Reconciliation between the expected federal income tax rate and the actual tax rate is as follows:

	Year Ended December 31,
	2019			2018

Federal statutory tax rate		21	%		21	%
State tax, net of federal benefit		6	%		6	%
Total tax rate		27	%		27	%
Allowance		(27	%)		(27	%)
Effective tax rate		-	%		-	%

The following is a summary of the deferred tax assets:

	Year Ended December 31,
	2019			2018

Net operating loss carryforwards	$	2,434,000			2,319,000
Accrued compensation		-
Deferred tax asset		2,434,000			2,319,000
Valuation allowance		(2,434,000	)		(1,846,000	)
Net deferred tax asset	$	-		$	-

The Company has no tax provision for any period presented due to our history of operating losses. As of December 31, 2018, the Company had estimated net operating loss carry forwards of approximately $9,014,000 that may be available to reduce future years’ taxable income through 2032 subject to Section 382 limitations. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as management has determined that their realization is not likely to occur and accordingly, the Company has recorded a valuation allowance for the full value of the deferred tax asset relating to these tax loss carry-forwards. Additionally, the Company has not filed tax returns, therefore the potential realizability of this loss in future periods is indeterminable.

The Company adopted accounting rules which address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under these rules, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. These accounting rules also provide guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of December 31, 2017 no liability for unrecognized tax benefits was required to be recorded.