Income Tax

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Tax Disclosure [Text Block]

NOTE 8 - INCOME TAX

Deferred income taxes  reflect  the  net  tax  effects of temporary differences between the carrying amounts of assets and liabilities  for financial statement purposes  and the amounts used for income tax purposes. Significant  components of the Company's  deferred  tax liabilities and assets as of December 31, 2011 and 2010 are as follows:

Deferred tax assets:	2011	2010
Net operating loss carryforwards	$5,246,818	$4,356,667
Stock issued for services	80,000	250,000
Impairment Loss	-	534,645
Net deferred tax asset	$5,326,818	$5,141,312

A reconciliation of income taxes computed  at  the statutory rate to the income tax amount recorded as follows:

	2011	2010
Tax at statutory rate (35%)	1,864,386	1,799,459
Increase in valuation allowance	(1,864,386)	(1,799,459)
Net deferred tax asset	-	-

Reconciliation between the statutory rate and the  effective  tax  rate  is as follows at December 31, 2011 and 2010:

	2011	2010
Federal statutory tax rate	(35)%	(35)%
Permanent difference and other	35%	35%

At  December 31, 2011, the Company had federal net operating loss ("NOL") carry forwards  of approximately $5,326,818.  Federal NOLs could, if unused, begin to expire in 2021.

The valuation  allowance  for  deferred  tax assets as of December 31, 2011 was $5,326,818.