INCOME TAXES

12 Months Ended

Dec. 31, 2021

INCOME TAXES

NOTE 8 - INCOME TAXES

NOTE 8 – INCOME TAXES

The provision (benefit) for income taxes consists of the following:

	December 31,
	2021		2020
Federal	$	-	$	-
State		-		-
Deferred		-		-
Total	$	-	$	-

The difference between the actual income tax rate versus the tax computed at the Federal Statutory rate follows:

	December 31,
	2021			2020
Federal rate		21	%		21	%
Change in tax rate		-			-
State net of federal		4	%		4	%
Return to provision and deferred adjustments		0	%		10	%
Valuation allowance		(25)	%		(35)	%
Effective income tax rate		0	%		0	%

The Company did not have any material uncertain tax positions. The Company’s policy is to recognize interest and penalties accrued related to unrecognized benefits as a component income tax expense (benefit). The Company did not recognize any interest or penalties, nor did it have any interest or penalties accrued as of December 31, 2021 and 2020.

The federal income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations for the years ended December 31, 2021 and 2020 due to the following:

	December 31,
	2021			2020
Salaries and wages	$	45,621		$	82,878
Interest expense, related party		11,905			26,011
Selling, general and administrative		6,247			6,622
Professional and legal fees		30,981			3,817
Stock compensation		-			224,021
Loss on impairment		-			12,455
Net operating loss		580,253			224,449
Total		675,007			580,253
Valuation allowance		(675,007	)		(580,253	)
Deferred tax asset, net	$	-		$	-

In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. The Company considers the scheduled reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, the Company believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the years ended December 31, 2021 and December 31, 2020, the valuation allowance increased by $94,754 and $122,919, respectively.

The tax periods ending December 31, 2021, 2020, 2019, 2018 and 2017 respectively, are open for examination. The Company has federal and state net operating loss carryforwards for the years ending December 31, 2021 and 2020 of $980,330 and $885,576, which do not expire.

On March 27, 2020, the CARES Act was enacted in response to COVID-19 pandemic. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period which the new legislation is enacted. The CARES Act made various tax law changes including among other things (i) increasing the limitation under Section 163(j) of the Internal Revenue Code of 1986, as amended (the “IRC”) for 2019 and 2020 to permit additional expensing of interest (ii) enacting a technical correction so that qualified improvement property can be immediately expensed under IRC Section 168(k), (iii) making modifications to the federal net operating loss rules including permitting federal net operating losses incurred in 2018, 2019, and 2020 to be carried back to the five preceding taxable years in order to generate a refund of previously paid income taxes and (iv) enhancing the recoverability of alternative minimum tax credits. Given the Company’s full valuation allowance position and capitalization of all costs, the CARES Act did not have an impact on the consolidated financial statements.