Company: EVCM
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001853145-25-000009
Chunk: 174

Company: EverCommerce Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 174
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 2024, will be accounted for as follows: $64.4 million will be recognized as a reduction of income tax expense and $0.4 million will be recorded as an increase in equity.

II-48

   EverCommerce Inc.Notes to Consolidated Financial Statements

A reconciliation of our valuation allowance on deferred tax assets is as follows:Year Ended December 31,20242023(in thousands)Balance at beginning of period$51,904 $47,756 Additions to valuation allowance12,992 5,342 Additions recorded in acquisition accounting— 216 Reductions recorded from sale of business(541)— Additions recorded as a decrease in equity771 8 Reductions recorded as an increase in equity(256)(1,418)Balance at end of period$64,870 $51,904 The Company files income tax returns in the U.S. federal jurisdiction, Colorado, various other state jurisdictions, Canada, Jordan, the United Kingdom, Australia and New Zealand. The years open for audit vary depending on the tax jurisdiction. In the U.S., the Company's federal tax returns for the years before 2021 (year ended December 31, 2021) are no longer subject to audit. The net operating losses utilized during the open periods from select years prior to 2021 are subject to examination. The foreign jurisdictions statutes vary but are generally four years from assessment of the return.While management believes we have adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from our accrued positions as a result of uncertain and complex application of tax regulations. Additionally, the recognition and measurement of certain tax benefits includes estimates and judgment by management and inherently includes subjectivity. Accordingly, additional provision on federal, state and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved.A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:Year Ended December 31,20242023(in thousands)Balance at beginning of period$531 $364 Gross additions based on tax positions related to the current year57 167 Gross reductions based on tax positions related to prior years(38)— Balance at end of period$550 $531 As of December 31, 2024 and 2023, unrecognized tax benefits of $0.6 million and $0.5 million, respectively, were recorded in other long-term liabilities, which would impact the annual effective