Note 12 - Income Taxes

3 Months Ended

Mar. 31, 2013

Notes

Note 12 - Income Taxes

NOTE 12 – INCOME TAXES

As of March 31, 2013, the Company had net operating loss carry forwards of approximately $12,518,000 that may be available to reduce future years’ taxable income through 2033. 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:

	March 31, 2013	March 31, 2012
Federal income tax benefit attributable to:
Current operations	$       250,580	$          157,300
Less: valuation allowance	(250,580)	(157,300)
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:

	March 31, 2013	December 31, 2012
Deferred tax asset attributable to:
Net operating loss carryover	$       4,396,380	$       4,145,800
Less: valuation allowance	(4,396,380)	(4,145,800)
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.