NOTE H – INCOME TAX
The Company provides for income taxes under (now included under Accounting Standards Codification (ASC), 740), Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.
ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all the deferred tax assets will not be realized. For Federal income tax purposes, the Company has net operating loss carry forwards that expire through 2030. The net operating loss as of December 31, 2016, is approximately $278,000 and as of December 31, 2015 is $56,000 approximately
No tax benefit has been reported in the financial statements because after evaluating our own potential tax uncertainties, the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited. The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net loss before provision for income taxes for the following reasons:
| Deferred Tax Asset: | | December 31, 2016 | | December 31, 2015 | |
| NOL Carry Forward | | $ | 107,000 | | $ | 19,000 | |
| Valuation Allowances | | $ | (107,000) | | $ | (19,000) | |
| Deferred Tax Asset | | $ | - | | $ | - | |
The Company is not obligated to pay State Income Taxes because it is a Nevada corporation.