Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 6 – INCOME TAXES

As of March 31, 2021, the Company had net operating loss carry forwards of approximately $15.2 million that may be available to reduce its tax liability through tax year 2039. The Company estimates the benefits of this loss carry forward at $3.2 million if it produces sufficient taxable income. No adjustments to the financial statements have been recorded for this potential tax benefit. The Company has no provisions from income tax in 2019, due to current period losses and full valuation allowance on deferred tax assets. 

For the three months ended March 31, 2021 and 2020, a reconciliation of the federal statutory rate of 21% to the Company’s effective tax rate is as follows:

	Three Months Ended March 31, 2021			Three Months Ended March 31, 2020
Expected expense (benefit) (21%)	$	(111,352	)	$	(3,675	)
State income taxes, net of federal benefit		(25,134	)		(830	)
Income tax provision (benefit)		(136,486	)		(4,505	)
Valuation allowance		136,486			4,505
Accrued expense (benefit)	$	—		$	—

The cumulative tax effect at the expected rate of 21% of significant items comprising the Company’s net deferred tax amount is as follows as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Deferred tax asset attributable to:
Net operating loss carryover	$	3,192,079		$	3,080,727
Less: valuation allowance		(3,192,079	)		(3,080,727	)
Net deferred tax asset	$	—		$	—

Tax net operating loss carryforwards may be limited pursuant to the IRS Section 382 in the event of certain ownership changes.