INCOME TAXES

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6 – INCOME TAXES

Deferred income tax provisions for the years ended September 30, 2021 and 2020 are summarized below:

	2021			2020
Federal	$	(16,000	)	$	(3,200	)
State		(3,000	)		(600	)
Total deferred		(19,000	)		(3,800	)
Change in valuation allowance		19,000			3,800
Income tax provision	$	-		$	-

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before provision for income taxes. The sources and tax effect of the differences are as follows:

	2021		2020
Income tax provision – federal rate		21.0%		21.0%
State income taxes, net of federal benefit		3.9%		3.9%
Change in valuation allowance		(24.9)%		(24.9)%
		-		-

Significant components of the Company’s deferred tax assets and liabilities as September 30, 2021 and 2020 is as follows:

	2021			2020
Deferred tax assets:
Net operating losses	$	302,000		$	283,000
Total deferred tax asset		302,000			283,000
Valuation allowance		(302,000	)		(283,000	)
Deferred tax asset, net of allowance	$	-		$	-

ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. After consideration of all the evidence, both positive and negative, management has determined that a full valuation allowance at September 30, 2021 and 2020, respectively, is necessary to reduce the deferred tax assets to the amount that is more likely than not to be realized. The change in valuation allowance was an increase of approximately $19,000 and $4,000 for the years ended September 30, 2021 and 2020, respectively.

As of September 30, 2021, we have a net operating loss carry forwards of approximately $1,215,000 (2020: $1,139,000). The loss will be available to offset future taxable income. If not used, these carry forwards will expire in varying amounts through 2038.

There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit our tax returns from 2015 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statement of operations. There have been no income tax related interest or penalties assessed or recorded.

For the years ended September 30, 2021 and 2020 we did not have any interest and penalties associated with tax positions. As of September 30, 2021, we did not have any significant unrecognized uncertain tax positions.