INCOME TAXES

12 Months Ended

Dec. 31, 2022

NOTE 6 – INCOME TAXES

For the year ended December 31, 2022, the Company has incurred net losses and therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $30,280 at December 31, 2022, and will expire beginning in the year 2037.

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% and 21% to the net loss before provision for income taxes as follows:

	For the year ended December 31, 2022			For the period from May 19, 2021 (inception) to December 31, 2021
Income tax expense (benefit) at statutory rate		(3,265	)		(3,094	)
Change in valuation allowance		3,265			3,094
Income tax expense		-			-

Net deferred tax assets consist of the following components as of December 31, 2022, and 2021:

	December 31, 2022			December 31, 2021
Gross deferred tax asset		6,359			3,094
Valuation allowance		(6,359	)		(3,094	)
Net deferred tax asset		-			-

The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows:

	For the year ended December 31, 2022			For the period from May 19, 2021 (inception) to December 31, 2021
Statutory Federal Income Tax Rate		21	%		21	%
Non-taxable permanent differences		—			—
Change in valuation allowance		(21	)%		(21	)%
Income tax provision		—			—

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $30,280 for federal income tax reporting purposes could be subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited to use in future years.

The Company has no uncertain tax positions that require the Company to record a liability.

The Company had no accrued penalties and interest related to taxes as of December 31, 2022.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Sound Cave Technology Inc. 10-K