Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Income Taxes

NOTE D – INCOME TAXES

The Company had federal net operating tax loss carry-forwards of approximately $99,000 as of December 31, 2011.  The tax loss carry-forwards are available to offset future taxable income with the federal and state carry-forwards beginning to expire in 2030.
 
The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 35% is as follows:

 
   
 
 
Year Ended
December 31,
2011
    
December 9,
2010
(Inception)
through
December 31,
2010
  
             
Expected income tax benefit at statutory rate of 35%
   $ (31,563 )   $ (2,949 )
Other
     -0-       -0-  
Change in valuation allowance
     31,563       2,949  
Income tax expense (benefit)
   $ -0-     $ -0-  

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes.  Temporary differences, which give rise to a net deferred tax asset, are as follows:

   
December 31,
  
   
2011
    
2010
  
Deferred Tax Assets:
            
Tax benefit of net operating loss carry-forwards
   $ 34,512     $ 2,949  
Less: valuation allowance
     (34,512 )     (2,949 )
Net deferred tax asset
   $ -0-     $ -0-  
 
In 2011 and 2010 the deferred tax valuation allowance increased by $28,614 and $2,949, respectively.  The realization of the tax benefits is subject to the sufficiency of taxable income in future years.  The combined deferred tax assets represent the amounts expected to be realized before expiration.

The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets.  The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits.  As of December 31, 2011 and 2010, the Company established valuation allowances equal to the full amount of the net deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.
 
For the year ended December 31, 2011 and from December 9, 2010 (inception) to December 31, 2010, no amounts have been recognized for uncertain tax positions and no amounts have been recognized related to interest or penalties related to uncertain tax positions. The Company has determined that it is not reasonably likely for the amounts of unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company is currently subject to a three year statute of limitations by major tax jurisdictions.

The Company has not filed tax returns since its inception. The Company is in the process of preparing past tax returns and does not believe that it will be exposed to any significant risk of penalty or forfeiture of net operating losses.