| NOTE 2 - INCOME TAXES | The
Financial Accounting Standards Board (FASB) has issued ASC 740-10 which 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 $403,389 and $370,927 as of December 31, 2018 and December
31, 2017, 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. The schedules below reflect
the Federal tax provision, deferred tax asset and valuation allowance using the new rates adjusted retroactively to December 31,
2017 Deferred
tax assets and the valuation account are as follows:
For
the Years Ended December
31,
2018 2017
Net
operating loss carryforward (at 21%) $ 84,712 $ 77,895
Valuation
allowance (84,712 ) (77,895 )
Deferred
tax asset $ -- $ -- 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,
2018 2017
Federal
tax benefit (at 21%) $ 6,817 $ 6,584
Change
in valuation allowance (6,817 ) 37,560
Effect
of rate change on Deferred Tax Asset -- (44,144 )
$ -- $ -- 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, 2018 and 2017, 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, 2018, 2017, 2016 and
2015. |
