Income Taxes

12 Months Ended

Dec. 31, 2019

(6) Income Taxes

The provision (benefit) for income taxes for the year ended December 31, 2019 and 2018, was as follows (assuming a 21% effective tax rate in 2019 and 21% in 2018):

	2019			2018
Loss carryforwards	$	1,331,691		$	750,409
Less- Valuation allowance		(1, 331,691	)		(750,409	)
Total net deferred tax assets	$	-		$	-

The Company provided a valuation allowance equal to the deferred income tax assets for the year ended December 31, 2019 and 2018, because it is not presently known whether future taxable income will be sufficient to utilize the loss carryforwards.

As of December 31, 2019, and December 31, 2018, the Company had approximately $6,341,386 and $3,573,378, respectively, in tax loss carryforwards that can be utilized in future periods to reduce taxable income, and expire by the year 2030.

The Company did not identify any material uncertain tax positions that will be filed. The Company did not recognize any interest or penalties for unrecognized tax benefits during the year ended December 31, 2019 and 2018.

The Company intends to file income tax returns in the United States. All tax years are closed by expiration of the statute of limitations.

CANNAPOWDER, INC. 10-K