Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 10 – INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

At December 31, 2020, the Company had a net operating loss (NOL) carryforward of approximately $11,940,000. NOL’s generated prior to 2018, will expire during the years 2033 to 2039. NOL’s generated after 2018 have an indefinite period of use but are subject to annual limitations. Realization of any portion of the NOL at December 31, 2020, is not considered more likely than not by management; accordingly, a valuation allowance has been established for the full tax amount, which as of December 31, 2020, was $2,508,219. The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position.

A reconciliation of the Company’s effective tax rate to statutory rates for the years ended December 31, 2020 and 2019 is as follows:

	Year Ended December 31,
	2020			2019
Pre- tax loss	$	(765,844	)	$	(1,409,696	)
U.S. federal corporate income tax rate		21	%		21	%
Expected U.S. income tax credit		(160,827	)		(296,036	)
Permanent changes		3,104			24,916
Change in valuation		157,723			271,120
Effective expense	$	-		$	-

The Company had deferred tax assets as follows:

	Year Ended December 31,
	2020			2019
Tax loss carryforward	$	2,508,219		$	2,350,496
Valuation allowance		(2,508,219	)		(2,350,496	)
Net deferred tax assets	$	-		$	-

The Company’s NOL carryforwards may be significantly limited under the Internal Revenue Code (“IRC”). NOL carryforwards are limited under Section 382 when there is a significant ownership change as defined in the IRC. During the year ended December 31, 2017, and previous years, the Company may have experienced such ownership changes, which could pose limitations.