Income Taxes

12 Months Ended

Jan. 31, 2021

INCOME TAXES

The provision (benefit) for income taxes consists of the following:


	Years ended January 31,
	2021		2020
Current
Federal	$	—	$	—
State	—		—
Deferred
Federal	(19,355)		(18,414)
State	(3,244)		21,015
Change in valuation allowance	22,599		(2,601)
	$	—	$	—

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before the provision for income taxes. The sources and tax effects of the difference are as follows:


	Years ended January 31,
	2021		2020

Income tax at statutory rate	21.00	%	21.00	%
State income taxes, net of federal benefit	3.52		3.52

Impact of State rate change	—		(27.49)
Change in valuation allowance	(24.52)		2.97
Total	0.00	%	0.00	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and tax liabilities are as follows:


	January 31,
	2021		2020

Net operating loss	$	756,121	$	733,522
Gross deferred tax assets:	756,121		733,522
Less: valuation allowance	(756,121)		(733,522)
Net deferred tax asset	$	—	$	—

As of January 31, 2021 the Company had net operating loss carryforwards of approximately $3,084,000 which may be used to offset future taxable income. $2,904,000 expires through the year 2039, while $180,000 carries over indefinitely. Pursuant to Code Sec. 382 of the Internal Revenue Code, the utilization of net operating loss carryforwards may be limited as a result of a cumulative change in stock ownership of more than 50% over a three year period. The effect of such limitation on the utilization of net operating loss carryforwards has not been determined. Due to changes in control the availability of the net operating loss carryforwards to offset future taxable income may be limited. The tax years for the years ended January 31, 2018 through the current year remain open for federal income tax audits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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