NOTE D -INCOME TAXES
Deferred income taxes reflect the tax effects of temporary timing differences between carrying amounts of assets and liabilities reflected on the financial statements and the amounts used for income tax purposes. The tax effects of temporary differences and net operating loss carry forwards that give rise to the deferred tax assets. The Company had ($4,898) in NOL carry forward from 2012 that it utilized in 2013, 2015 and 2016.
Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years.
The following table presents the principal reasons for the differences between the Company’s effective tax rate and the United States statutory income tax rate.
| 2017 | 2016 | 2015 | ||||||||||
| Federal income tax at statutory rate per books | $ | (541 | ) | $ | 330 | $ | 1,736 | |||||
| Change in valuation allowance | (541 | ) | — | — | ||||||||
| Net operating loss | — | (330 | ) | (1,736 | ) | |||||||
| Federal income tax per tax return | $ | — | $ | — | $ | — | ||||||
| Effective income tax rate | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
The Company’s Forms 1120, U.S. Corporation Income Tax Returns, for the years ending December 31, 2017, 2016, and 2015 are subject to examination, by the IRS, generally for three years after they are filed.