3. Income Taxes

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

3. Income Taxes

The Company utilizes the liability method of accounting for income taxes. Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting basis and the tax basis of the assets and liabilities and are measured using enacted tax rates and laws that will be in effect, when the differences are expected to reverse. An allowance against deferred tax assets is recognized, when it is more likely than not, that such tax benefits will not be realized.

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 September 30, 2014, deferred taxes amounted to approximately $21,000, off-set by a 100% valuation allowance.

The Company provides for income taxes for the period ended September 30, 2014 is as follows:

Current provision
Income tax provision (benefit) at statutory rate	$	(23,300	)
State income tax expense (benefit), net of federal benefit		0
Subtotal		(23,300	)
Valuation allowance		23,300
	$	---

Under the Internal Revenue Code of 1986, as amended, these losses can be carried forward twenty years. As of September 30, 2014 the Company has net operating loss carry forwards of approximately $23,300, which begin to expire in 2032. The Company does not taken any uncertain tax positions, however, has open tax years subject to audit by the Internal Revenue Services, for the years beginning in 2012.