Income Taxes

3 Months Ended

Jun. 30, 2012

Income Taxes

Income Tax Disclosure [Text Block]

 (7) Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is considered to be more likely than not that a deferred tax asset will not be realized, a valuation allowance is provided for the excess.

Effective January 1, 2012, the Company revoked its “S” election status, and is now subject to income tax on its net taxable income. As of June 30, 2012, the Company has a net operating loss carryover of approximately $112,000 available to offset future income for income tax reporting purposes, which will expire in 2032, if not previously utilized. As of June 30, 2012, the Company has a deferred tax asset consisting solely of its taxable net operating loss of approximately $29,000. The Company has established a valuation allowance offsetting its deferred tax asset in full as management believes that it is more likely than not that the net operating loss will not be utilized.

The Company's policy regarding income tax interest and penalties is to expense those items as general and administrative expense and to identify them for tax purposes.  During the three months ended June 30, 2012 and 2011, income tax interest and penalties in the statement of operations totaled $0 and $0, respectively.  The Company files income tax returns in the U.S. federal jurisdiction and the state of California. The Company is subject to income tax examination by tax authorities for 2009, 2010 and 2011.