INCOME TAXES

12 Months Ended

Mar. 31, 2021

NOTE 3 – INCOME TAXES

The Company did not provide any current or deferred U.S. federal income tax provision or benefit for the year ended March 31, 2021 or 2020 due to the operating losses experienced during the years ended March 31, 2021 and 2020. When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. The Company provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward period. Effective December 22, 2017 a new tax bill was signed into law that reduced the federal income tax rate for corporations from 35% to 21%. The change in tax rate reduced the 2017 net operating loss carry forward deferred tax assets by approximately $6,700.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended March 31, 2021 or 2020 applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet. All tax returns for the Company remain open.

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:

	March 31,
	2021			2020
Income tax provision at the federal statutory rate		21.00	%		21.00	%
Deferred tax rate changes - US income tax reform		-	%		-	%
Change in valuation allowance		(21.00	%)		(21.00	%)
Effect on operating losses		0.00	%		0.00	%

Changes in net deferred tax assets consist of the following:

	March 31,
	2021			2020
Net operating loss carry forward	$	236,839		$	485,402
Valuation allowance		(236,839	)		(485,402	)
Net deferred tax asset	$	-		$	-

Federal net operating losses incurred prior to the year ended March 31, 2017 are subject to certain limitations and begin to expire in 2037. Net federal operating loss carry forwards incurred after the year ended March 31, 2017 may be carried forward indefinitely. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Tribus Enterprises, Inc. 10-K