Long-Term Care and Retirement Security Act of 2008

H.R.32: To provide for a credit for certain health care benefits in determining the minimum wage. H.R.126: To amend the Internal Revenue Code of 1986 to allow loans from individual retirement plans for qualified small business capital assets. H.R.298: To amend the Internal Revenue Code of 1986 to allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to the next plan year. H.R.527: To help American families save, invest, and build a better future, and for other purposes. H.R.640: To amend the Internal Revenue Code of 1986 to permit financial institutions to determine their interest expense deduction without regard to tax-exempt bonds issued to provide certain small loans for health care or educational purposes. H.R.666: To amend the Internal Revenue Code of 1986 to require that amounts paid for employer-provided coverage under accident or health plans be included on W-2 Forms. H.R.892: To establish and provide for the treatment of Individual Development Accounts, and for other purposes. H.R.1672: To amend the Internal Revenue Code of 1986 to deny qualified dividend income treatment to certain foreign dividends. H.R.1748: To amend the Internal Revenue Code of 1986 to expand workplace health incentives by equalizing the tax consequences of employee athletic facility use. H.R. 2163: to amend the Internal Revenue Code of 1986 to expand incentives for saving. H.R. 2205: to amend the Internal Revenue Code of 1986 to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments. H.R.2834: To amend the Internal Revenue Code of 1986 to treat income received by partners for performing investment management services as ordinary income received for the performance of services. H.R.3221: A bill to provide needed housing reform and for other purposes. H.R. 3475: to amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5 million, to adjust such amount for inflation, to repeal the one-year termination of the estate tax, and for other purposes. H.R. 3694: to amend the Internal Revenue Code of 1986 to provide corporate alternative minimum tax reform. H.R. 3717: to amend the Internal Revenue Code of 1986 to provide a tax credit to employers for the costs of implementing wellness programs, and for other purposes. H.R. 3923: to amend the Internal Revenue Code of 1986 to provide for the treatment of certain foreign nonqualified deferred compensation. H.R. 3947: to amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements. H.R. 3970: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. H.R. 3975: to amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals. H.R. 3996: to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. H.R. 4172: to amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3.5 million. H.R. 4195: to amend the Internal Revenue Code of 1986 to make technical corrections.H.R. 4235: to amend the Internal Revenue Code of 1986 to restore the estate tax, to repeal the carryover basis rule, to reduce estate tax rates by 20 percent, to increase the unified credit against estate and gift taxes to the equivalent of a $3 million exclusion and to provide an inflation adjustment of such amount, and for other purposes. H.R.5031: To amend the Internal Revenue Code of 1986 to extend relief from the alternative minimum tax. H.R.5105: To amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. H.R.5455: To amend title 11 of the United States Code to make nondischargeable debts for personal injuries that result in permanent disability. H.R.5559: To amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term care needs. H.R.6049: To amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes. H.R.6275: To amend the Internal Revenue Code of 1986 to provide individuals temporary relief from the alternative minimum tax, and for other purposes. H. R. 6499: To amend the Internal Revenue Code of 1986 to reform the estate and gift tax. H.R.6899: To advance the national security interests of the United States by reducing its dependency on oil through renewable and clean, alternative fuel technologies while building a bridge to the future through expanded access to Federal oil and natural gas resources, revising the relationship between the oil and gas industry and the consumers who own those resources and deserve a fair return from the development of publicly owned oil and gas, ending tax subsidies for large oil and gas companies, and facilitating energy efficiencies in the building, housing, and transportation sectors, and for other purposes. S.26: A bill to amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes. S.58: A bill to amend the Internal Revenue code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment. S.96: A bill to amend the Internal Revenue Code of 1986 to ensure a fairer and simpler method of taxing controlled foreign corporations of United States shareholders, to treat certain foreign corporations managed and controlled in the United States as domestic corporations, to codify the economic substance doctrine, and to eliminate the top corporate income tax rate, and for other purposes. S.102: A bill to amend the Internal Revenue Code of 1986 to extend and expand relief from the alternative minimum tax and to repeal the extension of the lower rates for capital gains and dividends for 2009 and 2010. S.141: A bill to amend the Internal Revenue Code of 1986 to permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts, and to provide for a deduction for contributions to education savings accounts. S.2239: to amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. S.2374: to amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. S.2547: A bill to amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. S.2741: to amend the Internal Revenue Code of 1986 to provide for disability savings accounts. S.3049: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. S.3125: To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. S.3278: to amend the Internal Revenue Code of 1986 to provide that no loan may be made from a qualified employer plan using a credit card or other intermediary and to limit the number of loans that may be made from a qualified employer plan to a participant or beneficiary. S.3284: A bill to amend the Internal Revenue Code of 1986 to permanently extend the estate tax as in effect in 2009, and for other purposes. S.3335: A bill to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. S.3557: to encourage savings, promote financial literacy, and expand opportunities for young adults by establishing KIDS Accounts. S. 3717: to amend the Internal Revenue Code of 1986 to allow reimbursement from flexible spending accounts for certain dental products.

Client expense: $515,000 · Firm income: Not reported

Government targets: Centers For Medicare and Medicaid Services (CMS), Commerce, Dept of (DOC), HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, State, Dept of (DOS), Treasury, Dept of, U.S. Trade & Development Agency (USTDA), U.S. Trade Representative (USTR)

See attachment. RET Fourth Quarter Report 2008 H.R. 46 - Small Business Tax Fairness and Simplification Act. Issue: Long Term Care permitted to be offered in cafeteria plans and FSA. H.R. 1424 Emergency Economic Stabilization Act of 2008. Issue: executive com restrictions and 401(k) asset recovery. H.R. 2205/ S 1010 Retirement Security for Life Act. Issue:Tax Incentive for Non Qualified Annuities H.R. 2419 Farm Bill Extension Act. Issue: Roth treatment for 457 contracts. H.R. 2831 Lilly Ledbetter Fair Pay Act. Issue: civil penalty impact on retirement plans. H.R. 2582 Qualified Long-Term Care Fairness Act of 2007. Issue: above the line deduction for LTC. H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007. Issue: Retirement plan fee disclosure. H.R. 3361 -To make technical corrections related to the Pension Protection Act of 2006. Issue: technical corrections to PPA. H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act. Issue: military access to retirement monies. H.R. 5160 Small Business Add Value for Employees Act of 2008. Issue: expand pension coverage. H.R. 5559 The Long Term Care and Retirement Security Act of 2008. Issue: LTC in cafeteria and FSA and above the line deductions for LTC premiums. H.R. 6143 Pension Protection Act ERISA Amendments of 2008. Issue: Retirement plan modifications. H.R. 6237 The Tax Relief for Long Term Care Act of 2008. Issue: tax credit for LTC insurance premiums. H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections. Issue: Retirement plan modifications H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC and annuity clarification; Tax free exchange provisions for LTC. H.R. 7327 Worker, Retiree and Employer Recovery Act. Issue: Retirement plan modification H. Con Res 431 Supporting the Goals and Ideals of a Long Term Awareness Week. Issue: LTC. S. 158 - Access to Affordable Health Care Act. Issue: above the line deduction for long term care insurance. S. 555 - Simple Cafeteria Plan Act. Issue: Long term care insurance permitted to be offered in cafeteria plans and FSA. S. 1087 Fair Pay Act. Issue: civil penalty impact on retirement plans. S. 1288 - Women's Retirement Act of 2007. Issue: federal tax treatment of annuities. S. 1693 The Wired for Healthcare Quality Act. Issue: affects of LTC ERISA preemption. S. 1758 Community Living Assistance Services and Supports Act. Issue: reform of LTC financing. S. 1809/ H.R. 3088 Long-Term Care Act of 2007. Issue: distributions from retirement plans should not be included in gross income if used to pay for LTC premiums. S.1974- the Pension Protection Technical Corrections Act of 2007. Issue: technical corrections to PPA. S. 2121 Caregiver Assistance and Relief Effort Act of 2007. Issue: above the line deduction for LTC. S. 2337/H.R. 3363 Long Term Care Affordability and Security Act of 2007. Issue: allows long term care insurance to be offered in employer sponsored cafeteria plans and FSA. S. 2473 Defined Contribution Fee Disclosure Act. Issue: retirement plan fee disclosure. S. 2794 The Senior Investor Protection Act of 2008. Issue: sales to seniors of annuity products. S. 3278/ HR 6708 - A bill which would limit the use of 401(k) debit cards and limit withdrawals from 401(k) plans. Issue: limit of withdrawals on retirement plans. S. 3327 Empowered at Home Act of 2008. Issue: Allows above the line tax deduction for LTC premiums. Allows LTC to be offered in cafeteria/ FSA plans. S. 3952 - Automatic IRA Act of 2007. Issue: expand pension coverage.

Tax issues - S 897, Alzheimer's Family Assistance Act of 2007; S 504, Long-Term Care Trust Account Act of 2007; HR 2639, Promoting Health for Future Generations Act of 2007; HR 2582, Qualified Long-term Care Fairness Act of 2007; HR 914, Tax Equity and Affordability Act of 2007; S 397, Tax Equity and Affordability Act of 2007; HR 2302, Health Insurance Affordability Act of 2007; S 1809, Long-Term Care Act of 2007; HR 3088, Long-Term Care Act of 2007; HR 3234, HSA Improvement and Expansion Act of 2007; HR 3306, Flexible Health Savings Act of 2007; HR 3363, Long-Term Care Affordability and Security Act of 2007; S 2337, Long-Term Care Affordability and Security Act of 2007; HR 3920, Trade and Globalization Assistance Act of 2007; HR 5559, Long-Term Care and Retirement Security Act of 2008; HR 5719, Taxpayer Assistance and Simplification Act of 2008; S 2835, To amend the Internal Revenue Code of 1986 to allow the purchase of health insurance with pre-tax dollars; HR 6237, Tax Relief for Long-Term Care Act of 2008; HR 7148, Medicare Beneficiary Freedom to Choose Act of 2008; S 3626, Family and Retirement Health Investment Act of 2008; HR 7095, Comprehensive Long-Term Care Support Act of 2008.

Client expense: Not reported · Firm income: $100,000

HR 46 - Small Business Tax Fairness and Simplification Act. Issue: Long Term Care permitted to be offered in cafeteria plans and FSA. S 158 - Access to Affordable Health Care Act. Issue: above the line deduction for long term care insurance. S. 555 - Simple Cafeteria Plan Act. Issue: Long term care insurance permitted to be offered in cafeteria plans and FSA. H.R. 2205/ S 1010 Retirement Security for Life Act. Issue: Tax Incentive for Non Qualified Annuities S. 1288 - Women's Retirement Act of 2007. Issue: federal tax treatment of annuities. S. 3952 - Automatic IRA Act of 2007. Issue: expand pension coverage. H.R.3361 -To make technical corrections related to the Pension Protection Act of 2006. Issue: technical corrections to PPA. S.1974- the Pension Protection Technical Corrections Act of 2007. Issue: technical corrections to PPA. H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007. Issue: Retirement plan fee disclosure. S. 2337/H.R. 3363 Long Term Care Affordability and Security Act of 2007. Issue: allows long term care insurance to be offered in employer sponsored cafeteria plans and FSA. S. 1809/ H.R. 3088 Long-Term Care Act of 2007. Issue: distributions from retirement plans should not be included in gross income if used to pay for LTC premiums. H.R. 3765 Defined Contribution Plan Fee Transparency Act of 2007. Issue: retirement plan fee disclosure. S. 1758 Community Living Assistance Services and Supports Act. Issue: reform of LTC financing. H.R. 2582 Qualified Long-Term Care Fairness Act of 2007. Issue: above the line deduction for LTC. S. 2121 Caregiver Assistance and Relief Effort Act of 2007. Issue: above the line deduction for LTC. S. 2473 Defined Contribution Fee Disclosure Act. Issue: retirement plan fee disclosure. S. 1087 Fair Pay Act. Issue: civil penalty impact on retirement plans. H.R. 2831 Lilly Ledbetter Fair Pay Act. Issue: civil penalty impact on retirement plans. H.R. 2419 Farm Bill Extension Act. Issue: Roth treatment for 457 contracts. H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act. Issue: military access to retirement monies. H.R. 5160 Small Business Add Value for Employees Act of 2008. Issue: expand pension coverage. H.R. 5559 The Long Term Care and Retirement Security Act of 2008. Issue: LTC in cafeteria and FSA and above the line deductions for LTC premiums. S. 2794 The Senior Investor Protection Act of 2008. Issue: sales to seniors of annuity products. H.R. 6237 The Tax Relief for Long Term Care Act of 2008. Issue: tax credit for LTC insurance premiums. S. 1693 The Wired for Healthcare Quality Act. Issue: affects of LTC ERISA preemption. H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections. Issue: Retirement plan modifications H.R. 6143 Pension Protection Act ERISA Amendments of 2008. Issue: Retirement plan modifications. H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC and annuity clarification; Tax free exchange provisions for LTC. S. 3278/ HR 6708 - A bill which would limit the use of 401(k) debit cards and limit withdrawals from 401(k) plans. Issue: limit of withdrawals on retirement plans. H.R. 1424 Emergency Economic Stabilization Act of 2008. Issue: executive com restrictions and 401(k) asset recovery. H.R. 3765 Defined Contribution Plan Fee Transparency Act of 2007. Issue: retirement plan fee disclosure. S. 3327 Empowered at Home Act of 2008. Issue: Allows above the line tax deduction for LTC premiums. Allows LTC to be offered in cafeteria/ FSA plans. H. Con Res 431 Supporting the Goals and Ideals of a Long Term Awareness Week. Issue: LTC. H.R. 7327 Worker, Retiree and Employer Recovery Act. Issue: Retirement plan modification

S897 Alzheimer's Family Assistance Act of 2007 S504 Long Term Care Trust Accounts Act of 2007 S555 Simple Cafeteria Plan Act of 2007 HR493 Genetic Information Non-Discrimination Act of 2007 HR3363 Long Term Care Affordability and Security Act of 2007 S2337 Long Term Care Affordability and Security Act of 2007 HR5559 Long Term Care Retirement and Security Act of 2008

Client expense: $1,070,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of

See attachment. RET Third Quarter Report 2008 HR 46 - Small Business Tax Fairness and Simplification Act. Issue: Long Term Care permitted to be offered in cafeteria plans and FSA. H.R. 1424 Emergency Economic Stabilization Act of 2008. Issue: executive com restrictions and 401(k) asset recovery. H.R. 2205/ S 1010 Retirement Security for Life Act. Issue:Tax Incentive for Non Qualified Annuities H.R. 2419 Farm Bill Extension Act. Issue: Roth treatment for 457 contracts. H.R. 2582 Qualified Long-Term Care Fairness Act of 2007. Issue: above the line deduction for LTC. H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007. Issue: Retirement plan fee disclosure. H.R. 3361 -To make technical corrections related to the Pension Protection Act of 2006. Issue: technical corrections to PPA. H.R. 3765 Defined Contribution Plan Fee Transparency Act of 2007. Issue: retirement plan fee disclosure. H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act. Issue: military access to retirement monies. H.R. 5160 Small Business Add Value for Employees Act of 2008. Issue: expand pension coverage. H.R. 5559 The Long Term Care and Retirement Security Act of 2008. Issue: LTC in cafeteria and FSA and above the line deductions for LTC premiums. H.R. 6143 Pension Protection Act ERISA Amendments of 2008. Issue: Retirement plan modifications. H.R. 6237 The Tax Relief for Long Term Care Act of 2008. Issue: tax credit for LTC insurance premiums. H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections. Issue: Retirement plan modifications H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC and annuity clarification; Tax free exchange provisions for LTC. S. 158 - Access to Affordable Health Care Act. Issue: above the line deduction for long term care insurance. S. 555 - Simple Cafeteria Plan Act. Issue: Long term care insurance permitted to be offered in cafeteria plans and FSA. S. 1288 - Women's Retirement Act of 2007. Issue: federal tax treatment of annuities. S. 1693 The Wired for Healthcare Quality Act. Issue: affects of LTC ERISA preemption. S. 1758 Community Living Assistance Services and Supports Act. Issue: reform of LTC financing. S. 1809/ H.R. 3088 Long-Term Care Act of 2007. Issue: distributions from retirement plans should not be included in gross income if used to pay for LTC premiums. S. 1974- the Pension Protection Technical Corrections Act of 2007. Issue: technical corrections to PPA. S. 2121 Caregiver Assistance and Relief Effort Act of 2007. Issue: above the line deduction for LTC. S. 2337/H.R. 3363 Long Term Care Affordability and Security Act of 2007. Issue: allows long term care insurance to be offered in employer sponsored cafeteria plans and FSA. S. 2473 Defined Contribution Fee Disclosure Act. Issue: retirement plan fee disclosure. S. 2794 The Senior Investor Protection Act of 2008. Issue: sales to seniors of annuity products. S. 3278/ HR 6708 - A bill which would limit the use of 401(k) debit cards and limit withdrawals from 401(k) plans. Issue: limit of withdrawals on retirement plans. S. 3327 Empowered at Home Act of 2008. Issue: Allows above the line tax deduction for LTC premiums. Allows LTC to be offered in cafeteria/ FSA plans. S. 3952 - Automatic IRA Act of 2007. Issue: expand pension coverage. H. Con Res 431 Supporting the Goals and Ideals of a Long Term Awareness Week. Issue: LTC.

HR 1328/ S 1200, "Indian Health Care Improvement Act Reauthorization Bill," regarding sections 403 and 407 of the House version and section 415 of the Senate version; HR 4460/ S 2477, "Health Care Choice Act," monitoring activity regarding all provisions; HR 506, "The Health Partnership Through Creative Federalism Act," monitoring activity regarding all provisions; S 1758, "Community Living Assistance Services and Supports Act," regarding all provisions; S 1693, "The Wired for Health Care Quality Act," regarding all provisions; S 504 "Long-Term Care Trust Account Act of 2007", regarding all provisions; HR 2582, "Qualified Long-Term Care Fairness Act of 2007", regarding all provisions; S 1758, "Community Living Assistance Services and Supports Act", regarding all provisions; HR 5559 "Long-Term Care Retirement and Security Act of 2008", regarding all provisions; HR 493, "Genetic Nondiscrimination Act of 2007", regarding all provisions; S 334 "Healthy Americans Act", regarding all provisions; HR 6210/ S2795, "SHOP Act", regarding all provisions; HR 6357, "PRO(TECH)T Act of 2008", regarding all provisions.

Client expense: $910,000 · Firm income: Not reported

HR 3200/ S 40, "National Insurance Act," regarding all provisions; HR 3363/ S 2337, "Long-Term Care Affordability and Security Act of 2008," regarding all provisions; HR 1810/ S 1366, "Consolidated Returns," regarding all provisions; S 504, "Long-Term Care Trust Account Act of 2007", regarding all provisions; HR 2582, "Qualified Long-Term Care Fairness Act of 2007", regarding all provisions; S 1758 "Community Living Assistance Services and Supports Act", regarding all provisions; HR 5559, "Long-Term Care and Security Act of 2008", regarding all provisions; HR 6237, "Tax Relief for Long-Term Care Act of 2008", regarding all provisions; HR 5543/S 1288, "Women's Retirement Security Act of 2008", regarding all provisions; HR 5840, "Insurance Information Act of 2008, regarding all provisions.

Client expense: $910,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, U.S. Trade Representative (USTR)

Tax issues - S 897, Alzheimer's Family Assistance Act of 2007; S 504, Long-Term Care Trust Account Act of 2007; HR 2639, Promoting Health for Future Generations Act of 2007; HR 2582, Qualified Long-term Care Fairness Act of 2007; HR 914, Tax Equity and Affordability Act of 2007; S 397, Tax Equity and Affordability Act of 2007; HR 2302, Health Insurance Affordability Act of 2007; S 1809, Long-Term Care Act of 2007; HR 3088, Long-Term Care Act of 2007; HR 3234, HSA Improvement and Expansion Act of 2007; HR 3306, Flexible Health Savings Act of 2007; HR 3363, Long-Term Care Affordability and Security Act of 2007; S 2337, Long-Term Care Affordability and Security Act of 2007; HR 3920, Trade and Globalization Assistance Act of 2007; HR 5559, Long-Term Care and Retirement Security Act of 2008; HR 5719, Taxpayer Assistance and Simplification Act of 2008; S 2835, To amend the Internal Revenue Code of 1986 to allow the purchase of health insurance with pre-tax dollars; HR 6237, Tax Relief for Long-Term Care Act of 2008; HR 7148, Medicare Beneficiary Freedom to Choose Act of 2008; S 3626, Family and Retirement Health Investment Act of 2008; HR 7095, Comprehensive Long-Term Care Support Act of 2008.

Client expense: Not reported · Firm income: $100,000

TAX (Tax) (Legislative): H.R. 914: Tax Equity and Affordability Act (Ryan); H.R. 2302: Health Insurance Affordability Act (King); H.R. 2582: Qualified Long-term Care Fairness Act (Brown-Waite) (continued) (TAX (Tax) Legislative continued) H.R. 2639: Promoting Health for Future Generations Act (provisions relating to HSAs) (Boustany); H.R. 3088: Long-Term Care Act (Terry); H.R. 3234: HSA Improvement and Expansion Act (Cantor); H.R. 3306: Flexible Health Savings Act (Royce); H.R. 3363: Long-Term Care Affordability and Security Act (Pomeroy); H.R. 3920: Trade and Globalization Assistance Act (provisions relating to health care tax credits, COBRA continuation coverage, health insurance reforms) (Rangel); H.R. 5559: Long-Term Care and Retirement Security Act (Putnam); H.R. 5719: Taxpayer Assistance and Simplification Act (HSA provision); H.R. 6237: Tax Relief for Long-Term Care Act (Courtney); H.R. 7095: Comprehensive Long-Term Care Support (Sandlin) (provisions relating to LTC tax deduction); H.R. 7148: Beneficiary Freedom to Choose Act (Johnson) (provisions relating to HSA improvements); S. 397: Tax Equity and Affordability Act (Martinez); S. 504: Long-Term Care Trust Account Act (Smith); S. 897: Alzheimer's Family Assistance Act (Mikulski); S. 1809: Long-Term Care Act (Thune); S. 2237: Long-Term Care Affordability and Security Act (Grassley); S. 2835: Health Care Equity Act (DeMint); and S. 3626: Family Retirement and Health Investment Act (Hatch) (provisions relating to HSA improvements). TAX (Tax) Regulatory: Issues relating to Health Savings Accounts; issues relating to application of rules regarding excise tax reporting; and issues relating to withholding of government contract payments.

Client expense: $1,630,000 · Firm income: Not reported

H.R.32: To provide for a credit for certain health care benefits in determining the minimum wage. H.R.126: To amend the Internal Revenue Code of 1986 to allow loans from individual retirement plans for qualified small business capital assets. H.R.298: To amend the Internal Revenue Code of 1986 to allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to the next plan year. H.R.527: To help American families save, invest, and build a better future, and for other purposes. H.R.640: To amend the Internal Revenue Code of 1986 to permit financial institutions to determine their interest expense deduction without regard to tax-exempt bonds issued to provide certain small loans for health care or educational purposes. H.R.666: To amend the Internal Revenue Code of 1986 to require that amounts paid for employer-provided coverage under accident or health plans be included on W-2 Forms. H.R.892: To establish and provide for the treatment of Individual Development Accounts, and for other purposes. H.R.1672: To amend the Internal Revenue Code of 1986 to deny qualified dividend income treatment to certain foreign dividends. H.R.1748: To amend the Internal Revenue Code of 1986 to expand workplace health incentives by equalizing the tax consequences of employee athletic facility use. H.R. 2163: to amend the Internal Revenue Code of 1986 to expand incentives for saving. H.R. 2205: to amend the Internal Revenue Code of 1986 to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments. H.R.2834: To amend the Internal Revenue Code of 1986 to treat income received by partners for performing investment management services as ordinary income received for the performance of services. H.R.3221: A bill to provide needed housing reform and for other purposes. H.R. 3475: to amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5 million, to adjust such amount for inflation, to repeal the one-year termination of the estate tax, and for other purposes. H.R. 3694: to amend the Internal Revenue Code of 1986 to provide corporate alternative minimum tax reform. H.R. 3717: to amend the Internal Revenue Code of 1986 to provide a tax credit to employers for the costs of implementing wellness programs, and for other purposes. H.R. 3923: to amend the Internal Revenue Code of 1986 to provide for the treatment of certain foreign nonqualified deferred compensation. H.R. 3947: to amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements. H.R. 3970: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. H.R. 3975: to amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals. H.R. 3996: to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. H.R. 4172: to amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3.5 million. H.R. 4195: to amend the Internal Revenue Code of 1986 to make technical corrections.H.R. 4235: to amend the Internal Revenue Code of 1986 to restore the estate tax, to repeal the carryover basis rule, to reduce estate tax rates by 20 percent, to increase the unified credit against estate and gift taxes to the equivalent of a $3 million exclusion and to provide an inflation adjustment of such amount, and for other purposes. H.R.5031: To amend the Internal Revenue Code of 1986 to extend relief from the alternative minimum tax. H.R.5105: To amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. H.R.5455: To amend title 11 of the United States Code to make nondischargeable debts for personal injuries that result in permanent disability. H.R.5559: To amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term care needs. H.R.6049: To amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes. H.R.6275: To amend the Internal Revenue Code of 1986 to provide individuals temporary relief from the alternative minimum tax, and for other purposes. H. R. 6499: To amend the Internal Revenue Code of 1986 to reform the estate and gift tax. H.R.6899: To advance the national security interests of the United States by reducing its dependency on oil through renewable and clean, alternative fuel technologies while building a bridge to the future through expanded access to Federal oil and natural gas resources, revising the relationship between the oil and gas industry and the consumers who own those resources and deserve a fair return from the development of publicly owned oil and gas, ending tax subsidies for large oil and gas companies, and facilitating energy efficiencies in the building, housing, and transportation sectors, and for other purposes. S.26: A bill to amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes. S.58: A bill to amend the Internal Revenue code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment. S.96: A bill to amend the Internal Revenue Code of 1986 to ensure a fairer and simpler method of taxing controlled foreign corporations of United States shareholders, to treat certain foreign corporations managed and controlled in the United States as domestic corporations, to codify the economic substance doctrine, and to eliminate the top corporate income tax rate, and for other purposes. S.102: A bill to amend the Internal Revenue Code of 1986 to extend and expand relief from the alternative minimum tax and to repeal the extension of the lower rates for capital gains and dividends for 2009 and 2010. S.141: A bill to amend the Internal Revenue Code of 1986 to permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts, and to provide for a deduction for contributions to education savings accounts. S.2239: to amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. S.2374: to amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. S.2547: A bill to amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. S.2741: to amend the Internal Revenue Code of 1986 to provide for disability savings accounts. S.3049: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. S.3125: To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. S.3278: to amend the Internal Revenue Code of 1986 to provide that no loan may be made from a qualified employer plan using a credit card or other intermediary and to limit the number of loans that may be made from a qualified employer plan to a participant or beneficiary. S.3284: A bill to amend the Internal Revenue Code of 1986 to permanently extend the estate tax as in effect in 2009, and for other purposes. S.3335: A bill to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. S.3557: to encourage savings, promote financial literacy, and expand opportunities for young adults by establishing KIDS Accounts.

See attachment. RET Second Quarter Report 2008 H.R. 2 - Fair Minimum Wage Act H.R. 46 - Small Business Tax Fairness and Simplification Act H.R. 914 - Tax Equity and Affordability Act H.R. 976 - Small Business Tax Relief Act H.R. 1807 - Alzheimers Family Assistance Act H.R. 2205/ S. 1010 - Tax Incentive for Non Qualified Annuities H.R. 2419 Farm Bill Extension Act H.R. 2582 Qualified Long-Term Care Fairness Act of 2007 H.R. 3088 Long-Term Care Act of 2007 H.R. 3185 - The 401(k) Fair Disclosure for Retirement Security Act of 2007 H.R. 3361 - To make technical corrections related to the Pension Protection Act of 2006 H.R. 3363 Long Term Care Affordability and Security Act of 2007 H.R. 4839 Tax Technical Corrections H.R. 5160 Small Business Add Value for Employees Act of 2008 H.R. 5559 The Long Term Care and Retirement Security Act of 2008 H.R. 6143 Pension Protection Act ERISA Amendments of 2008 H.R. 6237 The Tax Relief for Long Term Care Act of 2008 H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections H.R. (Concurrent Resolution) 133 - Supporting the Goals of the Long Term Care Awareness Week S. 555 - Simple Cafeteria Plan Act S. 897 - Alzheimers Family Assistance Act S. 1288 - Women's Retirement Act of 2007 S. 1974 - The Pension Protection Technical Corrections Act of 2007 S. 1809 Long-Term Care Act of 2007 S. 2337 - Long Term Care Affordability and Security Act of 2007 S. 3952 - Automatic IRA Act of 2007 S. 1758 Community Living Assistance Services and Supports Act S. 2121 Caregiver Assistance and Relief Effort Act of 2007 S. 2268 Long-Term Care Insurance Integrity Act of 2007 S. 2473 Defined Contribution Fee Disclosure Act S. 2794 The Senior Investor Protection Act of 2008 S. 1693 The Wired for Healthcare Quality Act Final 403(b) Regulations/Revenue Proceeding 2007-71 - issues related to timing relief, clarification of transition relief, grandfathering, effective date and restrictions on immediate redeemability. Department of Labor - Regulation on annual reporting obligations 29 CFR 2920-103-1; 72 FR 221 Notice of adoption of revisisions to annual return/report forms. Department of Labor - Final Revised Form 5500 (2009) - New Fee Reporting Rules - request changes to final rules.

See attachment. RET Third Quarter Report 2008 HR 46 - Small Business Tax Fairness and Simplification Act. Issue: Long Term Care permitted to be offered in cafeteria plans and FSA. H.R. 1424 Emergency Economic Stabilization Act of 2008. Issue: executive com restrictions and 401(k) asset recovery. H.R. 2205/ S 1010 Retirement Security for Life Act. Issue:Tax Incentive for Non Qualified Annuities H.R. 2419 Farm Bill Extension Act. Issue: Roth treatment for 457 contracts. H.R. 2582 Qualified Long-Term Care Fairness Act of 2007. Issue: above the line deduction for LTC. H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007. Issue: Retirement plan fee disclosure. H.R. 3361 -To make technical corrections related to the Pension Protection Act of 2006. Issue: technical corrections to PPA. H.R. 3765 Defined Contribution Plan Fee Transparency Act of 2007. Issue: retirement plan fee disclosure. H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act. Issue: military access to retirement monies. H.R. 5160 Small Business Add Value for Employees Act of 2008. Issue: expand pension coverage. H.R. 5559 The Long Term Care and Retirement Security Act of 2008. Issue: LTC in cafeteria and FSA and above the line deductions for LTC premiums. H.R. 6143 Pension Protection Act ERISA Amendments of 2008. Issue: Retirement plan modifications. H.R. 6237 The Tax Relief for Long Term Care Act of 2008. Issue: tax credit for LTC insurance premiums. H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections. Issue: Retirement plan modifications H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC and annuity clarification; Tax free exchange provisions for LTC. S. 158 - Access to Affordable Health Care Act. Issue: above the line deduction for long term care insurance. S. 555 - Simple Cafeteria Plan Act. Issue: Long term care insurance permitted to be offered in cafeteria plans and FSA. S. 1288 - Women's Retirement Act of 2007. Issue: federal tax treatment of annuities. S. 1693 The Wired for Healthcare Quality Act. Issue: affects of LTC ERISA preemption. S. 1758 Community Living Assistance Services and Supports Act. Issue: reform of LTC financing. S. 1809/ H.R. 3088 Long-Term Care Act of 2007. Issue: distributions from retirement plans should not be included in gross income if used to pay for LTC premiums. S. 1974- the Pension Protection Technical Corrections Act of 2007. Issue: technical corrections to PPA. S. 2121 Caregiver Assistance and Relief Effort Act of 2007. Issue: above the line deduction for LTC. S. 2337/H.R. 3363 Long Term Care Affordability and Security Act of 2007. Issue: allows long term care insurance to be offered in employer sponsored cafeteria plans and FSA. S. 2473 Defined Contribution Fee Disclosure Act. Issue: retirement plan fee disclosure. S. 2794 The Senior Investor Protection Act of 2008. Issue: sales to seniors of annuity products. S. 3278/ HR 6708 - A bill which would limit the use of 401(k) debit cards and limit withdrawals from 401(k) plans. Issue: limit of withdrawals on retirement plans. S. 3327 Empowered at Home Act of 2008. Issue: Allows above the line tax deduction for LTC premiums. Allows LTC to be offered in cafeteria/ FSA plans. S. 3952 - Automatic IRA Act of 2007. Issue: expand pension coverage. H. Con Res 431 Supporting the Goals and Ideals of a Long Term Awareness Week. Issue: LTC.

S897 Alzheimer's Family Assistance Act of 2007 S504 Long Term Care Trust Accounts Act of 2007 S555 Simple Cafeteria Plan Act of 2007 HR493 Genetic Information Non-Discrimination Act of 2007 HR3363 Long Term Care Affordability and Security Act of 2007 S2337 Long Term Care Affordability and Security Act of 2007 HR5559 Long Term Care Retirement and Security Act of 2008

Client expense: $640,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Labor, Dept of (DOL), SENATE

HR 46 - Small Business Tax Fairness and Simplification Act. Issue: Long Term Care permitted to be offered in cafeteria plans and FSA. S 158 - Access to Affordable Health Care Act. Issue: above the line deduction for long term care insurance. S. 555 - Simple Cafeteria Plan Act. Issue: Long term care insurance permitted to be offered in cafeteria plans and FSA. H.R. 2205/ S 1010 Retirement Security for Life Act. Issue: Tax Incentive for Non Qualified Annuities S. 1288 - Women's Retirement Act of 2007. Issue: federal tax treatment of annuities. S. 3952 - Automatic IRA Act of 2007. Issue: expand pension coverage. H.R.3361 -To make technical corrections related to the Pension Protection Act of 2006. Issue: technical corrections to PPA. S.1974- the Pension Protection Technical Corrections Act of 2007. Issue: technical corrections to PPA. H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007. Issue: Retirement plan fee disclosure. S. 2337/H.R. 3363 Long Term Care Affordability and Security Act of 2007. Issue: allows long term care insurance to be offered in employer sponsored cafeteria plans and FSA. S. 1809/ H.R. 3088 Long-Term Care Act of 2007. Issue: distributions from retirement plans should not be included in gross income if used to pay for LTC premiums. H.R. 3765 Defined Contribution Plan Fee Transparency Act of 2007. Issue: retirement plan fee disclosure. S. 1758 Community Living Assistance Services and Supports Act. Issue: reform of LTC financing. H.R. 2582 Qualified Long-Term Care Fairness Act of 2007. Issue: above the line deduction for LTC. S. 2121 Caregiver Assistance and Relief Effort Act of 2007. Issue: above the line deduction for LTC. S. 2473 Defined Contribution Fee Disclosure Act. Issue: retirement plan fee disclosure. S. 1087 Fair Pay Act. Issue: civil penalty impact on retirement plans. H.R. 2831 Lilly Ledbetter Fair Pay Act. Issue: civil penalty impact on retirement plans. H.R. 2419 Farm Bill Extension Act. Issue: Roth treatment for 457 contracts. H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act. Issue: military access to retirement monies. H.R. 5160 Small Business Add Value for Employees Act of 2008. Issue: expand pension coverage. H.R. 5559 The Long Term Care and Retirement Security Act of 2008. Issue: LTC in cafeteria and FSA and above the line deductions for LTC premiums. S. 2794 The Senior Investor Protection Act of 2008. Issue: sales to seniors of annuity products. H.R. 6237 The Tax Relief for Long Term Care Act of 2008. Issue: tax credit for LTC insurance premiums. S. 1693 The Wired for Healthcare Quality Act. Issue: affects of LTC ERISA preemption. H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections. Issue: Retirement plan modifications H.R. 6143 Pension Protection Act ERISA Amendments of 2008. Issue: Retirement plan modifications. H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC and annuity clarification; Tax free exchange provisions for LTC. S. 3278/ HR 6708 - A bill which would limit the use of 401(k) debit cards and limit withdrawals from 401(k) plans. Issue: limit of withdrawals on retirement plans. H.R. 1424 Emergency Economic Stabilization Act of 2008. Issue: executive com restrictions and 401(k) asset recovery. H.R. 3765 Defined Contribution Plan Fee Transparency Act of 2007. Issue: retirement plan fee disclosure. S. 3327 Empowered at Home Act of 2008. Issue: Allows above the line tax deduction for LTC premiums. Allows LTC to be offered in cafeteria/ FSA plans. H. Con Res 431 Supporting the Goals and Ideals of a Long Term Awareness Week. Issue: LTC.

S 1343, HR 2241, S 2479, HR 3373, HR 3544, S 755 - supporting diabetes treatment and prevention; HR 1952, HR 2377, HR 3800, S 1693, HR 6357, S 1408, S 1814 - supporting development of HIT and infrastructure; HR 2580, HR 5480, S 2662 - seeking professional liability reform; HR 5559, HR 5543, HR 6110, S 158, S 2050 - ensuring parity for podiatric physicians in statutory definitions of physician and services; HR 3163, S 334 - supporting national health care reform

Client expense: $60,000 · Firm income: Not reported

Government targets: Centers For Medicare and Medicaid Services (CMS), HOUSE OF REPRESENTATIVES, Indian Health Service, SENATE

H.R.32: To provide for a credit for certain health care benefits in determining the minimum wage. H.R.126: To amend the Internal Revenue Code of 1986 to allow loans from individual retirement plans for qualified small business capital assets. H.R.298: To amend the Internal Revenue Code of 1986 to allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to the next plan year. H.R.527: To help American families save, invest, and build a better future, and for other purposes. H.R.640: To amend the Internal Revenue Code of 1986 to permit financial institutions to determine their interest expense deduction without regard to tax-exempt bonds issued to provide certain small loans for health care or educational purposes. H.R.666: To amend the Internal Revenue Code of 1986 to require that amounts paid for employer-provided coverage under accident or health plans be included on W-2 Forms. H.R.892: To establish and provide for the treatment of Individual Development Accounts, and for other purposes. H.R.1672: To amend the Internal Revenue Code of 1986 to deny qualified dividend income treatment to certain foreign dividends. H.R.1748: To amend the Internal Revenue Code of 1986 to expand workplace health incentives by equalizing the tax consequences of employee athletic facility use. H.R. 2163: to amend the Internal Revenue Code of 1986 to expand incentives for saving. H.R. 2205: to amend the Internal Revenue Code of 1986 to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments. H.R.2834: To amend the Internal Revenue Code of 1986 to treat income received by partners for performing investment management services as ordinary income received for the performance of services. H.R. 3475: to amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5 million, to adjust such amount for inflation, to repeal the one-year termination of the estate tax, and for other purposes. H.R. 3694: to amend the Internal Revenue Code of 1986 to provide corporate alternative minimum tax reform. H.R. 3717: to amend the Internal Revenue Code of 1986 to provide a tax credit to employers for the costs of implementing wellness programs, and for other purposes. H.R. 3923: to amend the Internal Revenue Code of 1986 to provide for the treatment of certain foreign nonqualified deferred compensation. H.R. 3947: to amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements. H.R. 3970: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. H.R. 3975: to amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals. H.R. 3996: to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. H.R. 4172: to amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3.5 million. H.R. 4195: to amend the Internal Revenue Code of 1986 to make technical corrections. H.R. 4235: to amend the Internal Revenue Code of 1986 to restore the estate tax, to repeal the carryover basis rule, to reduce estate tax rates by 20 percent, to increase the unified credit against estate and gift taxes to the equivalent of a $3 million exclusion and to provide an inflation adjustment of such amount, and for other purposes. H.R.5031: To amend the Internal Revenue Code of 1986 to extend relief from the alternative minimum tax. H.R.5105: To amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. H.R.5455: To amend title 11 of the United States Code to make nondischargeable debts for personal injuries that result in permanent disability. H.R.5559: To amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term care needs. S.26: A bill to amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes. S.58: A bill to amend the Internal Revenue code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment. S.96: A bill to amend the Internal Revenue Code of 1986 to ensure a fairer and simpler method of taxing controlled foreign corporations of United States shareholders, to treat certain foreign corporations managed and controlled in the United States as domestic corporations, to codify the economic substance doctrine, and to eliminate the top corporate income tax rate, and for other purposes. S.102: A bill to amend the Internal Revenue Code of 1986 to extend and expand relief from the alternative minimum tax and to repeal the extension of the lower rates for capital gains and dividends for 2009 and 2010. S.141: A bill to amend the Internal Revenue Code of 1986 to permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts, and to provide for a deduction for contributions to education savings accounts. S. 2239: to amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. S. 2374: to amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. S.2547: A bill to amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. S.2741: to amend the Internal Revenue Code of 1986 to provide for disability savings accounts. S.3049: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. S.3125: To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.

TAX (Tax) (Legislative): H.R. 914: Tax Equity and Affordability Act (Ryan); H.R. 2302: Health Insurance Affordability Act (King); H.R. 2582: Qualified Long-term Care Fairness Act (Brown-Waite) (continued) (TAX (Tax) Legislative continued) H.R. 2639: Promoting Health for Future Generations Act (provisions relating to HSAs) (Boustany); H.R. 3088: Long-Term Care Act (Terry); H.R. 3234: HSA Improvement and Expansion Act (Cantor); H.R. 3306: Flexible Health Savings Act (Royce); H.R. 3363: Long-Term Care Affordability and Security Act (Pomeroy); H.R. 3920: Trade and Globalization Assistance Act (provisions relating to health care tax credits, COBRA continuation coverage, health insurance reforms) (Rangel); H.R. 5559: Long-Term Care and Retirement Security Act (Putnam); H.R. 5719: Taxpayer Assistance and Simplification Act (HSA provision); H.R. 6237: Tax Relief for Long-Term Care Act (Courtney); S. 397: Tax Equity and Affordability Act (Martinez); S. 504: Long-Term Care Trust Account Act (Smith); S. 555: SIMPLE Cafeteria Plan Act (Snowe); S. 897: Alzheimer's Family Assistance Act (Mikulski); S. 1809: Long-Term Care Act (Thune); S. 2237: Long-Term Care Affordability and Security Act (Grassley); S. 2835: Health Care Equity Act (DeMint). TAX (Tax) Regulatory: None to report.

Client expense: $1,850,000 · Firm income: Not reported

HR 46 - Small Business Tax Fairness and Simplification Act S 158 - Access to Affordable Health Care Act S 344 - Healthy Americans Act HR 676 - US National Health Insurance Act S. 555 - Simple Cafeteria Plan Act H.R. 914 - Tax Equity and Affordability Act S. 897 - Alzheimers Family Assistance Act H.R. 1807 - Alzheimers Family Assistance Act H.R. (Concurrent Resolution) 133 - Supporting the Goals of the Long Term Care Awareness Week H.R. 2205/ S 1010 - Tax Incentive for Non Qualified Annuities H.R. 2 - Fair Minimum Wage Act H.R. 1591 - US Troop Readiness, Veterans Health, and Iraq Accountability Act H.R. 976 - Small Business Tax Relief Act S. 1288 - Women's Retirement Act of 2007 S. 3952 - Automatic IRA Act of 2007 H.R.3361 -To make technical corrections related to the Pension Protection Act of 2006 S.1974- the Pension Protection Technical Corrections Act of 2007 H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007 H.R. 3363 Long Term Care Affordability and Security Act of 2007 S. 2337 - Long Term Care Affordability and Security Act of 2007 H.R. 3088 Long-Term Care Act of 2007 S. 1809 Long-Term Care Act of 2007 S. 1758 Community Living Assistance Services and Supports Act H.R. 2582 Qualified Long-Term Care Fairness Act of 2007 S. 2121 Caregiver Assistance and Relief Effort Act of 2007 S. 2268 Long-Term Care Insurance Integrity Act of 2007 S. 2473 Defined Contribution Fee Disclosure Act S. 1087 Fair Pay Act H.R. 2831 Lilly Ledbetter Fair Pay Act H.R. 4839 Tax Technical Corrections H.R. 2419 Farm Bill Extension Act H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act H.R. 5160 Small Business Add Value for Employees Act of 2008 H.R. 5559 The Long Term Care and Retirement Security Act of 2008 S. 2794 The Senior Investor Protection Act of 2008 H.R. 6237 The Tax Relief for Long Term Care Act of 2008 H.R. 3221- The Foreclosure Prevention Act of 2008 S. 2636 - The Foreclosure Prevention Act of 2008 S. 1693 The Wired for Healthcare Quality Act H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections H.R. 6143 Pension Protection Act ERISA Amendments of 2008

S 1343, HR 2241, S 2479, HR 3373, HR 3544, S 755 - supporting diabetes treatment and prevention; HR 1952, HR 2377, HR 3800, S 1693, HR 6357, S 1408, S 1814 - supporting development of HIT and infrastructure; HR 2580, HR 5480, S 2662 - seeking professional liability reform; HR 5559, HR 5543, HR 6110, S 158, S 2050 - ensuring parity for podiatric physicians in statutory definitions of physician and services; HR 3163, S 334 - supporting national health care reform

Client expense: $80,000 · Firm income: Not reported

Government targets: Centers For Medicare and Medicaid Services (CMS), HOUSE OF REPRESENTATIVES, Indian Health Service, SENATE

Tax issues - S 897, Alzheimer's Family Assistance Act of 2007; S 504, Long-Term Care Trust Account Act of 2007; HR 2639, Promoting Health for Future Generations Act of 2007; HR 2582, Qualified Long-term Care Fairness Act of 2007; S 555, SIMPLE Cafeteria Plan Act of 2007; HR 914, Tax Equity and Affordability Act of 2007; S 397, Tax Equity and Affordability Act of 2007; HR 2302, Health Insurance Affordability Act of 2007; S 1809, Long-Term Care Act of 2007; HR 3088, Long-Term Care Act of 2007; HR 3234, HSA Improvement and Expansion Act of 2007; HR 3306, Flexible Health Savings Act of 2007; HR 3363, Long-Term Care Affordability and Security Act of 2007; S 2337, Long-Term Care Affordability and Security Act of 2007; HR 3920, Trade and Globalization Assistance Act of 2007; HR 5559, Long-Term Care and Retirement Security Act of 2008; HR 5719, Taxpayer Assistance and Simplification Act of 2008; S 2835, To amend the Internal Revenue Code of 1986 to allow the purchase of health insurance with pre-tax dollars; HR 6237, Tax Relief for Long-Term Care Act of 2008.

Client expense: Not reported · Firm income: $100,000

HR 1328/ S 1200, "Indian Health Care Improvement Act Reauthorization Bill," regarding sections 403 and 407 of the House version and section 415 of the Senate version; HR 4460/ S 2477, "Health Care Choice Act," monitoring activity regarding all provisions; HR 506, "The Health Partmership Through Creative Federalism Act," monitoring activity regarding all provisions; S 1758, "Community Living Assistance Services and Supports Act," regarding all provisions; S 1693, "The Wired for Health Care Quality Act," regarding all provisions; S 504 "Long-Term Care Trust Account Act of 2007", regarding all provisions; HR 2582, "Qualified Long-Term Care Fairness Act of 2007", regarding all provisions; S 1758, "Community Living Assistance Services and Supports Act", regarding all provisions; HR 5559 "Long-Term Care Retirement and Security Act of 2008", regarding all provisions; HR 493, "Genetic Nondiscrimination Act of 2007", regarding all provisions; S 334 "Healthy Americans Act", regarding all provisions; HR 6210/ S2795, "SHOP Act", regarding all provisions; HR 6357, "PRO(TECH)T Act of 2008", regarding all provisions.

Client expense: $880,000 · Firm income: Not reported

HR 3200/ S 40, "National Insurance Act," regarding all provisions; HR 3363/ S 2337, "Long-Term Care Affordability and Security Act of 2008," regarding all provisions; HR 1810/ S 1366, "Consolidated Returns," regarding all provisions; S 504, "Long-Term Care Trust Account Act of 2007", regarding all provisions; HR 2582, "Qualified Long-Term Care Fairness Act of 2007", regarding all provisions; S 1758 "Community Living Assistance Services and Supports Act", regarding all provisions; HR 5559, "Long-Term Care and Security Act of 2008", regarding all provisions; HR 6237, "Tax Relief for Long-Term Care Act of 2008", regarding all provisions; HR 5543/S 1288, "Women's Retirement Security Act of 2008", regarding all provisions; HR 5840, "Insurance Information Act of 2008, regarding all provisions.

Client expense: $880,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, U.S. Trade Representative (USTR)

See attachment. RET Second Quarter Report 2008 H.R. 2 - Fair Minimum Wage Act H.R. 46 - Small Business Tax Fairness and Simplification Act H.R. 914 - Tax Equity and Affordability Act H.R. 976 - Small Business Tax Relief Act H.R. 1807 - Alzheimers Family Assistance Act H.R. 2205/ S. 1010 - Tax Incentive for Non Qualified Annuities H.R. 2419 Farm Bill Extension Act H.R. 2582 Qualified Long-Term Care Fairness Act of 2007 H.R. 3088 Long-Term Care Act of 2007 H.R. 3185 - The 401(k) Fair Disclosure for Retirement Security Act of 2007 H.R. 3361 - To make technical corrections related to the Pension Protection Act of 2006 H.R. 3363 Long Term Care Affordability and Security Act of 2007 H.R. 4839 Tax Technical Corrections H.R. 5160 Small Business Add Value for Employees Act of 2008 H.R. 5559 The Long Term Care and Retirement Security Act of 2008 H.R. 6143 Pension Protection Act ERISA Amendments of 2008 H.R. 6237 The Tax Relief for Long Term Care Act of 2008 H.R. 6357 Protecting Records, Optimizing Treatments, and Easing Communications Through Healthcare Technology Act of 2008 (ProTECHt Act) H.R. 6382 Pension Protection Act Technical Corrections H.R. (Concurrent Resolution) 133 - Supporting the Goals of the Long Term Care Awareness Week S. 555 - Simple Cafeteria Plan Act S. 897 - Alzheimers Family Assistance Act S. 1288 - Women's Retirement Act of 2007 S. 1974 - The Pension Protection Technical Corrections Act of 2007 S. 1809 Long-Term Care Act of 2007 S. 2337 - Long Term Care Affordability and Security Act of 2007 S. 3952 - Automatic IRA Act of 2007 S. 1758 Community Living Assistance Services and Supports Act S. 2121 Caregiver Assistance and Relief Effort Act of 2007 S. 2268 Long-Term Care Insurance Integrity Act of 2007 S. 2473 Defined Contribution Fee Disclosure Act S. 2794 The Senior Investor Protection Act of 2008 S. 1693 The Wired for Healthcare Quality Act Final 403(b) Regulations/Revenue Proceeding 2007-71 - issues related to timing relief, clarification of transition relief, grandfathering, effective date and restrictions on immediate redeemability. Department of Labor - Regulation on annual reporting obligations 29 CFR 2920-103-1; 72 FR 221 Notice of adoption of revisisions to annual return/report forms. Department of Labor - Final Revised Form 5500 (2009) - New Fee Reporting Rules - request changes to final rules.

H.R.32: To provide for a credit for certain health care benefits in determining the minimum wage. H.R.126: To amend the Internal Revenue Code of 1986 to allow loans from individual retirement plans for qualified small business capital assets. H.R.298: To amend the Internal Revenue Code of 1986 to allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to the next plan year. H.R.527: To help American families save, invest, and build a better future, and for other purposes. H.R.640: To amend the Internal Revenue Code of 1986 to permit financial institutions to determine their interest expense deduction without regard to tax-exempt bonds issued to provide certain small loans for health care or educational purposes. H.R.666: To amend the Internal Revenue Code of 1986 to require that amounts paid for employer-provided coverage under accident or health plans be included on W-2 Forms. H.R.892: To establish and provide for the treatment of Individual Development Accounts, and for other purposes. H.R.1672: To amend the Internal Revenue Code of 1986 to deny qualified dividend income treatment to certain foreign dividends. H.R.1748: To amend the Internal Revenue Code of 1986 to expand workplace health incentives by equalizing the tax consequences of employee athletic facility use. H.R. 2163: to amend the Internal Revenue Code of 1986 to expand incentives for saving. H.R. 2205: to amend the Internal Revenue Code of 1986 to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments. H.R.2834: To amend the Internal Revenue Code of 1986 to treat income received by partners for performing investment management services as ordinary income received for the performance of services. H.R. 3475: to amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5 million, to adjust such amount for inflation, to repeal the one-year termination of the estate tax, and for other purposes. H.R. 3694: to amend the Internal Revenue Code of 1986 to provide corporate alternative minimum tax reform. H.R. 3717: to amend the Internal Revenue Code of 1986 to provide a tax credit to employers for the costs of implementing wellness programs, and for other purposes. H.R. 3923: to amend the Internal Revenue Code of 1986 to provide for the treatment of certain foreign nonqualified deferred compensation. H.R. 3947: to amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements. H.R. 3970: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. H.R. 3975: to amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals. H.R. 3996: to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. H.R. 4172: to amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3.5 million. H.R. 4195: to amend the Internal Revenue Code of 1986 to make technical corrections. H.R. 4235: to amend the Internal Revenue Code of 1986 to restore the estate tax, to repeal the carryover basis rule, to reduce estate tax rates by 20 percent, to increase the unified credit against estate and gift taxes to the equivalent of a $3 million exclusion and to provide an inflation adjustment of such amount, and for other purposes. H.R.5031: To amend the Internal Revenue Code of 1986 to extend relief from the alternative minimum tax. H.R.5105: To amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. H.R.5455: To amend title 11 of the United States Code to make nondischargeable debts for personal injuries that result in permanent disability. H.R.5559: To amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term care needs. S.26: A bill to amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes. S.58: A bill to amend the Internal Revenue code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment. S.96: A bill to amend the Internal Revenue Code of 1986 to ensure a fairer and simpler method of taxing controlled foreign corporations of United States shareholders, to treat certain foreign corporations managed and controlled in the United States as domestic corporations, to codify the economic substance doctrine, and to eliminate the top corporate income tax rate, and for other purposes. S.102: A bill to amend the Internal Revenue Code of 1986 to extend and expand relief from the alternative minimum tax and to repeal the extension of the lower rates for capital gains and dividends for 2009 and 2010. S.141: A bill to amend the Internal Revenue Code of 1986 to permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts, and to provide for a deduction for contributions to education savings accounts. S. 2239: to amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. S. 2374: to amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. S.2547: A bill to amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. S.2741: to amend the Internal Revenue Code of 1986 to provide for disability savings accounts. S.3049: To amend the Internal Revenue Code of 1986 to provide additional tax relief to low and moderate income individuals, to repeal the individual alternative minimum tax, to reform the corporate income tax, and for other purposes. S.3125: To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.

S897 Alzheimer's Family Assistance Act of 2007 S504 Long Term Care Trust Accounts Act of 2007 S555 Simple Cafeteria Plan Act of 2007 HR493 Genetic Information Non-Discrimination Act of 2007 HR3363 Long Term Care Affordability and Security Act of 2007 S2337 Long Term Care Affordability and Security Act of 2007 HR5559 Long Term Care Retirement and Security Act of 2008

Client expense: $800,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Labor, Dept of (DOL), SENATE

H.R.32: To provide for a credit for certain health care benefits in determining the minimum wage. H.R.126: To amend the Internal Revenue Code of 1986 to allow loans from individual retirement plans for qualified small business capital assets. H.R.298: To amend the Internal Revenue Code of 1986 to allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to the next plan year. H.R.527: To help American families save, invest, and build a better future, and for other purposes. H.R.640: To amend the Internal Revenue Code of 1986 to permit financial institutions to determine their interest expense deduction without regard to tax-exempt bonds issued to provide certain small loans for health care or educational purposes. H.R.666: To amend the Internal Revenue Code of 1986 to require that amounts paid for employer-provided coverage under accident or health plans be included on W-2 Forms. H.R.892: To establish and provide for the treatment of Individual Development Accounts, and for other purposes. H.R.1672: To amend the Internal Revenue Code of 1986 to deny qualified dividend income treatment to certain foreign dividends. H.R.1748: To amend the Internal Revenue Code of 1986 to expand workplace health incentives by equalizing the tax consequences of employee athletic facility use. H.R. 2163: to amend the Internal Revenue Code of 1986 to expand incentives for saving. H.R. 2205: to amend the Internal Revenue Code of 1986 to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments. H.R.2834: To amend the Internal Revenue Code of 1986 to treat income received by partners for performing investment management services as ordinary income received for the performance of services. H.R. 3475: to amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5 million, to adjust such amount for inflation, to repeal the one-year termination of the estate tax, and for other purposes. H.R. 3694: to amend the Internal Revenue Code of 1986 to provide corporate alternative minimum tax reform. H.R. 3717: to amend the Internal Revenue Code of 1986 to provide a tax credit to employers for the costs of implementing wellness programs, and for other purposes. H.R. 3923: to amend the Internal Revenue Code of 1986 to provide for the treatment of certain foreign nonqualified deferred compensation. H.R. 3947: to amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements. H.R. 3975: to amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals. H.R. 3996: to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. H.R. 4172: to amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3.5 million. H.R. 4195: to amend the Internal Revenue Code of 1986 to make technical corrections. H.R. 4235: to amend the Internal Revenue Code of 1986 to restore the estate tax, to repeal the carryover basis rule, to reduce estate tax rates by 20 percent, to increase the unified credit against estate and gift taxes to the equivalent of a $3 million exclusion and to provide an inflation adjustment of such amount, and for other purposes. H.R.5031: To amend the Internal Revenue Code of 1986 to extend relief from the alternative minimum tax. H.R.5105: To amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. H.R.5455: To amend title 11 of the United States Code to make nondischargeable debts for personal injuries that result in permanent disability. H.R.5559: To amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term care needs. S.26: A bill to amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes. S.58: A bill to amend the Internal Revenue code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment. S.96: A bill to amend the Internal Revenue Code of 1986 to ensure a fairer and simpler method of taxing controlled foreign corporations of United States shareholders, to treat certain foreign corporations managed and controlled in the United States as domestic corporations, to codify the economic substance doctrine, and to eliminate the top corporate income tax rate, and for other purposes. S.102: A bill to amend the Internal Revenue Code of 1986 to extend and expand relief from the alternative minimum tax and to repeal the extension of the lower rates for capital gains and dividends for 2009 and 2010. S.141: A bill to amend the Internal Revenue Code of 1986 to permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts, and to provide for a deduction for contributions to education savings accounts. S. 2239: to amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. S. 2374: to amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. S.2547: A bill to amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. S.2741: to amend the Internal Revenue Code of 1986 to provide for disability savings accounts.

S504: LONG TERM CARE TRUST ACCOUNTS ACT; ALL PROVISIONS OF THE BILL S555: SIMPLE CAFETERIA PLAN ACT; LONG-TERM CARE PROVISIONS H.RES.CON.133: SUPPORTING THE GOALS OF THE LONG TERM CARE AWARENESS WEEK; ALL PROVISIONS OF THE BILL S1010/HR2205: TAX INCENTIVE FOR NON QUALIFIED ANNUITIES; ALL PROVISIONS OF THE BILL S1288: WOMEN'S RETIREMENT ACT OF 2007; ALL PROVISIONS OF THE BILL S1141: AUTOMATIC IRA ACT OF 2007; ALL PROVISIONS OF THE BILL S1974/HR3361: PENSION PROTECTION TECHNICAL CORRECTIONS ACT OF 2007; ALL PROVISIONS OF THE BILL HR3185: 401(K) FAIR DISCLOSURE FOR RETIREMENT SECURITY ACT OF 2007; ALL PROVISIONS OF THE BILL S2337/HR3363: LONG-TERM CARE AFFORDABILITY AND SECURITY ACT OF 2007; ALL PROVISIONS OF THE BILL S1809/HR3088: LONG-TERM CARE ACT OF 2007; ALL PROVISIONS OF THE BILL HR2582: QUALIFIED LONG-TERM CARE FAIRNESS ACT OF 2007; ALL PROVISIONS OF THE BILL S2268: LONG TERM CARE INSURANCE INTEGRITY ACT OF 2007; ALL PROVISIONS OF THE BILL S2473: DEFINED CONTRIBUTION FEE DISCLOSURE ACT; ALL PROVISIONS OF THE BILL HR4839: TAX TECHNICAL CORRECTIONS; ALL PROVISIONS OF THE BILL HR2419: FARM BILL EXTENSION ACT; TAX PROVISIONS HR3997: HEROES EARNINGS ASSISTANCE AND RELIEF TAX ACT; SAVINGS PROVISIONS HR5160: SMALL BUSINESS ADD VALUE FOR EMPLOYEES ACT OF 2008; ALL PROVISIONS OF THE BILL HR5559: LONG TERM CARE AND RETIREMENT SECURITY ACT OF 2008; ALL PROVISIONS OF THE BILL S2794: SENIOR INVESTOR PROTECTION ACT OF 2008; ALL PROVISIONS OF THE BILL

Client expense: $540,000 · Firm income: Not reported

HR 46 - Small Business Tax Fairness and Simplification Act S 158 - Access to Affordable Health Care Act S. 344 - Healthy Americans Act HR 676 - US National Health Insurance Act S. 504 - Long Term Care Trust Accounts Act S. 555 - Simple Cafeteria Plan Act H.R. 914 - Tax Equity and Affordability Act S. 897 - Alzheimers Family Assistance Act H.R. 1807 - Alzheimers Family Assistance Act H.R. (Concurrent Resolution) 133 - Supporting the Goals of the Long Term Care Awareness Week H.R. 2205/ S 1010 - Tax Incentive for Non Qualified Annuities H.R. 2 - Fair Minimum Wage Act H.R. 1591 - US Troop Readiness, Veterans Health, and Iraq Accountability Act H.R. 976 - Small Business Tax Relief Act S. 1288 - Women's Retirement Act of 2007 S. 3952 - Automatic IRA Act of 2007 H.R.3361 -To make technical corrections related to the Pension Protection Act of 2006 S.1974- the Pension Protection Technical Corrections Act of 2007 H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007 H.R. 3363 Long Term Care Affordability and Security Act of 2007 S. 2337 - Long Term Care Affordability and Security Act of 2007 H.R. 3088 Long-Term Care Act of 2007 S. 1809 Long-Term Care Act of 2007 S. 1758 Community Living Assistance Services and Supports Act H.R. 2582 Qualified Long-Term Care Fairness Act of 2007 S. 2121 Caregiver Assistance and Relief Effort Act of 2007 S. 2268 Long-Term Care Insurance Integrity Act of 2007 S. 2473 Defined Contribution Fee Disclosure Act S. 1087 Fair Pay Act H.R. 2831 Lilly Ledbetter Fair Pay Act H.R. 4839 Tax Technical Corrections H.R. 2419 Farm Bill Extension Act H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act H.R. 5160 Small Business Add Value for Employees Act of 2008 H.R. 5559 The Long Term Care and Retirement Security Act of 2008 S. 2794 The Senior Investor Protection Act of 2008

See attachment. RET First Quarter Report 2008 H.R. 46 - Small Business Tax Fairness and Simplification Act H.R. 914 - Tax Equity and Affordability Act H.R. 976 - Small Business Tax Relief Act H.R. 1807 - Alzheimers Family Assistance Act H.R. 2205/ S 1010 - Tax Incentive for Non Qualified Annuities H.R. 2419 Farm Bill Extension Act H.R. 2582 Qualified Long-Term Care Fairness Act of 2007 H.R. 2831 Lilly Ledbetter Fair Pay Act H.R. 3088 Long-Term Care Act of 2007 H.R. 3185 - The 401(k) Fair Disclosure for Retirement Security Act of 2007 H.R. 3361 - To make technical corrections related to the Pension Protection Act of 2006 H.R. 3363 Long Term Care Affordability and Security Act of 2007 H.R. 3765 The Defined Contribution Plan Fee Transparency Act of 2007 H.R. 3997 Defenders of Freedom Tax Act/ Heroes Earnings Assistance and Relief Act H.R. 4839 Tax Technical Corrections H.R. 5160 Small Business Add Value for Employees Act of 2008 H.R. 5559 The Long Term Care and Retirement Security Act of 2008 H.R. (Concurrent Resolution) 133 - Supporting the Goals of the Long Term Care Awareness Week S. 504 - Long Term Care Trust Accounts Act S. 555 - Simple Cafeteria Plan Act S. 897 - Alzheimers Family Assistance Act S. 1087 Fair Pay Act RET First Quarter Report 2008 continued S. 1288 - Women's Retirement Act of 2007 S. 1758 Community Living Assistance Services and Supports Act S. 1809 Long-Term Care Act of 2007 S. 1974 - The Pension Protection Technical Corrections Act of 2007 S. 2121 Caregiver Assistance and Relief Effort Act of 2007 S. 2268 Long-Term Care Insurance Integrity Act of 2007 S. 2337 - Long Term Care Affordability and Security Act of 2007 S. 2473 Defined Contribution Fee Disclosure Act S. 2794 The Senior Investor Protection Act of 2008 S. 3952 - Automatic IRA Act of 2007 Department of Labor Guidance Level Fee Exemption (Section 408(b)(14) and 408(g)(2) of ERISA) and IRA Exemption (Section 601(b)(3) of Pension Protection Act of 2006). Final 403(b) Regulations/Revenue Proceeding 2007-71 issues related to timing relief, clarification of transition relief, grandfathering and effective date. Department of Labor proposed amendments to Reg. Section 2550.408b-2 interpreting service provider prohibited transaction exemption under ERISA section 408(b)(2). Draft of Rep. Andrews Easy 401(k) Bill. Department of Labor Final Revised Form 5500 (2009) New Fee Reporting Rules request changes to final rules.

TAX (Tax) (Legislative): H.R. 914: Tax Equity and Affordability Act (Ryan); H.R. 2302: Health Insurance Affordability Act (King); H.R. 2582: Qualified Long-term Care Fairness Act (Brown-Waite) (continued) (TAX (Tax) Legislative continued) H.R. 2639: Promoting Health for Future Generations Act (Boustany); H.R. 3088: Long-Term Care Act (Terry); H.R. 3234: HSA Improvement and Expansion Act (Cantor); H.R. 3306: Flexible Health Savings Act (Royce); H.R. 3363: Long-Term Care Affordability and Security Act (Pomeroy); H.R. 3920: Trade and Globalization Assistance Act (Rangel); H.R. 5559: Long-Term Care and Retirement Security Act (Putnam); S. 397: Tax Equity and Affordability Act (Martinez); S. 504: Long-Term Care Trust Account Act (Smith); S. 555: SIMPLE Cafeteria Plan Act (Snowe); S. 897: Alzheimer's Family Assistance Act (Mikulski); S. 1809: Long-Term Care Act (Thune); S. 2237: Long-Term Care Affordability and Security Act (Grassley) TAX (Tax) Regulatory: None to report.

Client expense: $1,820,000 · Firm income: Not reported

H.R.32: To provide for a credit for certain health care benefits in determining the minimum wage. H.R.126: To amend the Internal Revenue Code of 1986 to allow loans from individual retirement plans for qualified small business capital assets. H.R.298: To amend the Internal Revenue Code of 1986 to allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to the next plan year. H.R.527: To help American families save, invest, and build a better future, and for other purposes. H.R.640: To amend the Internal Revenue Code of 1986 to permit financial institutions to determine their interest expense deduction without regard to tax-exempt bonds issued to provide certain small loans for health care or educational purposes. H.R.666: To amend the Internal Revenue Code of 1986 to require that amounts paid for employer-provided coverage under accident or health plans be included on W-2 Forms. H.R.892: To establish and provide for the treatment of Individual Development Accounts, and for other purposes. H.R.1672: To amend the Internal Revenue Code of 1986 to deny qualified dividend income treatment to certain foreign dividends. H.R.1748: To amend the Internal Revenue Code of 1986 to expand workplace health incentives by equalizing the tax consequences of employee athletic facility use. H.R. 2163: to amend the Internal Revenue Code of 1986 to expand incentives for saving. H.R. 2205: to amend the Internal Revenue Code of 1986 to encourage guaranteed lifetime income payments from annuities and similar payments of life insurance proceeds at dates later than death by excluding from income a portion of such payments. H.R.2834: To amend the Internal Revenue Code of 1986 to treat income received by partners for performing investment management services as ordinary income received for the performance of services. H.R. 3475: to amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5 million, to adjust such amount for inflation, to repeal the one-year termination of the estate tax, and for other purposes. H.R. 3694: to amend the Internal Revenue Code of 1986 to provide corporate alternative minimum tax reform. H.R. 3717: to amend the Internal Revenue Code of 1986 to provide a tax credit to employers for the costs of implementing wellness programs, and for other purposes. H.R. 3923: to amend the Internal Revenue Code of 1986 to provide for the treatment of certain foreign nonqualified deferred compensation. H.R. 3947: to amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements. H.R. 3975: to amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals. H.R. 3996: to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes. H.R. 4172: to amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3.5 million. H.R. 4195: to amend the Internal Revenue Code of 1986 to make technical corrections. H.R. 4235: to amend the Internal Revenue Code of 1986 to restore the estate tax, to repeal the carryover basis rule, to reduce estate tax rates by 20 percent, to increase the unified credit against estate and gift taxes to the equivalent of a $3 million exclusion and to provide an inflation adjustment of such amount, and for other purposes. H.R.5031: To amend the Internal Revenue Code of 1986 to extend relief from the alternative minimum tax. H.R.5105: To amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. H.R.5455: To amend title 11 of the United States Code to make nondischargeable debts for personal injuries that result in permanent disability. H.R.5559: To amend the Internal Revenue Code of 1986 to allow individuals a deduction for qualified long-term care insurance premiums, use of such insurance under cafeteria plans and flexible spending arrangements, and a credit for individuals with long-term care needs. S.26: A bill to amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes. S.58: A bill to amend the Internal Revenue code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment. S.96: A bill to amend the Internal Revenue Code of 1986 to ensure a fairer and simpler method of taxing controlled foreign corporations of United States shareholders, to treat certain foreign corporations managed and controlled in the United States as domestic corporations, to codify the economic substance doctrine, and to eliminate the top corporate income tax rate, and for other purposes. S.102: A bill to amend the Internal Revenue Code of 1986 to extend and expand relief from the alternative minimum tax and to repeal the extension of the lower rates for capital gains and dividends for 2009 and 2010. S.141: A bill to amend the Internal Revenue Code of 1986 to permanently increase the maximum annual contribution allowed to be made to Coverdell education savings accounts, and to provide for a deduction for contributions to education savings accounts. S. 2239: to amend the Internal Revenue Code of 1986 to allow self-employed individuals to deduct health insurance costs in computing self-employment taxes. S. 2374: to amend the Internal Revenue Code of 1986 to make technical corrections, and for other purposes. S.2547: A bill to amend the Internal Revenue Code of 1986 to reduce taxes by providing an alternative determination of income tax liability for individuals, repealing the estate and gift taxes, reducing corporate income tax rates, reducing the maximum tax for individuals on capital gains and dividends to 10 percent, indexing the basis of assets for purposes of determining capital gain or loss, creating tax-free accounts for retirement savings, lifetime savings, and life skills, repealing the adjusted gross income threshold in the medical care deduction for individuals under age 65 who have no employer health coverage, and for other purposes. S.2741: to amend the Internal Revenue Code of 1986 to provide for disability savings accounts.

Tax issues - S 897, Alzheimer's Family Assistance Act of 2007; S 504, Long-Term Care Trust Account Act of 2007; HR 2639, Promoting Health for Future Generations Act of 2007; HR 2582, Qualified Long-term Care Fairness Act of 2007; S 555, SIMPLE Cafeteria Plan Act of 2007; HR 914, Tax Equity and Affordability Act of 2007; S 397, Tax Equity and Affordability Act of 2007; HR 2302, Health Insurance Affordability Act of 2007; S 1809, Long-Term Care Act of 2007; HR 3088, Long-Term Care Act of 2007; HR 3234, HSA Improvement and Expansion Act of 2007; HR 3306, Flexible Health Savings Act of 2007; HR 3363, Long-Term Care Affordability and Security Act of 2007; S 2337, Long-Term Care Affordability and Security Act of 2007; HR 3920, Trade and Globalization Assistance Act of 2007; HR 5559, Long-Term Care and Retirement Security.

Client expense: Not reported · Firm income: $100,000