PROVISION FOR INCOME TAXES

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

NOTE 5 - PROVISION FOR INCOME TAXES

Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

The income tax provision (benefit) consists of the following:

	December 31,
	2014			2013
Federal
Current	$	-		$	-
Deferred		(1,894,184)			(1,666,585	)
State and local
Current		-			-
Deferred		-			-
		(1,894,184	)		(1,666,585	)
Change in valuation allowance		1,894,184			1,666,585
Income tax provision (benefit)	$	-		$	-

At December 31, 2014 and 2013, the Company had a net operating loss (“NOL’s”) carry forward in the amount of $5,571,130 and $4,901,721, respectively, available to offset future taxable income. The Company established valuation allowances equal to the full amount of the deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods. The Company has not filed its federal tax returns since inception and therefore, the NOL’s will not be available to offset future taxable income until the tax returns are filed with the respective federal tax authorities.

A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and federal statutory rate for the periods ended December 31, 2014 and 2013 is summarized below.

	2014			2013
Federal statutory rate		(34.0)	%		(34.0)	%
State income taxes, net of federal benefits		0.0			0.0
Valuation allowance		34.0			34.0