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Income Taxes
 9 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
Income Taxes

4.  Income Taxes 

 

The provision (benefit) for income taxes for the period ended September 30, 2012 was as follows (assuming a 15% effective tax rate):

 

   2012
    
Current Tax Provision:     
Federal-     
 Taxable income  $—   
      
    Total current tax provision  $—   
      
Deferred Tax Provision:     
Federal-     
 Loss carryforwards  $10,756 
 Change in valuation allowance   (10,756)
      
    Total deferred tax provision  $—   

 

The Company had deferred income tax assets as of September 30, 2012 and December 31, 2011 as follows:

 

   2012  2011
           
 Loss carryforwards  $11,531   $774 
 Less - Valuation allowance   (11,531)   (774)
           
    Total net deferred tax assets  $—     $—   

 

 

 

The Company provided a valuation allowance equal to the deferred income tax assets for periods ended September 30, 2012 and December 31, 2011 because it is not presently known whether future taxable income will be sufficient to utilize the loss carryforwards.

 

As of September 30, 2012, the Company had approximately $76,871 in tax loss carryforwards that can be utilized future periods to reduce taxable income, and expire by the year 2032.

 

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.