3. Income Taxes

9 Months Ended

Dec. 31, 2012

Notes to Financial Statements

3. Income Taxes

Income Tax

We follow ASC 740, Income Taxes. We record deferred tax assets and liabilities for future income tax consequences that are attributable to differences between financial statement carrying amounts of assets and liabilities and their income tax bases. The measurement of deferred tax assets and liabilities is based on enacted tax rates that are expected to apply to taxable income in the year when settlement or recovery of those temporary differences is expected to occur. We recognize the effect on deferred tax assets and liabilities of any change in income tax rates in the period that includes the enactment date. We record a valuation allowance to reduce deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized.

A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. Although we believe the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. We had no uncertain tax positions as of December 31, 2012.

The Company has not recognized operating losses generated from operations to date, based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of December 31, 2012, deferred taxes amounted to approximately $4,700, off-set by a 100% valuation allowance.

The Company provides for income taxes, for the periods ended December 31,, is as follows:

	2012
Current provision
Income tax provision (benefit) at statutory rate	$	(4,700	)
State income tax expense (benefit), net of federal benefit		0
Subtotal		(4,700	)
Valuation allowance		4,700
	$	---

As of December 31, 2012 the Company has a net operating loss carry forward of approximately $4,700, which begins to expire in 2032.