| Income Taxes | NOTE 3 - INCOME TAXES The Financial Accounting Standards Board (FASB)
has issued FASB ASC 740-10 (Prior authoritative literature: Financial Interpretation No. 48, "Accounting for Uncertainty in
Income Taxes - An Interpretation of FASB Statement No. 109 (FIN 48). FASB ASC 740-10 clarifies the accounting for uncertainty
in income taxes recognized in an enterprise's financial statements in accordance with prior literature FASB Statement No. 109,
Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax
position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than- not threshold
is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result
of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition
and measurement standards established by FASB ASC 740-10. Deferred taxes are provided on a liability
method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards
and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences
between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will
not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date
of enactment. The Company currently has no issues creating
timing differences that would mandate deferred tax expense. Net operating losses would create possible tax assets in future years.
Due to the uncertainty of the utilization of net operating loss carry forwards, an evaluation allowance has been made to the extent
of any tax benefit that net operating losses may generate. A provision for income taxes has not been made due to net operating
loss carry-forwards of $254,311 and $226,869 as of December 31, 2016 and December 31, 2015, respectively, which may be offset
against future taxable income through 2033. No tax benefit has been reported in the financial statements. Deferred tax asset and the valuation account
are as follows at December 31, 2016 and 2015:
For the Years Ended
2016 2015
Net operating loss carryforward (at 34%) $ 86,466 $ 77,135
Valuation allowance (86,466 ) (77,135 )
Deferred tax asset $ $ The change in the valuation allowance was $9,331
during the year ended December 31, 2016. A reconciliation of amounts obtained by applying
the Federal tax rate of 34% to pre-tax income to income tax benefit is as follows:
For the Years Ended
2016 2015
Federal tax provision (at 34%) $ 9,331 $ 9,156
Change in valuation allowance (9,331 ) (9,156 )
$ 0 $ 0 The Company did not have any tax positions
for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease
within the next 12 months. The Company includes interest and penalties
arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of December
31, 2016 and 2015, the Company had no accrued interest or penalties related to uncertain tax positions. The tax years that remain subject to examination
by major taxing jurisdictions are those for the years ended December 31, 2016, 2015, 2014 and 2013. |
