Fair Tax Act of 2007

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 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 $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Client expense: $610,000 · Firm income: Not reported

Government targets: Federal Emergency Management Agency (FEMA), Federal Trade Commission (FTC), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of, U.S. Copyright Office

HR 25 / S 1025--tax reform legislation; HR 2205 / S 1010--retirement security for life legislation; HR 1509 / S 940--subpart F legislation; HR 1810 / S 1366--life/non-life consolidated return legislation; HR 3200 / S 40--optional federal charter legislation; HR 3185 / HR 3765 / S 2473--401(k) fee disclosure legislation; HR 1098 / S 1145--patent reform legislation; HR 6049--tax extension legislation; HR 3221--foreclosure prevention legislation.; HR 1424--market rescue and tax extender legislation.

Client expense: $490,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

HR 4351, AMT Relief Act of 2007, Section 101-102, AMT repeal, Food Donation Tax Incentive S. 3125 and HR 6049, Energy Independence and Tax Relief Act of 2008 -- re-filing of Tax Relief Act after initial incorrect filing. HR 2380, Death Tax Repeal Permanency Act of 2007 -- estate tax repeal HR 3170, Capital Gains and Estate Tax Relief Act of 2007 -- estate tax repeal HR 411, Amend the Internal Revenue Code of 1986, Section 1 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. HR 25, Fair Tax Act, Sec. 101-104 S. 1025, Fair Tax Act, Sec. 101-104, Title II HR 3997, Emergency Economic Stabilization Act - Troubled Asset Provision HR 1424, Emergency Economic Stabilization Act, Title I - Troubled Asset Provision; Title III, Sec. 101 - Renewable Energy Credit; Title III, Sec. 303 - Energy Efficient Commercial Buildings Deduction; Title III, Sec. 404 - 0.2% FUTA surtax; Title IV, Sec. 319 - WOTC for Hurricane Katrina Employees; Title IV, Sec. 323 - Food Donation of qualified inventories. S. 3335, Emergency Economic Stabilization Act, Sec. 101 - Renewable Energy Credit; Sec. 143 - Energy Efficient Commercial Building; Sec. 236 - Food Donation; Sec. 240 - WOTC for Hurricane Katrina Employees

Client expense: $1,600,130 · Firm income: Not reported

HR 4351, AMT Relief Act of 2007, Section 101-102, AMT repeal, Food Donation Tax Incentive S. 3125 and HR 6049, Energy Independence and Tax Relief Act of 2008 -- re-filing of Tax Relief Act after initial incorrect filing. HR 2380, Death Tax Repeal Permanency Act of 2007 -- estate tax repeal HR 3170, Capital Gains and Estate Tax Relief Act of 2007 -- estate tax repeal HR 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses, Sec. 1 -- estate tax repeal HR 25, Fair Tax Act, Sec. 101-104 -- estate tax repeal S. 1025, Fair Tax Act, Sec. 101-104, Title II -- estate tax repeal

Client expense: $1,708,000 · Firm income: Not reported

H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.3970 - Tax Reduction and Reform Act of 2007 H.R.4159 - Simplified USA Tax Act of 2007 H.R.25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other H.R.377 -Insuring Families for Their Future Act of 2007 H.R.3361 - Pension Protection Technical Corrections Act of 2007 S.1974 - Pension Protection Technical Corrections Act of 2007 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 $3,500,000. H. R. 4235 - Estate Tax Reduction Act of 2007 H. R. 4242 - Certain and Immediate Estate Tax Relief Act of 2007 H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 1994 - To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H. R. 3170 - To make permanent the individual income tax rates for capital gains, 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 $5,000,000, to adjust such amount for inflation, to repeal the 1-ear termination of the estate tax, and for other purposes. S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013.

See attachment. TAX Second Quarter Report 2008 H.R. 25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R. 377 - Insuring Families for Their Future Act of 2007 H.R. 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. H.R. 3970 - Tax Reduction and Reform Act of 2007 H.R. 4159 - Simplified USA Tax Act of 2007 H.R. 3361 - Pension Protection Technical Corrections Act of 2007 H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.1974 - Pension Protection Technical Corrections Act of 2007 S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. Treasury Notice 2008-18 - Principle Based Reserves Treasury Notice 2007-15 - Simplification of correction programs for violation of sections 7702, 7702A and 817(h). Treasury Notice 2008-24 - Taxation of partial exchanges. Dept of Treasury - Internal Revenue Rule 2007-61 - suspending Revenue Rule 2007-54 and regulation project - calculating policyholders share of separate account for dividend received deduction.

HR 25 / S 1025--tax reform legislation; HR 2205 / S 1010--retirement security for life legislation; HR 1509 / S 940--subpart F legislation; HR 1810 / S 1366--life/non-life consolidated return legislation; HR 3200 / S 40--optional federal charter legislation; HR 3185 / HR 3765 / S 2473--401(k) fee disclosure legislation; HR 1098 / S 1145--patent reform legislation; HR 6049--tax extension legislation; HR 3221--foreclosure prevention legislation.

Client expense: $400,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 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 $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 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 $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Tobacco regulation, H.R. 1108, H.R.5513, S. 625, S. 1834; PACT Act, H.R. 4081, S. 1025; Budget Resolution SCHIP Reserve Fund - HCONGRES 312.

Client expense: Not reported · Firm income: $30,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

HR 4351, S. 55 and HR 3996, AMT Relief Act of 2007, AMT repeal, Food Donation Tax Incentive HR 2380, 411, 3170 and 25; S.1025 and 14, Death Tax Repeal Permanency Act of 2007, estate tax repeal HR 2206, Small Business Tax Provisions & Work Opportunity Tax Act of 2007, Title VIII, minimum wage bill HR 5140, Economic Stimulus Act of 2007, Title I, economic stimulus

Client expense: $1,360,000 · Firm income: Not reported

H.R.25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. H.R.377 -Insuring Families for Their Future Act of 2007 H.R.3361 - Pension Protection Technical Corrections Act of 2007 S.1974 - Pension Protection Technical Corrections Act of 2007 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 $3,500,000. H. R. 4235 - Estate Tax Reduction Act of 2007 H. R. 4242 - Certain and Immediate Estate Tax Relief Act of 2007 H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 1994 - To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H. R. 3170 - To make permanent the individual income tax rates for capital gains, 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 $5,000,000, to adjust such amount for inflation, to repeal the 1-ear termination of the estate tax, and for other purposes. H.R.4839 - Tax Technical Corrections Act of 2007 H.R.4195 - Tax Technical Corrections Act of 2007 S.2374 - Tax Technical Corrections Act of 2007 H.R.3970 - Tax Reduction and Reform Act of 2007 H.R.4159 - Simplified USA Tax Act of 2007 S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013.

See attachment. TAX First Quarter Report 2008 H.R. 25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R. 377 -Insuring Families for Their Future Act of 2007 H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. H.R.3361 - Pension Protection Technical Corrections Act of 2007 H.R.3970 - Tax Reduction and Reform Act of 2007 H.R.4159 - Simplified USA Tax Act of 2007 H.R.4195 - Tax Technical Corrections Act of 2007 H.R.4839 - Tax Technical Corrections Act of 2007 H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.1974 - Pension Protection Technical Corrections Act of 2007 S.2374 - Tax Technical Corrections Act of 2007 S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. TAX First Quarter Report 2008 continued Treasury Notice 2008-18 Principle Based Reserves. Treasury Notice 2007-15 Simplification of correction programs for violation of sections 7702, 7702A and 817(h). Treasury Notice 2008-24 Taxation of partial exchanges. IRS proposed regulations 1.6011-4 Treat patented tax strategies as reportable transactions; section 2369 prohibit the patenting of tax strategies. Dept of Treasury Internal Revenue Rule 2007-61 suspending Revenue Rule 2007-54 and regulation project calculating policyholders share of separate account for dividend received deduction.

HR 25 / S 1025--tax reform legislation; HR 2205 / S 1010--retirement security for life legislation; HR 1509 / S 940--subpart F legislation; HR 1810 / S 1366--life/non-life consolidated return legislation; HR 3200 / S 40--optional federal charter legislation; HR 3185 / HR 3765 / S 2473--401(k) fee disclosure legislation; HR 1098 / S 1145--patent reform legislation

Client expense: $410,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 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 $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

H.R. 4351 - AMT repeal. Food donation tax incentive H.R. 2380, 411, 1929, 3056, 3170 and 25; S. 1025 - estate tax repeal

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

HR 1585/S. 1547 Defense Authorization; HR 2417/S. 1025 Intelligence Authorization; HR 3222 Defense Appropriations; THAAD; Extended Range Guided Munitions (ERGM); Sea-based Missile Defense/Land-based Missile Defense; FY '08 Emergency Supplement; Cooperative Engagement Capability (CEC); Enhanced Position Location Reporting System (EPLRS); DDG-1000; TOW; Joint Standoff Weapon System (JSOW); Javelin; SMART-T;

Client expense: $3,749,355 · Firm income: Not reported

HR 25 / S 1025--tax reform legislation; HR 2205 / S 1010--retirement security for life legislation; HR 1509 / S 940--subpart F legislation; HR 1810 / S 1366 life/non-life consolidated return legislation; HR 2761--terrorism risk insurance extension legislation; HR 3200 / S 40--optional federal charter legislation; HR 3185 / HR 3765 / S 2473--401(k) fee disclosure legislation; HR 1908 / S 1145--patent reform legislation.

Client expense: $890,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

HR 5185/S. 1547 Defense Authorization; HR 2417/S. 1025 Intelligence Authorization; HR 3222 Defense Appropriations; THAAD; Extended Range Guided Munitions (ERGM); Sea-based Missile Defense/Land-based Missile Defense; FY-07 Energy Supplemental HR 1591/S. 965; Cooperative Engagement Capability (CEC); Enhanced Position Location Reporting System (EPLRS); DDG-1000; TOW; Joint Standoff Weapon System (JSOW); Javelin; SMART-T; Aviation Advanced Technology (Stinger Universal Launcher); Radar Development (Sentinel); Firefinder; Advanced Field Artillery Tactical Data System (AFATDS); Phalanx CIWS; JPATS; EP-3 Series MOD; EP-3 Series MODS; P-3 Series MODS; Tomahawk; Standard Missile(ERAM); Rolling Airframe Missile (RAM); General Purpose Bombs (GBU-24); Submarine Communication Equipment (High Data Rate); Pedestal Mounted Stinger; Advanced MILSATCOM; Command, Control, and Communications Systems; Special Operations Tactical Systems Development; Special Operations Intelligence Systems; Manned Reconnaissance Systems; Global Hawk; Shared Reconnaissance POD (SHARP); F/A-18-E/F Procurement; Dual Use Applications; Global Broadcast Service (GBS); Major Test and Evaluation Investment; ALQ-184/ALE-50; National Airspace System; Acquisition Reform (Berry Amendment); A-76 Public-Private Competition; Base Realignment and Closures; Blacklisting Federal Acquisition Regulations; Army Airborne Command & Control System (A2C2S); Defense Industrial Base (Buy America) Provisions; Distributed Common Ground System (DCGS); Dominate Mount Viewer (DMV); Evolved Sea Sparrow Missile; EW Development; F-15 Active Electronically Scanned Array Radar (AESA), MK-46 Torpedo MODS; National Polar-Orbiting Operational Envir. Satellite System (NPOESS); Power Projection Adv. Tech (CMRTR); Tank Extended Range Munitions (TERMTM3); WSQ-11; Space Based Radar (SBR); TCA; SBSS; STSS; Classified Space and Intelligence Programs; Excalibur; Tactical Aircraft-Directed Infrared Countermeasures; Space Based Infrared System (SBIRS); Trans Satellite Program (TSP); Global Positioning System (GPS); Close Combat Lethal Recon. (CCLR); Active Denial System (ADS); Active Protection System (APS); Advanced Medium Range Air to Air Missile (AMRAAM); Sidewinder Missile; Paveway; M153 Time Delayed Firing Device/Sympathetic Detonator (TD/SY DET); ALR-69A RWR; APG-73 Expand 4/5 Upgrade; PCDS; Joint Cargo Aircraft; Project Athena; MX-48 Torpedo MODS; BYG-1 Combat System; MK-2 Ship Self-Defense System (SSDS); AQS-20A Mine Hunting Sonar; HARM (High Speed Anti-Radiation Missile); Miniature Air Launched Decoy (MALD); Active Denial; Standard Missile-2 (SM-2); Extended Range Guided Munition (ERGM); Air and Missile Defense Instrumentation System (Live Training); CH53E Upgraded Pilot Display Unit; Intelligence, Surveillance, and Reconnaissance Alternative Solutions; Shared Reconnaissance POD Multi-Special Imaging; Acquisition Policy issues in DoD Authorization and Appropriations Bills, FY-07 Supplemental and HR 1362; Army Training Programs (Warfighter focus); Lead System Integrator; Specialty Metals; Section 1206 in DoD Authorization Bill; Dominant Military Operations on Urbanized Terrain Viewer; Army Extended Range Attack Missile (AERAM); Archer Real-Time Attack System; Mid-Range Munition; Non-Line of Sight Launch System (NLOS-LS); Covert Semi-Active Laser Guidance; Javelin, XM982 Excalibur; Tube Launched Optically Tracked Wire Guided Missile (TOW); Close Combat Lethal Recon (CCLR); Directed Energy Airbase Defense System; Active Electronically Scanned Array (AESA) Seeker; Quiet Eyes; Small Diameter Bomb II; Stinger.

HR3170 regarding capital gains and estate tax relief; HR411 to repeal the estate tax; HR2380 to repeal the estate tax; HR1929 Save the Family Farm and Ranch Act of 2007; S1025 Fair Tax Act of 2007; HR46 Small Business Tax Fairness and Simplification Act of 2007; S1111 Fair Flat Tax Act of 2007; HR 1591 bill making emergency supplemental appropriations for the fiscal year ending September 30, 2007; S396 bill making emergency supplemental appropriations for the fiscal year ending September 30, 2007

Client expense: $849,841 · Firm income: Not reported

TAX – Mid Year Report 2007 H.R.25 - To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. H.R.150 - To prevent the nondisclosure of employer-owned life insurance coverage of employees as an unfair trade practice under the Federal Trade Commission Act, and for other purposes. H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 - A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. S.1111 -A bill to amend the Internal Revenue Code of 1986 to make the Federal income tax system simpler, fairer, and more fiscally responsible, and for other purposes. S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. Not Yet Introduced: Tax Technicals and Miscellaneous Bill 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 Department of Treasury Internal Revenue Code Section 101(j) COLI Best Practices Act - technical corrections and regulations Department of Treasury Internal Revenue Code Section 72(a) and Notice 2003-51 - amendment to 72(a) and other guidance Department of Treasury Section 807 - taxation of principles based reserves See attachment.

AMT Repeal. H.R. 1365, 1366, 2253. S. 734. Estate Tax Repeal. H.R. 2380, 411, 1929, 3056, 25. S. 1025. H.R. 3170. H.R. 2. S.2. Small Business Tax Relief Act of 2007. H.R. 976. WOTC and small business expensing provisions. H.R. 1591. The U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007. Small business tax incentives.

Client expense: $780,000 · Firm income: Not reported

H.R.150 - To prevent the nondisclosure of employer-owned life insurance coverage of employees as an unfair trade practice under the Federal Trade Commission Act, and for other purposes. H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 - A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. S.1111 -A bill to amend the Internal Revenue Code of 1986 to make the Federal income tax system simpler, fairer, and more fiscally responsible, and for other purposes. S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. Not Yet Introduced: Tax Technicals and Miscellaneous Bill H.R.377 - To amend the Internal Revenue Code of 1986 to increase the dollar limitation on employer-provided group term life insurance that can be excluded from the gross income of the employee. 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.25 To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.

HR 25 / S 1025--tax reform legislation; HR 878 / S 601--capital gains reporting legislation; HR 2205 / S 1010--retirement security for life legislation; HR 1509 / S 940--subpart F exemption legislation; HR 1810 / S 1366 life/non-life consolidated return legislation; HR 2761--terrorism risk insurance extension legislation; HR 3200 / S 40--optional federal charter legislation.

Client expense: $700,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE