Deferred international tax

  
The provision for income taxes consists of: 

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| (Dollars in millions) |  | For the years ended December 31, |
|  |  | 2021 |  | 2020 |  | 2019 |
| Provision (benefit) for income taxes: |  |  |  |  |  |  |
| Current – United States federal |  | $ | 248  |  |  | $ | 147  |  |  | $ | 137  |  |
|             International |  | (1) |  |  | —  |  |  | (5) |  |
| Total current |  | 247  |  |  | 147  |  |  | 132  |  |
| Deferred – United States federal |  | 477  |  |  | 136  |  |  | 338  |  |
|                      International |  | —  |  |  | —  |  |  | 5  |  |
| Total deferred |  | 477  |  |  | 136  |  |  | 343  |  |
| Total provision for income taxes |  | $ | 724  |  |  | $ | 283  |  |  | $ | 475  |  |
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The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows:

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| (Dollars in millions) |  | Years ended December 31, |
|  |  | 2021 |  | 2020 |  | 2019 |
| Tax at statutory rate: |  | $ | 771  |  |  | 21.0  | % |  | $ | 315  |  |  | 21.0  | % |  | $ | 519  |  |  | 21.0  | % |
| Increase (decrease) resulting from: |  |   |  |   |  |  |  |   |  |   |  |   |
| Tax-exempt income from municipal bonds |  | (20) |  |  | (0.5) |  |  | (20) |  |  | (1.3) |  |  | (19) |  |  | (0.8) |  |
| Dividend received exclusion |  | (20) |  |  | (0.5) |  |  | (17) |  |  | (1.1) |  |  | (16) |  |  | (0.6) |  |
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| Other |  | (7) |  |  | (0.3) |  |  | 5  |  |  | 0.3  |  |  | (9) |  |  | (0.4) |  |
| Provision for income taxes |  | $ | 724  |  |  | 19.7  | % |  | $ | 283  |  |  | 18.9  | % |  | $ | 475  |  |  | 19.2  | % |
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 The provision for federal income taxes is based upon the filing of a consolidated income tax return for the company and its domestic subsidiaries within the United States. At December 31, 2021 and 2020 we had no operating or capital loss carryforwards in the United States. As more fully discussed below, Cincinnati Global, has operating loss carryforwards in the United Kingdom.  
As more fully discussed in Note 1, Summary of Significant Accounting Policies, the COVID-19 pandemic outbreak began in mid-March 2020. In response to the pandemic, various stimulus legislation was enacted in 2021 and 2020. We have evaluated the pandemic-related legislation enacted in 2021 and 2020 and believe any impact to our financial statements, as a result of such legislation, is immaterial.  
Unrecognized Tax BenefitsAt December 31, 2021, 2020 and 2019, we had a gross unrecognized tax benefit of $34 million. Additionally, there was no change in the amount for 2021, 2020 or 2019.

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The unrecognized tax benefit liability is carried in other liabilities in the consolidated balance sheets. If recognized, the unrecognized tax benefit liability would affect the effective tax rate in the period of the release. Although no interest and penalties currently are accrued, if incurred, they would be recognized as a component of income tax expense. It is reasonably possible that within the next 12 months, our unrecognized tax benefit could change when the IRS completes its examination of the tax year ended December 31, 2018.   
The statute of limitations for federal tax purposes has closed for tax years ended December 31, 2016 and earlier. However, as a result of certain net operating loss carryback claims we have filed related to the tax year ended December 31, 2017, the IRS has a limited ability to assess tax for the 2015 tax year. In 2019, the IRS began its examination of the tax year ended December 31, 2017 and they have expanded their scope to include tax year ended December 31, 2018. At this time, no adjustments have been proposed. In addition to our IRS filings, we file income tax returns with immaterial amounts in various state jurisdictions and record these amounts in our provision for income taxes for both current and deferred taxes. The statute of limitations for state income tax purposes has closed for tax years ended December 31, 2017 and earlier.  
Cincinnati Financial Corporation - 2021 10-K - Page 159
