NOTE 4. INCOME TAXES

12 Months Ended

Dec. 31, 2022

Notes

NOTE 4. INCOME TAXES

NOTE 4. INCOME TAXES

The Company follows ASC 740, Income Taxes, which requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company does not have any material unrecognized tax benefits as of December 31, 2022 or 2021.

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

	2022	2021
Deferred tax asset:
Net operating loss carryover	$947,624	$377,280
Valuation allowance	(947,624)	(377,280)
	$-	$-

A reconciliation of amounts obtained by applying Federal tax rates of 21% to pre-tax income to income tax benefit is as follows:

	2022	2021
Book income	$(828,826)	$(497,711)
Stock for services	258,482	25,200
Stock options	-	63,579
Accrued liabilities – related party (unissued stock compensation)	-	70,000
Change in valuation allowance	570,344	338,932
Income tax expense	$-	$-

The Company’s tax returns are subject to audit for the years ended December 31, 2022 and 2021.