Income Taxes

The components of the income tax provision are as follows:



	2013		2012		2011
Federal - current	$	—	$	—	$	—
State and local - current	19		23		36
	$	19	$	23	$	36

The following reconciles the “statutory” federal income tax rate to the effective income tax rate:



	2013		2012		2011
Computed "expected" income tax benefit	(35	)%	(35	)%	(35	)%
Reduction (increase) in income tax benefit and increase (reduction) in income tax expense resulting from:
State tax, net of federal benefit	—		—		—
Change in federal valuation allowance	35		35		35
Other	—		—		—
Effective income tax rate	—	%	—	%	—	%

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2013 and 2012 are as follows:



	2013			2012
Deferred tax assets:
Receivable allowance	$	59		$	259
Goodwill	4,238			6,459
Restructuring accrual	370			215
Impairment and accumulated depreciation	—			675
Intangible assets	845			1,309
Compensation expense	1,518			1,399
Federal net operating loss carryforward	48,990			40,773
State net operating loss carryforward	5,756			5,109
AMT credit carry forward	—			157
Accrued expenses	25			65
Deferred rent	131			177
Other	167			182
Gross deferred tax assets	$	62,099		$	56,779
Valuation allowance	(61,500		)	(56,779		)
	$	599		$	—
Deferred tax liabilities:
Impairment and accumulated depreciation	(599		)	—
Gross deferred tax liabilities	(599		)	—
Net deferred tax assets	$	—		$	—

The Company has significant deferred tax assets attributable to tax deductible intangibles and federal and state net operating loss carryforwards, which may reduce taxable income in future periods. Based on the continued decline in revenues, the cumulative tax and operating losses, the lack of taxes in the carryback period, and the uncertainty surrounding the extent or timing of future taxable income, the Company does not believe it will realize the tax benefits of its deferred tax assets. Accordingly, the Company continues to record a full valuation allowance on its net deferred tax assets as of December 31, 2013 and 2012. During 2012, capital loss carryforwards of $2.0 million, which had a full valuation allowance, expired and were written off.

There was no federal tax expense recorded in the years ended December 31, 2013, 2012 and 2011. The income tax expense recorded for the years ended December 31, 2013 and 2012 reflects a state tax liability to one state. The income tax expense recorded in the year ended December 31, 2011 is primarily due to taxes on gross revenues related to two states, a liability, including interest, for amended tax returns for one of these states for the years 2006 through 2008 and the true-up of the 2010 tax provision for two states.

As of December 31, 2013, no amounts were recorded for uncertain tax positions or for the payment of interest or penalties. The Company is under examination by the IRS and expects to reach a conclusion with the IRS for tax year 2011 without a material effect. State income tax returns for the year 2009 and forward are subject to examination.

As of December 31, 2013, the Company had U.S. federal and state net operating loss carryforwards of approximately $140.0 million and $127.2 million, respectively. The net operating loss carryforwards, if not utilized, will expire in the years 2014 through 2033.