Note 10 - Income Taxes

3 Months Ended

Jun. 30, 2012

Note 10 - Income Taxes:

Note 10 - Income Taxes

NOTE 10 – INCOME TAXES

As of June 30, 2012, the Company had net operating loss carry forwards of approximately $9,985,600 that may be available to reduce future years’ taxable income through 2022. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The provision for Federal income tax consists of the following:

	June 30, 2012			June 30, 2011
Federal income tax benefit attributable to:
Current operations	$	292,800		$	178,900
Less: valuation allowance		(292,800	)		(178,900	)
Net provision for Federal income taxes	$	0		$	0

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

	June 30, 2012			December 31, 2011
Deferred tax asset attributable to:
Net operating loss carryover	$	3,395,100		$	3,102,700
Less: valuation allowance		(3,395,100	)		(3,102,700	)
Net deferred tax asset	$	0		$	0

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.