v3.22.4
NOTE 8 - INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Notes  
NOTE 8 - INCOME TAXES

NOTE 8 – INCOME TAXES

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

The reconciliation of income tax computed at the Federal statutory rate to the provision (benefit) for income taxes from continuing operations is as follows:

 

 

 

Years Ended 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Federal Taxes (credits) at statutory rates

 

$

(127,700)

 

 

$

(77,000)

 

State and local taxes, net of Federal benefit

 

 

(29,800)

 

 

 

(18,200)

 

Change in valuation allowance

 

 

157,500

 

 

 

95,200

 

 

 

$

-

 

 

$

-

 

 

Components of deferred tax assets are as follows:

 

 

 

Years Ended

 

 

December 31, 2022

 

 

December 31, 2021

Deferred Tax Assets;

 

 

 

 

 

Net operating loss carryforwards

 

$

71,400

 

 

$

57,900

Related party accrual

 

 

107,700

 

 

 

69,000

Payroll accrual

 

 

327,700

 

 

 

275,700

Total Deferred Tax Assets

 

 

506,800

 

 

 

402,600

Valuation Allowance

 

 

(506,800)

 

 

 

(402,600)

 

 

 

 

 

 

 

 

Deferred Tax Assets

 

$

-

 

 

$

-

 

 

The Company has approximately $275,000 net operating loss carryforwards that are available to reduce future taxable income. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax assets for every period because it is more likely than not that all of the deferred tax assets will not be realized.

 

The Company files income tax returns in the U.S. federal jurisdiction, and the state of Arizona.

 

The Company adopted the provisions of ASC 740. Management evaluated the Company’s tax positions and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. The Company has no significant adjustments as a result of the implementation of ASC 740.