The provision (benefit) for income taxes for the years ending December 31, 2017 and 2016 consists of the following:

For the year ended December 31, 2016, the Company recorded deferred tax liabilities of $1.7 million as a result of intangible assets subject to amortization acquired in business acquisitions that are not amortizable for income tax purposes. As a result of these business combinations, the recording of the deferred tax liabilities resulted in a release of the valuation allowance against the Company’s deferred tax assets of $1.7 for the year ended December 31, 2016, with a corresponding income tax benefit. The tax benefit will be realized as the Company amortizes the intangible assets over their estimated useful lives (see Note 5).

The following reconciles the Federal statutory tax rate to the effective income tax rate for the years ended December 31, 2017 and 2016:

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, management evaluates 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 periods 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. Based on management’s evaluation, it is more likely than not that the net deferred tax assets will not be realized and as such a valuation allowance has been recorded as of December 31, 2017 and 2016.

The components of the Company's deferred tax assets and liabilities consist of the following at December 31, 2017 and 2016:

At December 31, 2017 and 2016, the Company had federal net operating loss carryforwards of approximately $127.0 million and $122.0 million, respectively, which expire in varying amounts through December 31, 2037. Pursuant to Code Sec. 382 of the Internal Revenue Code (“the Code”), the utilization of net operating loss carryforwards may be limited as a result of a cumulative change in stock ownership of more than 50% over a three-year period. The Company underwent such a change and consequently, the utilization of a portion of the net operating loss carryforwards is subject to certain limitations.

Impact of 2017 Tax Reform

On December 22, 2017 the Tax Cuts and Jobs Act (the “Tax Act”) was enacted in the United States. Among its many provisions, the Tax Act reduces the U.S. corporate income tax rate from 35% to 21%; requires companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; eliminates the corporate alternative minimum tax (AMT); creates a new limitation on deductible interest expense; and changes rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. As a result of the Tax Act, the Company remeasured its deferred tax assets and liabilities to reflect the new statutory federal rate of 21% which resulted in a net adjustment of approximately $13.8 million to deferred income tax expense for the year ended December 31, 2017. This adjustment was offset by a reduction in the valuation allowance.