v3.22.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 5. INCOME TAXES

 

The components of the Company’s deferred tax asset are as follows:

 

   December 31,
2021		   December 31,
2020		 
Net operating loss carry forward  $63,669   $29,138 
Valuation allowance   (63,669)   (29,138)
Net deferred tax asset  $
-
   $
-
 

 

The Company had a net operating loss carryforward of approximately $1,164,420 and $999,988 for the years ended December 31, 2021 and 2020, of which $269,575 carryforward indefinitely and $894,845 carryforward 20 years. The net operating losses may be subject to limitations under Internal Revenue Code Section 382 should there be a 50% ownership change as determined under regulations.

 

The reconciliation of income tax rate at the U.S. statutory rate of 21% to the Company’s effective tax rate is as follows:

 

   2021   2020 
US Statutory rate   21%   21%
Valuation allowance   -21%   -21%
Income tax provision   
-
    
-
 

 

The Company files income tax returns in the United States. The Company has not filed its U.S. federal return for the year ended December 31, 2021 in 2022, and as a result the U.S. federal returns for 2021, 2020 and 2019 will be considered as open tax years subject to examination. No tax returns are currently under examination by any tax authorities. The Company has not accrued any additional interest or penalties for the delinquency of outstanding tax returns as the Company has incurred net losses in those periods still outstanding.

 

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 the entire deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized.