INCOME TAXES

3 Months Ended

Mar. 31, 2017

INCOME TAXES

INCOME TAXES

NOTE 8 - INCOME TAXES

As of March 31, 2017, the Company had net operating loss carry forwards for income tax reporting purposes of approximately $9,000 that may be offset against future taxable income through 2034. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. The net deferred tax liability as of March 31, 2017 was $344,000 and is reflected in within long-term liabilities in the accompanying balance sheet.

The Company is subject to income taxes in the U.S. federal jurisdiction, various state jurisdictions and certain other jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the relaxed tax laws and regulations and require significant judgement to apply. The Company is not subject to U.S. federal, state and local tax examinations by tax authorities for the years 2013 and prior.

If the Company were to subsequently record an unrecognized tax benefit, associated penalties and tax related interest expense would be recorded as a component of income tax expense.

The provision for income taxes for the three months ended March 31, 2017 and 2016 was calculated based on the estimated annual effective rate of 34% and 34 % for the full 2017 and 2016 calendar years respectively, adjusted for an income tax benefit from the expected utilization of net operating loss carryforwards.

The income tax provision for the periods ended March 31, 2017 and 2016 consists of:

	2017		2016
Current:
Federal	$	-	$	-
Deferred:
Federal		128,000		-
Income Tax Provision	$	128,000	$	-