NOTE E – INCOME TAXES
At December 31, 2016, the Company had net operating loss carry forwards of approximately $9.3 million, which expire between 2016 and 2030.
Forms 1120, U.S, Corporation Income Tax Returns, for the years ending December 31, 2016, 2015, 2014 are subject to examination, by the IRS, generally for three years after they are filed.
| The following table presents the principal reasons for the difference between the Company's effective |
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| tax rate and the United States statutory income tax rate. |
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| 2016 |
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| 2015 |
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| 2014 |
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| Earned income tax at statutory rate |
| $ | 7 |
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| $ | 0 |
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| $ | 0 |
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| Net operating loss utilization |
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| (7 | ) |
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| 0 |
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| 0 |
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| Deferred tax asset from NOL carry forwards |
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| 3,263 |
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| 3,270 |
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| 2,927 |
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| Valuation allowance |
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| (3,263 | ) |
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| (3,270 | ) |
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| (2,927 | ) |
| Reported income tax expense (benefit) |
| $ | 0 |
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| $ | 0 |
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| $ | 0 |
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| Effective income tax rate |
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| 0.00 | % |
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| 0.00 | % |
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| 0.00 | % |
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| The Company believes that it is more likely than not the benefit of NOL carryforwards will not be realized. Therefore, a valuation allowance on the related deferred tax assets has been recorded. | ||||||