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Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Income Tax, Policy (Policies)
 3 Months Ended
Mar. 31, 2016
Policies  
Income Tax, Policy

 

Income Taxes

The Company accounts for income taxes under SFAS No. 109 (now contained in FASB Codification Topic 740-10-25, Accounting for Uncertainty in Income Taxes), which requires the asset and liability approach to accounting for income taxes.  Under this method, deferred tax assets and liabilities are measured based on differences between financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that are expected to be in effect when differences are expected to reverse. As of March 31, 2016, we had a net operating loss carry-forward of approximately $(4,789,717) and a deferred tax asset of approximately $1,645,872 using the statutory rate of 34%. The deferred tax asset may be recognized in future periods, not to exceed 20 years.  However, due to the uncertainty of future events we have booked valuation allowance of $(1,645,872).  FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  At March 31, 2016 the Company had not taken any tax positions that would require disclosure under FASB ASC 740.

 

March 31, 2016

December 31, 2015

Deferred Tax Asset

   $                 1,645,872 

   $                 1,731,293 

Valuation Allowance

                    (1,645,872)

                    (1,731,293)

Deferred Tax Asset (Net)

$                            -

$                            -

 

We are subject to taxation in the U.S. and the states of California and Utah.  Further, the Company currently has no open tax years’ subject to audit prior to December 31, 2011.  The Company is current on its federal and state tax returns.