INCOME TAXES

6 Months Ended

Jul. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 9 – INCOME TAXES

There are inherent uncertainties related to the interpretation of tax regulations in the jurisdictions in which the Company transacts business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, as well as changes to, or further interpretations of, regulations. The Company adjusts its income tax expense in the period in which these events occur. If such changes take place, there is a risk that the tax rate may increase or decrease in any period.

The FASB guidance contained in ASC Topic 740, Income Taxes, addresses the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a threshold of “more likely than not” for recognition and derecognition of tax positions taken or expected to be taken in a tax return.

The Company adopted this guidance and is now required to recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being recognized. Additionally, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first financial reporting period in which that threshold is no longer met. Changes in recognition or measurement will be reflected in the period in which the change in judgment occurs.

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The Company’s income tax filings are subject to audit by various taxing authorities. The Company’s open audit periods are three years for federal and four years for California. In evaluating the Company’s tax provisions and accruals, future taxable income, and the reversal of temporary differences, interpretations, and tax planning strategies are considered. The Company had no material adjustments to its liabilities for unrecognized income taxes under the guidelines of the ASC Topic 740 for uncertainty in income taxes and believes their estimates are appropriate based on current facts and circumstances.

The components of provision for income taxes are:

		July 31, 2022		January 31, 2022
Income taxes (payable)/receivable currently:
Federal	$	(38,640)	$	(210,923)
State		(800)		-
Total income taxes payable currently		(39,440)		(210,923)
Deferred income tax
Federal
Deferred tax benefit (liability) – end of period/year		(11,408)		(6,181)
Valuation allowance		-		-
Total deferred tax benefit (liability) – end of period/year		(11,408)		(6,181)
Deferred tax benefit (liability) – beginning of period/year		(6,181)		93,929
Valuation allowance		-		(93,929)
Total deferred tax benefit (liability) – beginning of period/year		(6,181)		-
Total federal deferred tax benefit (liability)		(5,227)		(6,181)
State
Deferred tax benefit (liability) – end of period/year	$	-		-
Deferred tax benefit (liability) – beginning of period/year		-		-
Total state deferred tax benefit (liability)		-		-

Total deferred tax income (expense)		(5,227)	(6,181)
Provision for income tax benefit (expense)	$	(44,667)	(217,104)
Deferred tax asset (liability) - long-term	$	(11,408)	(6,181)

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