The provision for income taxes for the twelve months ended December 31, 2016 and 2015 was as follows (assuming a 15% effective tax rate):
| Year ended December 31, 2016 |
Year ended December 31, 2015 |
|||||||
| Current Tax Provision: | ||||||||
| Federal-State-Local | $ | — | $ | — | ||||
| Total current tax provision | $ | — | $ | — | ||||
| Deferred Tax Provision: | ||||||||
| Loss carry-forwards | (5,250 | ) | — | |||||
| Change in valuation allowance | 5,250 | — | ||||||
| Total deferred tax provision | $ | — | $ | — |
The Company had deferred income tax assets as follows:
| December 31, 2016 | December 31, 2015 | |||||||
| Loss carry-forwards | $ | (8,436 | ) | $ | 3,186 | |||
| Less - valuation allowance | 8,436 | (3,186 | ) | |||||
| Total net deferred tax assets | $ | — | $ | — | ||||
The Company provided a valuation allowance equal to the deferred income tax assets for period ended December 31, 2016 because it is not presently known whether future taxable income will be sufficient to utilize the loss carry-forwards.
As of December 31, 2016, the Company had approximately $56,237 in tax loss carry-forwards that can be utilized future periods to reduce taxable income, and expire by the year 2036.
The Company did not identify any material uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits.
The federal income tax returns of the Company are subject to examination by the IRS, generally for three years after they are filed. The tax returns for year end 2014, 2015 and 2016 are still subject to examination.