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Income taxes
 12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
6. Income taxes

 

The provision for income taxes differs from the amount obtained by applying the Federal income tax rate of 34% to income before income taxes. The difference relates to the following items:

 

    2014   2013
Statutory tax rate   34%   34%
         
Expected tax benefit $ (80,000) $ (77,000)
Benefit of losses not recognized   80,000   77,000
         
Tax provision (benefit) as reported $ 0 $ 0

 

The components of deferred income taxes at December 31, 2014 are as follows:
         
    2014   2013
         
Deferred tax assets:        
Loss carry-forwards $ 2,700,000 $ 2,500,000
Valuation allowance   (2,700,000)   (2,500,000)
    0   0
Deferred tax liabilities:        
Property and equipment   0   0
         
Net deferred taxes $ 0 $ 0
         

 

At December 31, 2014, the Company had net operating loss carryforwards of approximately $8,357,000 which expire beginning in 2015.

 

Utilization of the Company’s loss carryforwards is dependent on realizing taxable income. Deferred tax assets for these carryforwards have been reduced by a valuation allowance up to an amount equal to estimated deferred tax liability.

 

The Company is no longer subject to income tax examinations by tax authorities for years before 2011. The Company is not currently the subject of any income tax examinations by any tax authorities.

 

Based upon a review of its income tax filing positions, the Company believes that its positions would be sustained upon an audit and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded. The Company recognizes interest related to income taxes as interest expense and penalties as operating expenses.