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TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. Income Taxes – (continued)
tax credits. We recorded a current tax provision for corporate alternative minimum federal taxes and state taxes of approximately
$34,000, $554,000 and $885,000 during the years ended December 31, 2010, 2009 and 2008, respectively. Total tax (benefit)
provision was approximately ($3.9) million, $554,000 and ($2.8) during the years ended December 31, 2010, 2009 and 2008,
respectively.
Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a
tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more
likely than not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements.
In accordance with the guidance we have evaluated our tax credits for uncertain tax positions. As of December 31, 2010 we
have net tax credits totaling $6.0 million for Federal and California purposes. In addition, we had $1.7 million of unrecognized
tax benefits which is subject to examination by the taxing authorities and upon further examination, we may increase or decrease
our unrecognized tax benefit based on the results of the examination.
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31,
2010, 2009 and 2008 (in thousands):
Our policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of
income tax expense. As of December 31, 2010, we have not recorded any interest and penalty expense.
We remain subject to examination by the relevant tax authorities. These include the 2007 through 2009 tax years for federal
purposes and the 2006 through 2009 tax years for California purposes.
Unrecognized
Tax Benefits
Balance at December 31, 2007
—
Additions for tax positions of prior years
—
Addition for tax position of the current year
—
Settlement
—
Balance at December 31, 2008
—
Additions for tax positions of prior years
(1,557
)
Addition for tax position of the current year
(153
)
Settlement
—
Balance at December 31, 2009
$
(1,710
)
Additions for tax positions of prior years
(23
)
Addition for tax position of the current year
—
Settlement
—
Balance at December 31, 2010
$
(1,733
)
F-17