Providing for consideration of the bill (H.R. 3996) to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.

Monitored and reacted to proposals tied to the federal excise tax on communications which is unfairly applied to different communications services, the federal estate tax, which inhibits the transfer of rural telcos and other rural assets to heirs, and other taxation initiatives that may help or hinder the operations of rural community-based communications providers. Also focused attention on the full implementation of the Sarbanes-Oxley statute that has the potential to create many financial burdens on small business entities such as rural communications providers. During the reporting period, the association focused particular attention on the following: Miscellaneous Tax: H.R. 3861 To amend the Internal Revenue Code of 1986 to increase the AMT refundable credit amount for individuals with long-term unused credits for prior year minimum tax liability all sections. H.R. 3996 To amend the Internal Revenue Code of 1986 to extend certain expiring provisions all sections. Also the resolution for consideration, H. Res. 809. H.R.6049 To amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, and to provide individual income tax relief sections relating to tax expirations affecting small businesses and NTCA benefit plans. S. 2342 To amend the Internal Revenue Code of 1986 to provide alternative minimum tax relief for 2007 and to provide special tax rates for certain capital gains and qualified dividend income for 2007 all sections. S. 2389 To amend the Internal Revenue Code of 1986 to increase the alternative minimum tax credit amount for individuals with long-term unused credits for prior year minimum tax liability all sections. Federal Excise Tax: H.R. 1194 To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services all sections. H.R.3997 To amend the Internal Revenue Code of 1986 to provide tax relief and protections for military personnel all sections. H.R.5793 To restrict any State or local jurisdiction from imposing a new discriminatory tax on cell phone services, providers, or property all sections. H.R.6081 To amend the Internal Revenue Code of 1986 to provide benefits for military personnel all sections. S. 140 To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services all sections. S.166 To restrict any State from imposing a new discriminatory tax on cell phone services all sections. S. 170 To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services all sections. S.3249 A bill to restrict any State or local jurisdiction from imposing a new discriminatory tax on mobile wireless communications services, providers, or property all sections.

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

Government targets: Agriculture, Dept of (USDA), Executive Office of the President (EOP), Federal Communications Commission (FCC), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Internal Revenue Service (IRS), Labor, Dept of (DOL), Natl Telecommunications & Information Administration (NTIA), SENATE

Monitored and reacted to proposals tied to the federal excise tax on communications which is unfairly applied to different communications services, the federal estate tax, which prohibits the transfer of rural telcos and other rural assets to heirs, and other taxation initiatives that may help or hinder the operations of rural community-based communications providers. Also focused attention on the full implementation of the Sarbanes-Oxley statute that has the potential to create many financial burdens on small business entities such as rural communications providers. During the reporting period the association focused particular attention on the following: Miscellaneous Tax: H.R. 3861-To amend the Internal Revenue Code of 1986 to increase the AMT refundable credit amount for individuals with long-term unused credits for prior year minimun tax liability-all sections. H.R. 3996-To amend the Internal Revenue Code of 1986 to extend certain expiring provisions-all sections. Also the resolution for consideration, H. Res. 809. H.R. 5558-To limit the discriminatory taxation of oil pipeline property-all sections. H.R. 6049-To amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, and to provide individual income tax relief-sections relating to tax expirations affecting small businesses and NTCA. benefit plans. S. 2342-To amend the Internal Revenue Code of 1986 to provide alternative minimum tax relief for 2007 and to provide special tax rates for certain capital gains and qualified dividend income for 2007-all sections. S. 2389-To amend the Internal Revenue Code of 1986 to increase the alternative minimum tax credit amount for individuals with long-term unused credits for prior year minimum tax liability-all sections. Federal Excise Tax: H.R. 1194-To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services-all sections. H.R. 3997-To amend the Internal Revenue Code of 1986 to provide tax relief and protections for military personnal-all sections. H.R. 5793-To restrict any state or local jurisdiction from imposing a new discriminatory tax on cell phone services, providers, or property-all sections. H.R. 6081-To amend the Internal Revenue Code of 1986 to provide benefits for military personnel-all sections. S. 140-To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services-all sections. S. 166-To restrict any state from imposing a new discriminatory tax on cell phone services-all sections. S. 170-To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services-all sections.

Client expense: $15,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Federal Communications Commission (FCC), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Internal Revenue Service (IRS), Labor, Dept of (DOL), Natl Telecommunications & Information Administration (NTIA), SENATE