NOTE 5 - INCOME TAXES

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

NOTE 5 - INCOME TAXES

NOTE 5 - INCOME TAXES

At December 31, 2020, the Company had federal and state net operating loss carry forwards of approximately $45,000,000 that expire in various years through the year 2040.

Due to net operating loss carry forwards and operating losses, there is no provision for current federal or state income taxes for the years ended December 31, 2020 and 2019.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.

The Company’s deferred tax asset at December 31, 2020 consists of net operating loss carry forwards calculated using federal and state effective tax rates equating to approximately $17,131,179 less a valuation allowance in the amount of approximately $17,131,179. Because of the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased by approximately $338,288 for the year ended December 31, 2020 and increased by approximately $240,419 for the year ended December 31, 2019.

The Company’s total deferred tax asset as of December 31, 2020 and 2019 are as follows: 

	2020			2019
Net operating loss carry forwards		17,131,179			16,792,921
Valuation allowance		(17,131,179	)		(16,792,921	)
Net deferred tax asset		—			—

The reconciliation of income taxes computed at the federal and state statutory income tax rate to total income taxes for the years ended December 31, 2020 and 2019 is as follows:  

	2020			2019
Income tax computed at the federal statutory rate		21	%		21	%
Income tax computed at the state statutory rate		5	%		5	%
Valuation allowance		(26	)%		(26	)%
Total deferred tax asset		—			—

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the Tax Act) was enacted into law and the new legislation contains several key tax provisions that affected us, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax asset and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date.