INCOME TAXES

9 Months Ended

Sep. 30, 2011

7. INCOME TAXES

For the three and nine months ended September 30, 2011, the Company’s effective income tax rate of 29.7% and 32.6% of pretax income, respectively, differed from the federal statutory rate of 35.0% due primarily to temporary timing differences.

Prior to the Company’s acquisition by Piper, on December 1, 2010, all of the net income from the Company’s subsidiaries, First Street Surgical Center, L.P., First Surgical Woodlands, L.P., and First Street Hospital, L.P. passed through to the then-limited partners of each of the Company’s subsidiaries and the Company, therefore, had no corporate tax obligation to record. Had the acquisition by Piper occurred on January 1, 2010, the Company would have incurred the following pro-forma income tax expense for the three and nine months ended September 30, 2010:

	Pro Forma for the		Pro Forma for the
	Three Months Ended		Nine Months Ended
	September 30, 2010		September 30, 2010
Current Taxes	$	360,269	$	2,878,359

Deferred Taxes		-		-
Total	$	360,269	$	2,878,359

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

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+ Details

First Surgical Partners Inc. 10-Q