INCOME TAXES

12 Months Ended

Sep. 30, 2012

At September 30, 2012, the Company had gross deferred tax assets of approximately $141,834. The Company determined that it is not more-likely-than-not that such asset will be realized, and as such has established a full valuation allowance at September 30, 2012. The Company evaluates its ability to realize its deferred tax assets each period and adjusts the amount of its valuation allowance, if necessary. If there is an ownership change, as defined under Internal Revenue Code Section 382, the use of operating loss and credit carry-forwards may be subject to limitation on use.

The Company’s loss before income taxes of $200,284 is comprised entirely of operations in the United States. The effective tax rate of 0% differs from the statutory United States federal income tax rate of 34% due primarily to the valuation allowance. The valuation allowance has increased by $75,039 for the year ending September 30, 2012 from the period January 19, 2011 to September 30, 2011.

The reconciliation of the provision for income taxes for the year ended September 30, 2012, and the period January 19 (inception) to September 30, 2011, and the amount computed by applying the federal income tax rate to net loss is as follows:

	September 30,
	2012			2011
Tax provision (benefit) at statutory rate		(67,800	)		(60,352	)
State taxes, net of federal expense		(7,239	)		(6,443	)
Change of valuation allowance		75,039			66,795

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

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+ Details

ChatChing Inc. 10-K