INCOME TAXES

12 Months Ended

Mar. 31, 2015

Notes to Financial Statements

NOTE 5 - INCOME TAXES

The Company’s deferred tax asset relates to net operating losses that may be carried forward to future years. At March 31, 2015, the Company has available net operating losses of $654,868 and $471,821 for federal and state income taxes, respectively, that expire from 2019 to 2035 For the years ended March 31, 2015 and 2014, approximately $0 and $81,000 in federal net operating losses have expired, respectively. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry-forwards will expire unused. Accordingly, the potential tax benefits of the loss carry-forward are offset by a valuation allowance of the same amount. The net change in the valuation allowance resulted in a decrease of $71,463 and a decrease of $10,193 for the years ended March 31, 2015, and 2014, respectively. The Company’s net operating losses were limited by Internal Revenue Code Section 382 by $297,548.

The Company’s deferred tax asset and valuation allowance as of March 31, 2015 and 2014 are as follows:

	March 31
	2015			2014
Net Operating Losses	$	154,516		$	225,980
Valuation Allowance		(154,516	)		(225,980	)
	$	–		$	–

The Company’s provision for federal and state income taxes for the years ended March 31, 2015 and 2014 consist of the following:

	March 31
	2015			2014
Current Tax Benefit	$	(29,703	)	$	(17,478	)
Benefit of net operating loss		29,703			17,478
Net tax provision	$	–		$	–

The Company’s effective tax rate differed from the federal statutory income tax rate for the years ended March 31, 2015 and 2014 as follows:

	March 31
	2015			2014
Federal statutory rate		34.0	%		34.0	%
State tax, net of federal tax effect		4.95	%		4.95	%
Valuation allowance		(38.95	)%		(38.95)	%
Effective tax rate		0.0	%		0.0	%

As of March 31, 2015 and 2014, the Company does not believe that it has taken any tax positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next twelve months. The Company’s income tax returns are subject to examination by the appropriate taxing jurisdictions. As of March 31, 2015, the Company’s income tax returns generally remain open for examination for three years from the date filed with each taxing jurisdiction.