The provision for income taxes for the periods ended December 31, 2015, 2014 and 2013 are as follows (in thousands):

		Year Ended
		December 31,
		2015		2014		2013
CURRENT:

U.S. Federal	$	477	$	38	$	70
State and local		93		(11)		25
		570		27		95

DEFERRED:
U.S. Federal		2,052		(853)		1,477
State and local		73		24		4
		2,125		(829)		1,481

	$	2,695	$	(802)	$	1,576

Taxes computed at the federal statutory rate of 35% for the years ended December 31, 2015, 2014 and 2013 are reconciled to the Company's actual income tax expense as follows (in thousands):

The current federal income tax provision for the periods ending December 31, 2015, 2014 and 2013 represents only federal alternative minimum tax due to the Company’s federal net operating loss carryforwards.

The tax effect of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2015 and 2014 are as follows (in thousands):

		2015		2014

DEFERRED TAX ASSETS:
Investments	$	66	$	66
Compensation accruals		978		923
Policy benefits and claims		461		366
Goodwill		2,278		2,234
Partnerships		167		744
Unrealized securities losses		106		-
AMT		634		515
Other		272		28
Net operating loss carryforwards		90,322		92,395

Total gross deferred tax assets		95,284		97,271

Less valuation allowance		(74,087)		(74,087)

Net deferred tax assets		21,197		23,184

DEFERRED TAX LIABILITIES:
Intangibles		(4,720)		(3,062)
Other		(262)		(145)
Total gross deferred tax liabilities		(4,982)		(3,207)
Net deferred tax asset	$	16,215	$	19,977

The valuation allowance at December 31, 2015 and 2014 was primarily related to net operating loss carryforwards that, in the judgment of management, were not considered realizable prior to the effects of the Risk Solutions Sale and Coinsurance Transaction as more fully described in Note 20. During the year ended December 31, 2014 the Company decreased its valuation allowance by $3,062,000. The valuation allowance decrease in the year ended December 31, 2014 included $2,500,000 for the projected utilization of federal net operating losses which was allocated to operations, and a decrease of $699,000 due to deferred tax on unrealized losses allocated to equity, offset by an increase of $137,000 due to an adjustment to net deferred tax assets.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Management believes that it is more likely than not that the Company will realize the benefits of these net deferred tax assets recorded at December 31, 2015.

At December 31, 2015, the Company had federal NOL carryforwards of approximately $258,061,000 expiring in varying amounts through the year 2028 with a significant portion expiring in 2020. It is anticipated that there will be a significant utilization of the federal NOL carryforwards in 2016, and a corresponding adjustment to the valuation allowance, in connection with the Risk Solutions Sale and Coinsurance Transaction as more fully described in Note 20 for subsequent events.

The Internal Revenue Service has previously audited the Company’s 2003, 2004 and 2009 consolidated income tax returns and made no changes to the reported tax for those periods. Management believes that it has made adequate provision for all income tax uncertainties, such that the outcome of any unresolved issues or claims will not result in a material change to our financial position or results of operations.

Interest expense and penalties related to unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 are insignificant.

AMIC's ability to utilize its federal NOL carrryforwards would be substantially reduced if AMIC were to undergo an "ownership change" within the meaning of Section 382(g)(1) of the Internal Revenue Code. AMIC will be treated as having had an "ownership change" if there is more than a 50% increase in stock ownership during a three year '"testing period" by "5% stockholders." In order to reduce the risk of an ownership change, in November 2002, AMIC's stockholders approved an amendment to its certificate of incorporation restricting transfers of shares of its common stock that could result in the imposition of limitations on the use, for federal, state and city income tax purposes, of AMIC's NOL carryforwards and certain federal income tax credits. The certificate of incorporation generally restricts any person from attempting to sell, transfer or dispose, or purchase or acquire any AMIC stock, if such transfer would affect the percentage of AMIC stock owned by a 5% stockholder. Any person attempting such a transfer will be required, prior to the date of any proposed transfer, to request in writing that the board of directors review the proposed transfer and authorize or not authorize such proposed transfer. Any transfer attempted to be made in violation of the stock transfer restrictions will be null and void. In the event of an attempted or purported transfer involving a sale or disposition of capital stock in violation of stock transfer restrictions, the transferor will remain the owner of such shares. Notwithstanding such transfer restrictions, there could be circumstances under which an issuance by AMIC of a significant number of new shares of common stock or other new class of equity security having certain characteristics (for example, the right to vote or convert into Common Stock) might result in an ownership change under the Code.

As of December 31, 2015, AMIC believes there were no material uncertain tax positions that would require disclosure under GAAP.