,924)
Debt origination costs(392)— 
Total deferred tax liabilities(10,482)(9,384)
Valuation allowance(248)(165)
Net deferred tax liability$(1,426)$(692)

At December 31, 2021, the Company had pre-tax federal, state and foreign net operating loss carryforwards of approximately $17.4 million, $13.7 million and $0.9 million, respectively, which are available to reduce future taxable income. With few exceptions, these net operating loss carryforwards will expire from 2030 through 2037 for federal losses, from 2029 through 2037 for state losses, and from 2039 through 2041 for foreign losses. Utilization of the Company’s net operating loss carryforwards is now subject to an annual limitation under Internal Revenue Code Section 382. The Company has recorded a deferred tax asset for only the portion of its net operating loss carryforward that it expects to realize before expiration.

With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for the years prior to 2018. However, the Company has certain net operating loss carryforwards from tax years 2010 through 2017 that are subject to examination. As of December 31, 2021 and 2020, the Company did not have any amounts accrued for interest and penalties or recorded for uncertain tax positions.

In January 2020, Intermex Holdings II, Inc., the Company’s previous parent company, was notified by the IRS that its 2017 federal income tax return was selected for examination. In August 2020, the examination was closed with no changes to the reported tax. As of December 31, 2021 and 2020, no amounts for tax, interest, or penalties have been paid or accrued as a result of this examination.

In accordance with criteria under FASB guidance, Income Taxes, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. After consideration of all evidence, both positive and negative, management has determined that no valuation allowance is required at December 31, 2021 or 2020 on the Company’s U.S. deferred tax assets. However, a valuation allowance of $0.2 million as of both December 31, 2021 and 2020 has been recorded on deferred tax assets associated with Canadian net operating loss carryforwards.

On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effects of COVID-19. The CARES Act provides various tax law changes in response to the COVID-19 pandemic, including increasing the ability to deduct interest expense, providing for deferral on tax deposits, and amending certain provisions of the previously enacted Tax Cuts and Jobs Act. After considering the provisions of the CARES Act, the Company determined that the CARES Act did not have a material effect on its annual effective tax rate and the income tax provision for the years ended December 31, 2021 and 2020.