INCOME TAXES

12 Months Ended

Mar. 31, 2019

Notes to Financial Statements

NOTE 4 - INCOME TAXES

The Company’s deferred tax asset relates to net operating losses that may be carried forward to future years. At March 31, 2019, the Company has available net operating losses of $521,810 and $693,603 for federal and state income taxes, respectively, that expire from 2020 to 2038. For the years ended March 31, 2019 and 2018, $0 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 Company’s decrease in valuation allowance of $4,336 $18,297 during the years ended March 31, 2019 and 2018, respectively, were recorded to offset the deferred tax expense of the Company’s tax losses for those years. The deferred tax expense incurred during the years ended March 31, 2019 and 2018 was attributable to the changed in the federal statutory rate which impacted the deferred tax asset associated with the Company’s net operating losses that can be utilized to offset future taxable income of the Company.

The Company’s deferred tax asset and valuation allowance as of March 31, 2019 and 2018 were as follows:

	March 31
	2019			2018
Net Operating Losses	$	170,163		$	174,500
Valuation Allowance		(170,163	)		(174,500	)
	$	–		$	–

The Company’s provision for federal and state income taxes for the years ended March 31, 2019 and 2018 consisted of the following:

	March 31
	2019			2018
Current Tax Benefit	$	-		$	-
Deferred Tax Expense		4,337			18,297
Decrease in Valuation Allowance		(4,337	)		(18,297	)
Net tax provision	$	0-		$	0-

The Company’s effective tax rate differed from the federal statutory income tax rate for the years ended March 31, 2019 and 2018 as follows:

	March 31
	2019			2018
Federal statutory rate		21.0	%		25.0	%
State tax, net of federal tax effect		5.53	%		4.95	%
Valuation allowance	(26.53		%)	(29.95		%)
Effective tax rate		0.0	%		0.0	%

As of March 31, 2019 and 2018, 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, 2019, the Company’s income tax returns generally remain open for examination for three years from the date filed with each taxing jurisdiction.