Note 6: Income Taxes
The Company did not have any temporary differences for the period ended December 31, 2016 and 2015.
As of December 31, 2016, the Company’s net operating loss carryforward was $183,528. The federal and state net operating loss carryforwards will expire at various dates beginning in 2031, if not utilized. The Company’s deferred tax assets as of December 31, 2016 and 2015 were $79,411 and $41,008, respectively. The potential income tax benefit of these losses have been offset by a full valuation allowance.
Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization.
The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2013 through 2016. The Company recognizes interest and penalties related to income taxes in income tax expense. The Company had incurred no penalties and interest for the years ended December 31, 2016 and 2015.