| NOTE 2 - 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 enterprises 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, a valuation 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 $370,927 and $339,574 as of
December 31, 2017 and December 31, 2016, respectively, which may be offset against future taxable income through 2037. No tax
benefit has been reported in the financial statements. The
Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts &
Jobs Act. The schedules below reflect the Federal tax provision, deferred tax asset and valuation allowance using the new rates
adjusted in the period of enactment. Deferred
tax assets and the valuation account are as follows:
For
the Years Ended December
31,
2017 2016
Net
operating loss carryforward (at 21% and 34%) $ 77,895 $ 115,455
Valuation
allowance (77,895 ) (115,455 )
Deferred
tax asset $ 0 $ 0 A
reconciliation of amounts obtained by applying the Federal tax rate to pre-tax income to income tax benefit is as follows:
For
the Years Ended December
31,
2017 2016
Federal
tax benefit (at 21% and 34%) $ 6,584 $ 10,416
Change
in valuation allowance 37,560 (10,416 )
Effect
of rate change on Deferred Tax Asset (44,144 ) 0
$ 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, 2017 and 2016, 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
and 2014. |
