INCOME TAXES

12 Months Ended

Mar. 31, 2025

NOTE 10 – INCOME TAXES

The following is a reconciliation of the provision for income taxes at the U.S. Federal income tax rate to the income reflected in the Statement of Operations:

	March 31, 2025			March 31, 2024
Tax at statutory tax rate		21.00	%		21.00	%
State taxes		6.98	%		6.98	%
Other permanent items		—			—
Change in valuation allowance		-27.98	%		-27.98	%
Income tax expense		—			—

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of March 31, 2025 and 2024, are as follows:

	March 31, 2025			March 31, 2024
Deferred tax assets:
Net operating loss carry forward	$	974,451		$	664,164
Total gross deferred tax assets		974,451			664,164
Less: valuation allowance		(974,451	)		(664,164	)
Net deferred tax assets	$	—		$	—

Deferred income taxes are provided for the tax effects of transactions reported in the financial statements and consist of deferred taxes related primarily to differences between the bases of certain assets and liabilities for financial and tax reporting. The deferred taxes represent the future tax return consequences of those differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled.

As of March 31, 2025 and 2024, the Company had accumulated net operating loss carryforwards of approximately $4,502,000 and $3,341,000, respectively, for U.S. federal and Nevada income tax purposes available to offset future taxable incomes. These losses carryforwards will begin to expire in the year ending March 31, 2032, subject to IRS limitations, including change in ownership. Losses after 2017 do not expire. The Company periodically evaluates the likelihood of the realization of deferred tax assets and adjusts the carrying amount of the deferred tax assets by a valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including expectations of future taxable income or loss, the carryforward periods available to us for tax reporting purposes, and other relevant factors.

Based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company has determined that it was more likely than not that its deferred tax assets would not be realized at March 31, 2025 and 2024, respectively. Accordingly, the Company has recorded a valuation allowance for 100% of its cumulative deferred tax assets. The change in valuation allowance during fiscal 2025 was an increase of $310,287.

In the ordinary course of business, the Company’s income tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessment by these taxing authorities. Accordingly, the Company believes that it is more likely than not that it will realize the benefits of tax positions it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with FASB ASC 740. Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of March 31, 2025, tax years 2024, 2023, 2022, and 2021 remain open for examination by the Internal Revenue Service and the Nevada Division of Revenue. The Company has received no notice of audit from the Internal Revenue Service or the Nevada Division of Revenue for any of the open tax years.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

BlueOne Card, Inc. 10-K