Memo regarding Form 1099 filing requirements

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					                                                                                                                                     P.O. Box 183
                                                                                                                          1155 E. Commerce Blvd.
                                                                                                                                Slinger, WI 53086
                                                                                                                              Fax (262) 644-7777
                                                                                                                              www.glynngroup.net

December 1, 2007



Dear Business Client:

                                                     Memo regarding Form 1099 filing requirements:

Action requested by: January 10, 2008.


What is a Form 1099? The IRS wants to make sure that various individuals and entities are reporting all of their income. Thus it
imposes upon a trade or business, the responsibility to complete a 1099 form, which is submitted to the IRS and certain states, and also
provides the recipient of the payment with a copy of it. The IRS then matches up this information and verifies that the recipient has
reported the income on their tax returns.

What types of 1099 forms are there?

There are over 100 types of 1099 forms. This letter focuses on the main forms, that affect the bulk of our clients.

1099-MISC :         For rents, royalties, other income, non-employee compensation (subcontractors) primarily.
1099-DIV:           For dividends paid from a corporation to a shareholder and S-corp distributions or liquidating distributions
1099-INT:           For interest payments from a business to the lender.
1099-S:             For real estate sales

Who do I need to send these forms to?

You paid the recipient at least $600 during the year.

Payments to a corporation: If the entity you paid is a corporation and you paid it medical & health care payments, fish purchases for
cash or attorney’s fees, you must send the corporation a form. Otherwise corporations are exempt from the filing requirements.

Payments to Individuals, Sole Proprietors, LLC’s, Partnerships, Estates, Trusts are all eligible recipients.

Due Date of Forms: January 31, 2008 to Recipient and February 28, 2008 to IRS

Penalty for not filing/and or incorrect 1099: $15 to $50 per form, up to a maximum of $100,000 for small businesses.

What information is required of the person I paid? If they are a sole proprietor or single-member LLC, you need their proper name,
business name, address, and Social Security # and the amount paid to them.

If the person you paid is a partnership, estate, trust, LLC filing as a Corporation, LLC filing as a S-corporation, Partnership, etc… or
(corporation if payment is for legal fees or medical reasons), then you need their Federal ID#.

When in doubt of their legal entity or if the recipient does not wish to disclose their tax status, then file the form.




 Coldwell Banker Glynn Realty, Inc.            Glynn Financial Services LLC                     Glynn Accounting & Tax Service
     _________________________________________________________________________________________________________________

         (262) 644-6915                                            (262) 644-8479                                         (262) 644-2053




F:\ac\master\1099\2007 1099 mailer\1099 letter 2007.doc
How do I get the information? Use Form W-9 at the time you pay the recipient. (Copy of the form is attached). If they do not provide
you with the information, you MUST withhold 28% of the amount due them, which is payable to the IRS at that time. This is referred to
as backup withholding.

How do I gather the information? If you plan to review your own accounting records:

1. You will need to identify the potential recipients
2. Determine if you paid them over $600 in 2007
3. Identify the type of tax entity they are (by obtaining a W-9)
4. Produce the forms, send them to the appropriate agency, provide the recipient with the correct copy and retain copies for your
business records.

Many of you utilize accounting, computer software with 1099 producing capabilities. If you need assistance in producing the documents
within your software, let us know.


What do I need to do?               Please return the following items to your accountant, by January 10th if possible:


____ “Level of Service” sheet (A)                         Required   Identify the amount of assistance you need from Glynn Acctg.

____ “1099 Questionnaire”                    (B)          Required   Answer the “yes” and “no” questions.

____ “1099 worksheet                         (C)          Optional   Use this or any similar worksheet, to gather your information.

We aim to keep this easy. Use the method you prefer.

If you had us prepare your 1099’s last year, we have attached a copy of them to this letter. Many of our clients, pay the same people,
year after year. Continue to verify with the recipient that the information you are providing us is still ALL the same. Things change.
People create trusts. They change their tax filing status. Don’t assume the information is the same.


How can I get more information?

The IRS website www.irs.gov, has a tremendous amount of information regarding the 1099 filing requirements or we are more than
happy to assist you.

If you have any further questions, feel free to give any one of our accountants a call.

Sincerely yours,



Your Accountant
Glynn Accounting & Tax Service




 Coldwell Banker Glynn Realty, Inc.            Glynn Financial Services LLC                     Glynn Accounting & Tax Service
     _________________________________________________________________________________________________________________

         (262) 644-6915                                                 (262) 644-8479                                            (262) 644-2053




F:\ac\master\1099\2007 1099 mailer\1099 letter 2007.doc
                                                                                                   The Glynn Group, Ltd.

                                                                                                                 P.O. Box 183
                                                                                                      1155 E. Commerce Blvd.
                                                                                                            Slinger, WI 53086
                                                                                                          Fax (262) 644-7777
                                                                                                          www.glynngroup.net



                                                               (A):Level of Service
                                                                  1099 Preparation
Individual responsible for the 1099 requirements: __________________________________ (please sign)

                                            Company Name:          __________________________
                                                     Date:         _______________


Pease indicate the level of service requested, sign, date and return this to our office as soon as possible.

Obviously, the Ultimate level of service requires in some cases hours of research time and compilation, compared to the
Silver, where we are only providing clerical service. Gold or Silver service may require additional fees, in the event the
1099’s need amending. Each level of service will be billed according to the time spent.




_____BRONZE


_____SILVER (Clerical Service)


_____GOLD


_____ULTIMATE (Full Service)


_____OTHER:




            **See back for explanation of each service.


   Coldwell Banker Glynn Realty, Inc.          Glynn Accounting & Tax Service                  Glynn Financial Services LLC
__________________________________________________________________________________________________________________________

             (262) 644-6915                                         (262) 644-2053                    (262) 644-8479




F:\ac\master\1099\2007 1099 mailer\1099 level of service.doc
            Bronze
             I have reviewed my records and I have no 1099 reporting requirements for the year 2007!


            Silver

            Glynn Accounting & Tax Service will prepare the 1099’s from the data filled out on the sheets that are enclosed.
            We will not verify the accuracy or question the accuracy, but are being engaged to provide a clerical service to
            produce the forms for mail to the government, as well as to the recipient.

            Our silver service fees: We charge per series of forms. A 1099-MISC is one series. A 1099-DIV is one
            series. A 1099-INt is one series, etc, because that is the way they are printed and batched.

            For each series:

            1 to 4 recipients:     $55.00
            5 to 10 recipients:    $75.00
            11 to 20 recipients: $95.00
            21 to 30 recipients: $150.00
            31 and above       (quote available)

            Ex: If you have to file a Form 1099-MISC and a 1099-INT, each with one recipient, the fee is $55 x 2 series =
            $110.00


            Gold

           Glynn Accounting & Tax Service has your compiled data or has the ability to review your data from your software,
           but you wish to provide us with the 1099 data filled out on the sheets that are enclosed. Glynn Accounting Service
           will verify that the items you have indicated on the sheet are accurate to your data whenever possible, prior to
           printing them for mail to the government, as well as the recipient. Glynn Accounting & Tax Service will not review
           your data, to see if any are missing, and will accept the items given to us as being accurate. This level of service is
           not as thorough, but we will review the main areas we feel are critical for compliance.

           Our fees will be our standard billing rates for the review by the accountant.
           Fees for printing portion, will be the same as our Silver service fees.


            Ultimate

            If Glynn Accounting & Tax Service has compiled your data from source documents during the year to produce your
            financial statements, or has the ability to review your data from your software, they will assist to determine who are
            the individuals or firms that are 1099 reporting possibilities, assist to retrieve addresses and ID#’s whenever
            possible, work with the client to verify the accuracy of the findings and prepare the 1099’s for mail to the
            government, as well as the recipient.

            Our fees will be at our standard billing rates for the accountant to compile and review the work.
            Fees for the printing portion, will be the same as our Silver service fees.

            Other

            If you would like some other kind of service, contact your accountant.


   Coldwell Banker Glynn Realty, Inc.          Glynn Accounting & Tax Service                  Glynn Financial Services LLC
__________________________________________________________________________________________________________________________

             (262) 644-6915                                    (262) 644-2053                               (262) 644-8479




F:\ac\master\1099\2007 1099 mailer\1099 level of service.doc
                                                                                                                      The Glynn Group, Ltd.

                                                                                                                                       P.O. Box 183
                                                                                                                            1155 E. Commerce Blvd.
                                                                                                                                  Slinger, WI 53086
                                                                                                                                Fax (262) 644-7777
                                                                                                                                www.glynngroup.net


                                                    (B) : 1099 Questionnaire – 2007

Client Name:_______________________________



*******Note….Our mailing list is compiled, from a database that represents all of our clients that filed a Schedule
C, F or other business entity tax return for the tax year 2006. If this memo does not pertain to you, please notify
your accountant if you have no filing requirements for this year.


                                       Please Checkmark “Yes” or “No” to all these questions!

                       1099-MISC - Miscellaneous Transactions/Non-employee Compensation:

Did your business, pay any individual, sole proprietor, estate, trust, LLC, Partnership or Corporation, payments in
              excess of $600 for: (Refer to the memo for eligible recipients)
Yes No

____ ____                Rents (Box 1): Did your business pay rent to any person or entity (other than a corporation), in excess of $600 for
                         rental space, garage space, manufacturing space, pasture rentals, machine rentals (Ex. Renting a bulldozer to level
                         your parking lot) or rents paid to a corporate officer for use of their residence in 2007?

                         Note: If machine rental is part of a contract that includes both the use of the machine and the operator, the rental shall
                         be prorated & shown as rent paid and non-employee compensation paid. (Ex. Farmer hires another person to combine
                         his oats.) Farmer must send this person a 1099, showing the amount paid for the rental of the machine & amount paid
                         for his labor separately.


                         Other income (Box 3):

____ ____                Any punitive damages, damages for nonphysical injuries or sickness, and any other taxable damages.
____ ____                Deceased employee payments for wages paid after their death?
____ ____                termination payments to former self-employed insurance salespeople.

____ ____                Backup Withholding: (Box 4) The IRS requires you to withhold 28% of a payment made to any person, entity or
                         corporation that fails to provide you with their Federal Identification Number or Social Security Number, prior to paying
                         them. If you withhold funds from the payment that is due to them, this money is payable to the IRS. You then need to
                         report this withholding to them on their 1099.

                         Please contact us immediately for assistance on how to handle the backup withholding.



    Coldwell Banker Glynn Realty, Inc.          Glynn Accounting & Tax Service                  Glynn Financial Services LLC
     _________________________________________________________________________________________________________________

                 (262) 644-6915                                   (262) 644-8479                                        (262) 644-2053




F:\ac\master\1099\2007 1099 mailer\1099 questionnaire_2007.doc
Did your business, pay any individual, sole proprietor, estate, trust, LLC, Partnership or Corporation, payments in
              excess of $600 for: (Refer to the memo for eligible recipients)


                         Nonemployee compensaton (Box 7)

____ ____                Accounting fees? (Note: Glynn Accounting is a corporation)

____ ____                Referral fees or fee splitting to any other professional?

____ ____                Payments to witnesses? (Attorney’s usually pay these)

____ ____                For services, like to a subcontractor you hired? If you paid for services that included parts & labor, like having
                         your truck, machines or tractors repaired, do not separate out the parts and labor!

____ ____                Awards or commissions to any individual that are not your employees?

____ ____                Non-employee entertainers, like bands or DJ’s you hired?

____ ____                Any fees for travel expenses to individuals that are not your employees?

____ ____                Exchange your services for the services of another? (Ex. Painter paints law firm in exchange for legal service.
                         Retailer gives product in exchange for a contractor to fix their furnace.) These exchanges are taxable!

____ ____                Farm, veterinary or machine repairs?

____ ____                Directors’ fees for members of your Board?

____ ____                Fringe benefits to a non-employee?

____ ____                Prizes & awards: Did your business pay any person or entity, payments in the excess of $600 for prizes or awards that
                         are not for services performed? Do not include prizes & awards paid to your employees.

____ ____                Legal fees in the ordinary course of your business?

____ ____                Direct Sales in Excess of $5000: (Box 9) : Did your business pay more than $5000 in sales to any person or entity,
                         for CONSUMER products that are sold on a buy-sell, deposit-commission, or other commission basis for resale (by the
                         buyer or any other person), anywhere other than in a permanent retail establishment.
                         Note: No dollar amount is necessary, but a form still needs to be sent. An example would be like you run a business
                         selling candles. You hire people below you to sell them door-to-door for commission. If they sell more than $5000
                         worth of candles, you need to send them a 1099 form.

____ ____                Gross Proceeds Paid to Attorney: (Box 14): Did your business make any payments to an attorney for services in
                         connection with a settlement agreement? You need to report the gross proceeds paid to an attorney in connection
                         with legal services (regardless of whether the services are performed for the payer). The term attorney, includes a law
                         firm or other provider of legal services!




    Coldwell Banker Glynn Realty, Inc.          Glynn Accounting & Tax Service                  Glynn Financial Services LLC
     _________________________________________________________________________________________________________________

                 (262) 644-6915                                    (262) 644-8479                                       (262) 644-2053




F:\ac\master\1099\2007 1099 mailer\1099 questionnaire_2007.doc
                                                                     1099-INT (Interest)

____ ____                Interest: Did your business pay to any person or entity (other than a corporation), in excess of $10 in
                         interest? Do not include payments made to banks or financial institutions, credit card vendors.


                                                                 1099-DIV (Corporate issues)

____ ____                Dividends: Did your business pay any dividends (including capital gains) or other stock distributions in
                         excess of $10?

____ ____                Cash Liquidating Distributions: Did your business pay any cash distributions as part of a liquidation to a
                         shareholder? Contact your accountant for assistance.

____ ____                Non-Cash Liquidating Distributions: Did your business pay any non-cash distributions as part of a
                         liquidation to a shareholder? What was the fair market value as of the date of the distribution? Contact
                         your accountant for assistance.

____ ____                Wisconsin Transfer of Shares: Did your business transfer any shares of stock to an individual? Contact
                         your accountant for assistance.



                         Notes to your Accountant:

                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ____________________________________________________________________________________
                         ________________________________________________________________________________


                         I have reviewed the above topics and know that I am ultimately responsible for understanding these rules
                         and gathering the necessary information needed to be compliant with the 1099 reporting rules.



                         Signature of Client:_____________________________________

                         Date: ____________________________




    Coldwell Banker Glynn Realty, Inc.          Glynn Accounting & Tax Service                  Glynn Financial Services LLC
     _________________________________________________________________________________________________________________

                 (262) 644-6915                                         (262) 644-8479                       (262) 644-2053




F:\ac\master\1099\2007 1099 mailer\1099 questionnaire_2007.doc
                                         Your Company Name:
                                       Your Company Address:
                                           Your City, State, Zip
               Your Company Fed ID# or Soc.Security #:
                                  Your Area Code & Phone #
                                          Your E-mail address: _____________________________Date __________


Note: If the recipient is a Partnership or LLC, use their Federal ID#. If the recipient is a
sole proprietor use their Social Security #, for a Single-Member LLC, use SSN or Fed Id# if applicable.


       Recipient Name:                                                  Gross Amount Paid $
       Business Name:                                                   Federal Withholding$
    Recipient Address:                                                   State Withholding $
        City, State, Zip:                                                                Rent    NonEmployee
      Recipient Fed Id:                                                              Dividend    Compensation

         Recipient SSN:                                                               Interest   *Other Income
        * Explain Other:


       Recipient Name:                                                  Gross Amount Paid $
       Business Name:                                                   Federal Withholding$
    Recipient Address:                                                   State Withholding $
        City, State, Zip:                                                                Rent    NonEmployee
      Recipient Fed Id:                                                              Dividend    Compensation

         Recipient SSN:                                                               Interest   *Other Income
        * Explain Other:


       Recipient Name:                                                  Gross Amount Paid $
       Business Name:                                                   Federal Withholding$
    Recipient Address:                                                   State Withholding $
        City, State, Zip:                                                                Rent    NonEmployee
      Recipient Fed Id:                                                              Dividend    Compensation

         Recipient SSN:                                                               Interest   *Other Income
        * Explain Other:




      f:\ac\master\1099\1099WKST.XLS    11/14/2006
  Recipient Name:                              Gross Amount Paid $
  Business Name:                               Federal Withholding$
Recipient Address:                              State Withholding $
   City, State, Zip:                                          Rent    NonEmployee
 Recipient Fed Id:                                        Dividend    Compensation

    Recipient SSN:                                         Interest   *Other Income
   * Explain Other:


  Recipient Name:                              Gross Amount Paid $
  Business Name:                               Federal Withholding$
Recipient Address:                              State Withholding $
   City, State, Zip:                                          Rent    NonEmployee
 Recipient Fed Id:                                        Dividend    Compensation

    Recipient SSN:                                         Interest   *Other Income
   * Explain Other:


  Recipient Name:                              Gross Amount Paid $
  Business Name:                               Federal Withholding$
Recipient Address:                              State Withholding $
   City, State, Zip:                                          Rent    NonEmployee
 Recipient Fed Id:                                        Dividend    Compensation

    Recipient SSN:                                         Interest   *Other Income
   * Explain Other:


  Recipient Name:                              Gross Amount Paid $
  Business Name:                               Federal Withholding$
Recipient Address:                              State Withholding $
   City, State, Zip:                                          Rent    NonEmployee
 Recipient Fed Id:                                        Dividend    Compensation

    Recipient SSN:                                         Interest   *Other Income
   * Explain Other:


  Recipient Name:                              Gross Amount Paid $
  Business Name:                               Federal Withholding$
Recipient Address:                              State Withholding $
   City, State, Zip:                                          Rent    NonEmployee
 Recipient Fed Id:                                        Dividend    Compensation

   Recipient SSN:                                          Interest   *Other Income
   * Explain Other:



 f:\ac\master\1099\1099WKST.XLS   11/14/2006
Form
(Rev. October 2007)
                                       W-9                                          Request for Taxpayer                                                                 Give form to the
                                                                                                                                                                         requester. Do not
Department of the Treasury
                                                                          Identification Number and Certification                                                        send to the IRS.
Internal Revenue Service
                                       Name (as shown on your income tax return)
See Specific Instructions on page 2.




                                       Business name, if different from above
           Print or type




                                       Check appropriate box:       Individual/Sole proprietor          Corporation         Partnership
                                                                                                                                                                           Exempt
                                          Limited liability company. Enter the tax classification (D=disregarded entity, C=corporation, P=partnership)                     payee
                                           Other (see instructions)
                                       Address (number, street, and apt. or suite no.)                                                        Requester’s name and address (optional)


                                       City, state, and ZIP code


                                       List account number(s) here (optional)


       Part I                                Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. The TIN provided must match the name given on Line 1 to avoid                                                     Social security number
backup withholding. For individuals, this is your social security number (SSN). However, for a resident
alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is
your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3.                                                                   or
 Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose                                                          Employer identification number
 number to enter.
      Part II                                Certification
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and
2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal
    Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has
    notified me that I am no longer subject to backup withholding, and
3. I am a U.S. citizen or other U.S. person (defined below).
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup
withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply.
For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement
arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must
provide your correct TIN. See the instructions on page 4.

Sign                                       Signature of
Here                                       U.S. person                                                                                     Date

General Instructions                                                                                                 Definition of a U.S. person. For federal tax purposes, you are
                                                                                                                     considered a U.S. person if you are:
Section references are to the Internal Revenue Code unless
otherwise noted.                                                                                                     ● An individual who is a U.S. citizen or U.S. resident alien,
                                                                                                                     ● A partnership, corporation, company, or association created or
Purpose of Form                                                                                                      organized in the United States or under the laws of the United
A person who is required to file an information return with the                                                      States,
IRS must obtain your correct taxpayer identification number (TIN)                                                    ● An estate (other than a foreign estate), or
to report, for example, income paid to you, real estate                                                              ● A domestic trust (as defined in Regulations section
transactions, mortgage interest you paid, acquisition or                                                             301.7701-7).
abandonment of secured property, cancellation of debt, or
                                                                                                                     Special rules for partnerships. Partnerships that conduct a
contributions you made to an IRA.
                                                                                                                     trade or business in the United States are generally required to
   Use Form W-9 only if you are a U.S. person (including a                                                           pay a withholding tax on any foreign partners’ share of income
resident alien), to provide your correct TIN to the person                                                           from such business. Further, in certain cases where a Form W-9
requesting it (the requester) and, when applicable, to:                                                              has not been received, a partnership is required to presume that
  1. Certify that the TIN you are giving is correct (or you are                                                      a partner is a foreign person, and pay the withholding tax.
waiting for a number to be issued),                                                                                  Therefore, if you are a U.S. person that is a partner in a
                                                                                                                     partnership conducting a trade or business in the United States,
   2. Certify that you are not subject to backup withholding, or                                                     provide Form W-9 to the partnership to establish your U.S.
   3. Claim exemption from backup withholding if you are a U.S.                                                      status and avoid withholding on your share of partnership
exempt payee. If applicable, you are also certifying that as a                                                       income.
U.S. person, your allocable share of any partnership income from                                                        The person who gives Form W-9 to the partnership for
a U.S. trade or business is not subject to the withholding tax on                                                    purposes of establishing its U.S. status and avoiding withholding
foreign partners’ share of effectively connected income.                                                             on its allocable share of net income from the partnership
Note. If a requester gives you a form other than Form W-9 to                                                         conducting a trade or business in the United States is in the
request your TIN, you must use the requester’s form if it is                                                         following cases:
substantially similar to this Form W-9.
                                                                                                                     ● The U.S. owner of a disregarded entity and not the entity,
                                                                                                         Cat. No. 10231X                                               Form   W-9   (Rev. 10-2007)
Form W-9 (Rev. 10-2007)                                                                                                             Page   2
● The U.S. grantor or other owner of a grantor trust and not the         4. The IRS tells you that you are subject to backup
trust, and                                                             withholding because you did not report all your interest and
● The U.S. trust (other than a grantor trust) and not the              dividends on your tax return (for reportable interest and
beneficiaries of the trust.                                            dividends only), or
Foreign person. If you are a foreign person, do not use Form             5. You do not certify to the requester that you are not subject
W-9. Instead, use the appropriate Form W-8 (see Publication            to backup withholding under 4 above (for reportable interest and
515, Withholding of Tax on Nonresident Aliens and Foreign              dividend accounts opened after 1983 only).
Entities).                                                               Certain payees and payments are exempt from backup
                                                                       withholding. See the instructions below and the separate
Nonresident alien who becomes a resident alien. Generally,             Instructions for the Requester of Form W-9.
only a nonresident alien individual may use the terms of a tax
treaty to reduce or eliminate U.S. tax on certain types of income.       Also see Special rules for partnerships on page 1.
However, most tax treaties contain a provision known as a
“saving clause.” Exceptions specified in the saving clause may
                                                                       Penalties
permit an exemption from tax to continue for certain types of          Failure to furnish TIN. If you fail to furnish your correct TIN to a
income even after the payee has otherwise become a U.S.                requester, you are subject to a penalty of $50 for each such
resident alien for tax purposes.                                       failure unless your failure is due to reasonable cause and not to
   If you are a U.S. resident alien who is relying on an exception     willful neglect.
contained in the saving clause of a tax treaty to claim an             Civil penalty for false information with respect to
exemption from U.S. tax on certain types of income, you must           withholding. If you make a false statement with no reasonable
attach a statement to Form W-9 that specifies the following five       basis that results in no backup withholding, you are subject to a
items:                                                                 $500 penalty.
   1. The treaty country. Generally, this must be the same treaty      Criminal penalty for falsifying information. Willfully falsifying
under which you claimed exemption from tax as a nonresident            certifications or affirmations may subject you to criminal
alien.                                                                 penalties including fines and/or imprisonment.
   2. The treaty article addressing the income.                        Misuse of TINs. If the requester discloses or uses TINs in
   3. The article number (or location) in the tax treaty that          violation of federal law, the requester may be subject to civil and
contains the saving clause and its exceptions.                         criminal penalties.
  4. The type and amount of income that qualifies for the
exemption from tax.                                                    Specific Instructions
   5. Sufficient facts to justify the exemption from tax under the     Name
terms of the treaty article.
                                                                       If you are an individual, you must generally enter the name
   Example. Article 20 of the U.S.-China income tax treaty allows
                                                                       shown on your income tax return. However, if you have changed
an exemption from tax for scholarship income received by a
                                                                       your last name, for instance, due to marriage without informing
Chinese student temporarily present in the United States. Under
                                                                       the Social Security Administration of the name change, enter
U.S. law, this student will become a resident alien for tax
                                                                       your first name, the last name shown on your social security
purposes if his or her stay in the United States exceeds 5
                                                                       card, and your new last name.
calendar years. However, paragraph 2 of the first Protocol to the
U.S.-China treaty (dated April 30, 1984) allows the provisions of         If the account is in joint names, list first, and then circle, the
Article 20 to continue to apply even after the Chinese student         name of the person or entity whose number you entered in Part I
becomes a resident alien of the United States. A Chinese               of the form.
student who qualifies for this exception (under paragraph 2 of         Sole proprietor. Enter your individual name as shown on your
the first protocol) and is relying on this exception to claim an       income tax return on the “Name” line. You may enter your
exemption from tax on his or her scholarship or fellowship             business, trade, or “doing business as (DBA)” name on the
income would attach to Form W-9 a statement that includes the          “Business name” line.
information described above to support that exemption.
                                                                       Limited liability company (LLC). Check the “Limited liability
   If you are a nonresident alien or a foreign entity not subject to   company” box only and enter the appropriate code for the tax
backup withholding, give the requester the appropriate                 classification (“D” for disregarded entity, “C” for corporation, “P”
completed Form W-8.                                                    for partnership) in the space provided.
What is backup withholding? Persons making certain payments               For a single-member LLC (including a foreign LLC with a
to you must under certain conditions withhold and pay to the           domestic owner) that is disregarded as an entity separate from
IRS 28% of such payments. This is called “backup withholding.”         its owner under Regulations section 301.7701-3, enter the
Payments that may be subject to backup withholding include             owner’s name on the “Name” line. Enter the LLC’s name on the
interest, tax-exempt interest, dividends, broker and barter            “Business name” line.
exchange transactions, rents, royalties, nonemployee pay, and
certain payments from fishing boat operators. Real estate                For an LLC classified as a partnership or a corporation, enter
transactions are not subject to backup withholding.                    the LLC’s name on the “Name” line and any business, trade, or
                                                                       DBA name on the “Business name” line.
   You will not be subject to backup withholding on payments
you receive if you give the requester your correct TIN, make the       Other entities. Enter your business name as shown on required
proper certifications, and report all your taxable interest and        federal tax documents on the “Name” line. This name should
dividends on your tax return.                                          match the name shown on the charter or other legal document
                                                                       creating the entity. You may enter any business, trade, or DBA
Payments you receive will be subject to backup                         name on the “Business name” line.
withholding if:                                                        Note. You are requested to check the appropriate box for your
   1. You do not furnish your TIN to the requester,                    status (individual/sole proprietor, corporation, etc.).
   2. You do not certify your TIN when required (see the Part II       Exempt Payee
instructions on page 3 for details),
   3. The IRS tells the requester that you furnished an incorrect      If you are exempt from backup withholding, enter your name as
TIN,                                                                   described above and check the appropriate box for your status,
                                                                       then check the “Exempt payee” box in the line following the
                                                                       business name, sign and date the form.
Form W-9 (Rev. 10-2007)                                                                                                                         Page   3
Generally, individuals (including sole proprietors) are not exempt                  Part I. Taxpayer Identification
from backup withholding. Corporations are exempt from backup
withholding for certain payments, such as interest and dividends.                   Number (TIN)
Note. If you are exempt from backup withholding, you should                         Enter your TIN in the appropriate box. If you are a resident
still complete this form to avoid possible erroneous backup                         alien and you do not have and are not eligible to get an SSN,
withholding.                                                                        your TIN is your IRS individual taxpayer identification number
   The following payees are exempt from backup withholding:                         (ITIN). Enter it in the social security number box. If you do not
                                                                                    have an ITIN, see How to get a TIN below.
   1. An organization exempt from tax under section 501(a), any
IRA, or a custodial account under section 403(b)(7) if the account                     If you are a sole proprietor and you have an EIN, you may
satisfies the requirements of section 401(f)(2),                                    enter either your SSN or EIN. However, the IRS prefers that you
                                                                                    use your SSN.
   2. The United States or any of its agencies or                                      If you are a single-member LLC that is disregarded as an
instrumentalities,                                                                  entity separate from its owner (see Limited liability company
  3. A state, the District of Columbia, a possession of the United                  (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner
States, or any of their political subdivisions or instrumentalities,                has one). Do not enter the disregarded entity’s EIN. If the LLC is
  4. A foreign government or any of its political subdivisions,                     classified as a corporation or partnership, enter the entity’s EIN.
agencies, or instrumentalities, or                                                  Note. See the chart on page 4 for further clarification of name
   5. An international organization or any of its agencies or                       and TIN combinations.
instrumentalities.                                                                  How to get a TIN. If you do not have a TIN, apply for one
                                                                                    immediately. To apply for an SSN, get Form SS-5, Application
   Other payees that may be exempt from backup withholding                          for a Social Security Card, from your local Social Security
include:                                                                            Administration office or get this form online at www.ssa.gov. You
   6. A corporation,                                                                may also get this form by calling 1-800-772-1213. Use Form
  7. A foreign central bank of issue,                                               W-7, Application for IRS Individual Taxpayer Identification
  8. A dealer in securities or commodities required to register in                  Number, to apply for an ITIN, or Form SS-4, Application for
the United States, the District of Columbia, or a possession of                     Employer Identification Number, to apply for an EIN. You can
the United States,                                                                  apply for an EIN online by accessing the IRS website at
                                                                                    www.irs.gov/businesses and clicking on Employer Identification
   9. A futures commission merchant registered with the                             Number (EIN) under Starting a Business. You can get Forms W-7
Commodity Futures Trading Commission,                                               and SS-4 from the IRS by visiting www.irs.gov or by calling
  10. A real estate investment trust,                                               1-800-TAX-FORM (1-800-829-3676).
  11. An entity registered at all times during the tax year under                      If you are asked to complete Form W-9 but do not have a TIN,
the Investment Company Act of 1940,                                                 write “Applied For” in the space for the TIN, sign and date the
                                                                                    form, and give it to the requester. For interest and dividend
  12. A common trust fund operated by a bank under section                          payments, and certain payments made with respect to readily
584(a),                                                                             tradable instruments, generally you will have 60 days to get a
  13. A financial institution,                                                      TIN and give it to the requester before you are subject to backup
  14. A middleman known in the investment community as a                            withholding on payments. The 60-day rule does not apply to
nominee or custodian, or                                                            other types of payments. You will be subject to backup
                                                                                    withholding on all such payments until you provide your TIN to
  15. A trust exempt from tax under section 664 or described in                     the requester.
section 4947.
                                                                                    Note. Entering “Applied For” means that you have already
  The chart below shows types of payments that may be                               applied for a TIN or that you intend to apply for one soon.
exempt from backup withholding. The chart applies to the                            Caution: A disregarded domestic entity that has a foreign owner
exempt payees listed above, 1 through 15.                                           must use the appropriate Form W-8.
IF the payment is for . . .                 THEN the payment is exempt              Part II. Certification
                                            for . . .
                                                                                    To establish to the withholding agent that you are a U.S. person,
Interest and dividend payments              All exempt payees except                or resident alien, sign Form W-9. You may be requested to sign
                                            for 9                                   by the withholding agent even if items 1, 4, and 5 below indicate
Broker transactions                         Exempt payees 1 through 13.             otherwise.
                                            Also, a person registered under            For a joint account, only the person whose TIN is shown in
                                            the Investment Advisers Act of          Part I should sign (when required). Exempt payees, see Exempt
                                            1940 who regularly acts as a            Payee on page 2.
                                            broker                                  Signature requirements. Complete the certification as indicated
Barter exchange transactions                Exempt payees 1 through 5               in 1 through 5 below.
and patronage dividends                                                                1. Interest, dividend, and barter exchange accounts
                                                                                    opened before 1984 and broker accounts considered active
Payments over $600 required                 Generally, exempt payees
                                                        2                           during 1983. You must give your correct TIN, but you do not
to be reported and direct                   1 through 7                             have to sign the certification.
                  1
sales over $5,000
                                                                                       2. Interest, dividend, broker, and barter exchange
1                                                                                   accounts opened after 1983 and broker accounts considered
    See Form 1099-MISC, Miscellaneous Income, and its instructions.
2                                                                                   inactive during 1983. You must sign the certification or backup
    However, the following payments made to a corporation (including gross
    proceeds paid to an attorney under section 6045(f), even if the attorney is a
                                                                                    withholding will apply. If you are subject to backup withholding
    corporation) and reportable on Form 1099-MISC are not exempt from               and you are merely providing your correct TIN to the requester,
    backup withholding: medical and health care payments, attorneys’ fees, and      you must cross out item 2 in the certification before signing the
    payments for services paid by a federal executive agency.                       form.
Form W-9 (Rev. 10-2007)                                                                                                                                           Page   4
   3. Real estate transactions. You must sign the certification.                                     Secure Your Tax Records from Identity Theft
You may cross out item 2 of the certification.
                                                                                                     Identity theft occurs when someone uses your personal
   4. Other payments. You must give your correct TIN, but you                                        information such as your name, social security number (SSN), or
do not have to sign the certification unless you have been                                           other identifying information, without your permission, to commit
notified that you have previously given an incorrect TIN. “Other                                     fraud or other crimes. An identity thief may use your SSN to get
payments” include payments made in the course of the                                                 a job or may file a tax return using your SSN to receive a refund.
requester’s trade or business for rents, royalties, goods (other
than bills for merchandise), medical and health care services                                           To reduce your risk:
(including payments to corporations), payments to a                                                  ● Protect your SSN,
nonemployee for services, payments to certain fishing boat crew                                      ● Ensure your employer is protecting your SSN, and
members and fishermen, and gross proceeds paid to attorneys                                          ● Be careful when choosing a tax preparer.
(including payments to corporations).
                                                                                                        Call the IRS at 1-800-829-1040 if you think your identity has
  5. Mortgage interest paid by you, acquisition or                                                   been used inappropriately for tax purposes.
abandonment of secured property, cancellation of debt,
qualified tuition program payments (under section 529), IRA,                                            Victims of identity theft who are experiencing economic harm
Coverdell ESA, Archer MSA or HSA contributions or                                                    or a system problem, or are seeking help in resolving tax
distributions, and pension distributions. You must give your                                         problems that have not been resolved through normal channels,
correct TIN, but you do not have to sign the certification.                                          may be eligible for Taxpayer Advocate Service (TAS) assistance.
                                                                                                     You can reach TAS by calling the TAS toll-free case intake line
                                                                                                     at 1-877-777-4778 or TTY/TDD 1-800-829-4059.
What Name and Number To Give the Requester
                                                                                                     Protect yourself from suspicious emails or phishing
          For this type of account:                         Give name and SSN of:                    schemes. Phishing is the creation and use of email and
                                                                                                     websites designed to mimic legitimate business emails and
    1. Individual                                    The individual
                                                                                                     websites. The most common act is sending an email to a user
    2. Two or more individuals (joint                The actual owner of the account or,
       account)                                      if combined funds, the first
                                                                                                     falsely claiming to be an established legitimate enterprise in an
                                                     individual on the account
                                                                               1
                                                                                                     attempt to scam the user into surrendering private information
    3. Custodian account of a minor                  The minor
                                                                 2                                   that will be used for identity theft.
       (Uniform Gift to Minors Act)
                                                                               1
                                                                                                        The IRS does not initiate contacts with taxpayers via emails.
    4. a. The usual revocable savings                The grantor-trustee                             Also, the IRS does not request personal detailed information
       trust (grantor is also trustee)                                                               through email or ask taxpayers for the PIN numbers, passwords,
                                                                           1
       b. So-called trust account that is            The actual owner                                or similar secret access information for their credit card, bank, or
       not a legal or valid trust under                                                              other financial accounts.
       state law
    5. Sole proprietorship or disregarded            The owner
                                                                   3
                                                                                                        If you receive an unsolicited email claiming to be from the IRS,
       entity owned by an individual                                                                 forward this message to phishing@irs.gov. You may also report
                                                            Give name and EIN of:
                                                                                                     misuse of the IRS name, logo, or other IRS personal property to
          For this type of account:
                                                                                                     the Treasury Inspector General for Tax Administration at
 6. Disregarded entity not owned by an               The owner                                       1-800-366-4484. You can forward suspicious emails to the
    individual                                                                                       Federal Trade Commission at: spam@uce.gov or contact them at
                                                                       4
 7. A valid trust, estate, or pension trust          Legal entity                                    www.consumer.gov/idtheft or 1-877-IDTHEFT(438-4338).
 8. Corporate or LLC electing                        The corporation
    corporate status on Form 8832                                                                      Visit the IRS website at www.irs.gov to learn more about
 9. Association, club, religious,                    The organization                                identity theft and how to reduce your risk.
    charitable, educational, or other
    tax-exempt organization
10. Partnership or multi-member LLC                  The partnership
11. A broker or registered nominee                   The broker or nominee
12. Account with the Department of                   The public entity
    Agriculture in the name of a public
    entity (such as a state or local
    government, school district, or
    prison) that receives agricultural
    program payments
1
    List first and circle the name of the person whose number you furnish. If only one person
    on a joint account has an SSN, that person’s number must be furnished.
2
    Circle the minor’s name and furnish the minor’s SSN.
3
    You must show your individual name and you may also enter your business or “DBA”
    name on the second name line. You may use either your SSN or EIN (if you have one),
    but the IRS encourages you to use your SSN.
4
    List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN
    of the personal representative or trustee unless the legal entity itself is not designated in
    the account title.) Also see Special rules for partnerships on page 1.

Note. If no name is circled when more than one name is listed,
the number will be considered to be that of the first name listed.

Privacy Act Notice
Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons who must file information returns with the IRS to report interest,
dividends, and certain other income paid to you, mortgage interest you paid, the acquisition or abandonment of secured property, cancellation of debt, or
contributions you made to an IRA, or Archer MSA or HSA. The IRS uses the numbers for identification purposes and to help verify the accuracy of your tax return.
The IRS may also provide this information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S.
possessions to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal
nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
  You must provide your TIN whether or not you are required to file a tax return. Payers must generally withhold 28% of taxable interest, dividend, and certain other
payments to a payee who does not give a TIN to a payer. Certain penalties may also apply.
                                                                                                           The Glynn Group, Ltd.

                                                                                                                           P.O. Box 183
                                                                                                                 1155 E. Commerce Blvd.
                                                                                                                      Slinger, WI 53086
                                                                                                                     Fax (262) 644-7777
                                                                                                                   www.glynngroup.net

December 1, 2007




To Our Clients and Friends,

As we approach year-end, it's again time to focus on last-minute moves you can make to save taxes—both on
your 2007 return and in future years. Before we get to specific suggestions, remember that effective tax
planning requires considering both this year and next year—at least. Without a multiyear outlook, you can't be
sure maneuvers intended to save taxes on your 2007 return won't backfire and cost additional money in the
future.

                                                        AMT Makes It a Whole New Ball Game

Individuals must compute their income taxes under two systems—the regular tax system and the so-called
alternative minimum tax (AMT) system—and pay the higher of the two amounts. When introduced many years
ago, the AMT targeted and normally only applied to high-income taxpayers who benefited too much from
certain tax breaks. Today, however, virtually no taxpayer can ignore the AMT. Therefore, the first step in tax
planning is to assess your exposure to AMT. Tax planning for AMT is often dramatically different than planning
for regular tax. In fact, it's sometimes backwards.

Who is at the highest risk for AMT? Many taxpayers can fall into AMT, but those who deduct a significant
amount of state and local taxes (income, property, and/or sales taxes) or miscellaneous itemized deductions
(like unreimbursed employee business expenses), or claim multiple dependents are especially vulnerable. Those
who recognize a large capital gain or exercise incentive stock options during the year are also vulnerable. If you
suspect AMT might be an issue, please contact us so we can plan accordingly.

Now that we've addressed the AMT, let's move on to a variety of tax planning strategies that apply to the vast
majority of taxpayers—that is, those in a regular tax situation.

                                                         Strategies That Never Go Out of Style

Manage Your Adjusted Gross Income (AGI). Many tax breaks are only available to taxpayers with AGI
below certain levels. Some common AGI-based tax breaks include the child tax credit (phase-out begins at
$110,000 for married couples and $75,000 for heads-of-households), the $25,000 rental real estate passive
loss allowance (phase-out range of $100,000–$150,000 for most taxpayers), and the exclusion of social
security benefits ($32,000 threshold for married filers; $25,000 for other filers). In addition, taxpayers with
     Coldwell Banker Glynn Realty, Inc.               Glynn Accounting & Tax Service                       Glynn Financial Services LLC
    _________________________________________________________________________________________________________________________________

                 (262) 644-6915                                       (262) 644-8479                             (262) 644-2053




F:\AC\MASTER\1099\2007 1099 Mailer\Glynn Year end planning.doc
2007 AGI in excess of $156,400 begin losing part of their itemized deductions. Accordingly, strategies that
lower your income or increase certain deductions might not only reduce your taxable income, but also help
increase some of your other tax deductions and credits.

Defer Income and Accelerate Deductions. Due to the time value of money, it's better to pay taxes later
rather than sooner (assuming your tax rates won't be appreciably higher next year). Therefore, strategies that
defer income from the current year to later years and those that move deductions from later years into the
current year are always popular. How do you shift income and deductions between tax years? The most
common techniques are using income or deductions that you can easily control.

For example, cash-basis sole proprietors might delay year-end billings so that they fall in the following year. Of
course, before deferring income, you must assess the risk of doing so. On the investment side, income from
short-term (i.e., maturity of one year or less) obligations like Treasury Bills and short-term CDs is not
recognized until maturity. Income from those straddling year-end is deferred to the following year. For sales of
property, an installment sale will shift part of the gain to later years when the installment payments are
received.

On the deduction side, you can move charitable donations you normally would make in early 2008 to the end of
2007. If you're temporarily short on cash, charge the contribution to a credit card—it is deductible in the year
charged, not when payment is made on the card. You can also accelerate payments of your real estate taxes or
state income taxes otherwise due in early 2008. But, watch out for AMT, as these taxes are not deductible for
AMT. If you own a cash-basis business, you can accelerate payment of certain expenses, such as office supplies
and repairs and maintenance, to 2007.

                        Watch Out for New Stricter Rules for Charitable Contributions

For 2007, you cannot deduct any cash contribution unless you retain either a bank record that supports the
donation (such as a cancelled check or credit card receipt) or a written statement from the charity that meets
tax-law requirements. For cash donations of $250 or more, a bank record is not enough. You must obtain a
charity-provided statement that meets tax-law standards. Also, you cannot deduct donations of used clothing
and household items unless they are in good used condition or better. This includes furniture and furnishings,
electronics, appliances, linens, and the like. Be sure to keep a list and photo (to help establish the item's
condition) of donated items.

                           Kiddie Tax Alert:Will Your Child Be 18 or Older at Year-end?

When the Kiddie Tax hits part of your child's unearned income (typically from investments), it gets taxed at
your higher marginal rate rather than at your child's lower marginal rate. For 2007, the Kiddie Tax won't affect
a child who is age 18 or older as of year-end. Next year, however, the Kiddie Tax can hit part of the unearned
income of a child who will be age 18 and a full-time student who will be age 19 - 23 as of 12/31/08 if the child's
earned income (such as, wages) for the year does not exceed half of his or her support.

As you can see, your child could be exempt from the Kiddie Tax this year (because he or she will be 18 or older
at year-end), but not next year (because he or she will be a student age 19 - 23 without sufficient earned
income). In this scenario, consider having your child trigger some taxable gains and investment income this
year. They will be taxed at your child's lower rate. Next year, that might not be true due to the new Kiddie Tax
age rules. Keep in mind that, for this year, the Kiddie Tax only hits unearned income in excess of $1,700. The
threshold is expected to be $1,800 for 2008. Also, salaries and wages are not subject to this tax.

     Coldwell Banker Glynn Realty, Inc.               Glynn Accounting & Tax Service                       Glynn Financial Services LLC
    _________________________________________________________________________________________________________________________________

                 (262) 644-6915                                  (262) 644-8479                                  (262) 644-2053




F:\AC\MASTER\1099\2007 1099 Mailer\Glynn Year end planning.doc
                                                           Strategies Involving Your Securities

Harvesting Capital Losses. There's no question that this year the stock market has had its ups and downs. If
you are sitting on some investments that have dropped in value since you acquired them, now might be a good
time to dump part or all of them to cut your tax bill. You can deduct capital losses up to the amount of any
capital gains that you'll have for the year (for example, from mutual fund distributions or sales of stocks or
bonds). Also, you can claim up to an additional $3,000 of losses ($1,500 if you're married but filing a separate
return) against your other income. Any losses in excess of these amounts carry over to next year.

If you're selling less than your entire interest in an investment, you can maximize the amount of deductible loss
that you realize by telling your broker or mutual fund company to sell the highest basis shares first (and then
have them confirm your instructions in writing within a reasonable time after the sale). In addition, if you think
your investments that are currently underwater are poised for a comeback, you can buy them back after taking
a loss as long as you don't reacquire them within 30 days before or after the sale.

Timing Long-term Capital Gains (LTCGs). As you evaluate investments held in your taxable accounts,
consider the impact of selling appreciated securities. For 2007, regular federal income tax rates can go as high
as 35%, whereas the federal tax rate on LTCGs is 15% (it's 5% if you're in the 10% or 15 % regular tax
brackets). The preferential LTCG rates are only available for securities held for over one year. Therefore,
holding appreciated securities for over a year before selling makes great tax sense. That said, now may be a
great time to cash in some long-term winners to benefit from the historically low tax rates.

However, if you expect to be in the 10% or 15% regular income tax bracket for 2008, you might benefit from
postponing LTCGs until 2008 when your tax rate on LTCGs will be 0%—it doesn't get any better than that. For
2008, your tax bracket won't go over 15% (so your LTCGs will be taxed at 0%) if your taxable income
(including your LTCGs) doesn't go over about $65,000 if you're married and file jointly ($32,000 if you're
single).

Give Appreciated Securities to Your Child (or Grandchild). A great way to reduce the tax hit on an
appreciated security is to give it to your child or grandchild. The child can hold the security until a year when
the Kiddie Tax doesn't apply and then sell. (Take care to avoid the new Kiddie Tax rules that will kick in next
year.) The resulting capital gain may well be taxed at 0% if the sale takes place in 2008 - 2010 (assuming the
current rate structure is left in place). For example, in 2008, the 0% LTCG rate will apply if the child is single,
isn't subject to the Kiddie Tax, and has taxable income below $32,000.

Remember that giving the security to your child is considered a gift. However, you can use your annual $12,000
gift tax exclusion to shelter the transaction from any gift tax. For larger gifts, you can use up part of your $1
million lifetime gift tax exemption to avoid any gift tax hit. However, dipping into your $1 million exemption
could result in a higher estate tax bill after you die.

        Take Advantage of the Deduction for State Sales Taxes Before It Becomes
                                       History

The optional deduction for state and local sales and use taxes (in lieu of deducting state income taxes) will
expire at the end of this year unless Congress takes further action. If you live in a state with low or no state


     Coldwell Banker Glynn Realty, Inc.               Glynn Accounting & Tax Service                       Glynn Financial Services LLC
    _________________________________________________________________________________________________________________________________

                 (262) 644-6915                                        (262) 644-8479                            (262) 644-2053




F:\AC\MASTER\1099\2007 1099 Mailer\Glynn Year end planning.doc
income tax and plan on making big-ticket purchases (such as a new car or boat) in the near future, you may
want to go ahead and make them before year-end to cash in on the sales tax break for 2007.



                                                       Strategies for Seniors Age 70 1/2 Plus

Retirement Plan Distributions. If you're age 70 1/2 or older, you're normally subject to the so-called
minimum distribution rules with regard to your retirement plans (other than Roth IRAs). Under these rules, you
must receive at least a certain amount each year from your retirement accounts. You can always take out more
than the required amount, but anything less is subject to a 50% penalty on the shortfall amount.

If you turned age 70 1/2 in 2007, you can delay your 2007 required distribution to 2008 if you choose. But,
waiting until 2008 will result in two distributions in 2008—the amount required for 2007 plus the amount
required for 2008. While deferring income is normally a sound tax strategy, here it results in bunching income
into 2008. Thus, think twice before delaying your 2007 distribution to 2008—bunching income into 2008 might
throw you into a higher tax bracket or have a detrimental impact on your other tax deductions.

Charitable Donations from IRAs . If you've reached age 70 1/2, a law change from last year allows you to
arrange to transfer up to $100,000 of otherwise taxable IRA money (including your required minimum
distribution) to specified tax-exempt charities. Such a transfer is federal-income-tax-free to you, but you don't
get to claim it as an itemized deduction on your Form 1040. However, the tax-free treatment equates to a
100% write-off, and you don't have to itemize your deductions to get it. Additionally, as a write-off, it may
reduce your Social Security benefits subject to tax. Be careful—to qualify for this special tax break, the funds
must be transferred directly from your IRA to the charity. Also, this favorable provision will expire at the end of
this year unless Congress extends it. So, this could be your last chance.

                                                                   IRA Planning

Don't forget to make your 2007 traditional or Roth IRA contributions as soon as possible, but definitely before
the due date (4/15/08) of your tax return. Except in the case of the Roth IRA, the earnings in retirement
accounts are technically tax-deferred, not tax-free. However, funding them as soon as possible allows you to
defer more taxes for 2007. Thus, you benefit by keeping more funds invested for a longer period of time.

For 2007, combined Roth and traditional IRA contributions generally can be made up to the lesser of (1) $4,000
($5,000 if age 50 or older by the end of 2007) or (2) 100% of compensation. Compensation includes wages,
salaries, other amounts derived from or received for personal services actually rendered including self-
employment income, and alimony. For married couples, IRA contributions up to $4,000 ($5,000 if age 50 or
older by the end of 2007) can be made for each spouse if the combined compensation of both spouses is at
least equal to the contributed amount and they file a joint return.

If neither you nor your spouse (if you're married) are active participants in an employer-maintained retirement
plan, traditional IRA contributions are fully deductible. Otherwise, the amount of the traditional IRA contribution
that is deductible will be limited when your AGI exceeds certain limits.

Roth IRA contributions are never deductible. Nevertheless, it's hard to beat a Roth IRA because of the
availability of tax-free distributions if you satisfy certain conditions, the lack of mandatory distributions at age
70 1/2, and the option of withdrawing your contributions tax-free and penalty-free at any time. Unfortunately,
Roth IRA contributions are not allowed once your AGI exceeds $166,000 if you're married and file jointly or
$114,000 if you're not married. If you have earned income, but don't qualify for a Roth IRA or a deductible
     Coldwell Banker Glynn Realty, Inc.               Glynn Accounting & Tax Service                       Glynn Financial Services LLC
    _________________________________________________________________________________________________________________________________

                 (262) 644-6915                                     (262) 644-8479                               (262) 644-2053




F:\AC\MASTER\1099\2007 1099 Mailer\Glynn Year end planning.doc
traditional IRA, you may still want to make a nondeductible contribution to a traditional IRA to take advantage
of the tax deferred growth such accounts provide. Also, starting in 2010, all taxpayers will have the option of
converting their traditional IRAs to Roth IRAs (Currently only taxpayers with AGI of $100,000 or less can
convert a traditional IRA to a Roth IRA.).

                                                                 Go Green and Reap Tax Savings

Nonbusiness Energy Property Credit. This credit is generally limited to a lifetime amount of $500, although
other limits may also apply. Basically, the credit is (a) 10% of what you pay for qualified energy efficiency
improvements (such as certain energy efficient insulation, windows, doors and roofs), plus (b) 100% of what
you pay for qualified residential energy property (such as certain energy efficient heat pumps, hot water
heaters or boilers, and advanced main air circulating fans) on your principal residence (no vacation homes). If
you're going to go green, now may be the time—unless extended by Congress, this credit won't apply to
purchases made after 2007.

Hybrid Vehicle Credit. If you are considering a hybrid vehicle purchase in the near future, please give us a
call. The IRS is constantly updating the list of vehicles that qualify for tax credits, which can go as high as
$3,400. However, this credit is not allowed for alternative minimum tax. It is also phased out after the
manufacturer records the sale of the 60,000th hybrid vehicle. Under this rule, Lexus and Toyota purchases
made after 9/30/07 are not entitled to any credit. If you're considering another manufacturer's hybrid, you may
want to act fast before it reaches this limit (assuming AMT is not an issue)

                                                                   Tax Planning at the Office

401(k) Plans. If you have a 401(k) plan at work, it's just about time to tell your company how much you want
to set aside on a tax-free basis for next year. Contribute as much as you can stand, especially if your employer
makes matching contributions. You give up "free money" when you fail to participate to the max for the match.

Cafeteria Plan Flexible Spending Accounts (FSAs). If your company has an FSA, before year-end you must
specify how much of your 2008 salary you wish to convert into tax-free contributions to the plan. You can then
take tax-free withdrawals next year to reimburse yourself for out-of-pocket medical and dental expenses and
qualifying child care costs. One word of caution, though, FSAs are "use-it-or-lose-it" accounts. Thus, you don't
want to set aside more in such an account than what you'll likely have in qualifying expenses for the year.

Married couples who both have access to an FSA will also need to decide whose FSA to use. If one spouse's
salary is likely to be higher than what's known as the FICA wage limit (which is $97,500 for this year and will be
somewhat higher next year) and the other spouse's will be less, the one with the smaller salary should fund as
much of the couple's FSA needs as possible. The reason is the 6.2% social security tax levy stops at the FICA
wage limit (and doesn't apply at all to money put into an FSA). Thus, for example, if one spouse earns
$110,000 and the other $40,000 and they want to collectively set aside $5,000 in their FSAs, they can save
$310 (6.2% of $5,000) by having the full amount taken from the lower-paid spouse's salary versus having
100% taken from the other one's wages. Of course, either way, the couple will also save approximately $1,500
in income and Medicare taxes because of the FSA.

Last but not least, if you currently have an FSA, make sure you drain it by incurring eligible expenses before the
deadline for this year. Otherwise, you'll lose the remaining balance. It's not that hard to drum some things up:
over-the-counter drugs (e.g., aspirin and antacids), new glasses or contacts, dental work you've been putting
off, or prescriptions that can be filled early.

     Coldwell Banker Glynn Realty, Inc.               Glynn Accounting & Tax Service                       Glynn Financial Services LLC
    _________________________________________________________________________________________________________________________________

                 (262) 644-6915                                           (262) 644-8479                         (262) 644-2053




F:\AC\MASTER\1099\2007 1099 Mailer\Glynn Year end planning.doc
Adjusting Federal Income Tax Withholding. If it looks like you are going to owe income taxes for 2007,
consider bumping up the Federal income taxes (FIT) withheld from your paychecks now through the end of
2007 so that your total tax payments (estimated payments plus withholdings) equal at least 90% of your
estimated 2007 liability or, if smaller, 100% of last year's liability (110% if your 2006 AGI exceeded $150,000).
When you file your return, you will still have to pay the taxes due less the amount paid in, but interest or
penalties will be minimized, if not eliminated.

                                                                 For Your Business

Faster Depreciation for Leasehold and Restaurant Improvements. Favorable 15-year depreciation is
allowed for qualified leasehold and restaurant improvements that are placed in service by 12/31/07. Unless
Congress extends this provision, the cost of these improvements placed in service after 2007 will generally have
to be depreciated over 39 years. If your business is working on these types of improvements, you'll want to pull
the stops out to get them done and placed in service by the end of the year.

Business Charitable Donations. Enhanced deductions are allowed for certain types of charitable donations
made through 2007. There are two enhanced deductions available to C corporations—one for donations of
computer equipment and software and another for qualified book contributions. Non-C corporation businesses
get an enhanced deduction for donations of food inventories. Last, but not least, is a rule that provides
favorable treatment for S corporation donations of certain appreciated assets. These enhanced deductions and
special rules will be unavailable in tax years beginning after 2007 unless Congress extends them. If your
business plans entail such donations, you'll want to complete them before the end of the year.

Employ Your Child (or Grandchild) . If you are self-employed, don't miss one last opportunity to employ
your child (or grandchild) before the end of the year. Doing so has tax benefits in that it shifts income (which is
not subject to the Kiddie tax) from you to your child or grandchild, who normally is in a lower tax bracket or
may avoid tax entirely due to the standard deduction. There can also be payroll tax savings since wages paid by
sole proprietors to their children age 17 and younger are exempt from both social security and unemployment
taxes. Employing your children has the added benefit of providing them with earned income, which enables
them to contribute to an IRA. Children with IRAs, particularly Roth IRAs, have a great start on retirement
savings since the compounded growth of the funds can be significant.

Remember a couple of things when employing your child or grandchild. First, the wages paid must be
reasonable given the child's age and work skills. Second, if the child is in college or entering soon, having too
much earned income can have a detrimental impact on the student's financial aid eligibility.

                                                                    Conclusion

Through careful planning, it's possible your 2007 tax liability can still be significantly reduced. But don't delay.
The longer you wait, the less likely it is that you'll be able to achieve a meaningful reduction. The ideas
discussed in this letter are a good way to get you started with year-end planning, but they're no substitute for
personalized professional assistance. Please don't hesitate to call us with questions or for additional strategies
on reducing your tax bill. We'd be glad to set up a planning meeting or assist you in any other way that we can.

Best regards,




     Coldwell Banker Glynn Realty, Inc.               Glynn Accounting & Tax Service                       Glynn Financial Services LLC
    _________________________________________________________________________________________________________________________________

                 (262) 644-6915                                     (262) 644-8479                               (262) 644-2053




F:\AC\MASTER\1099\2007 1099 Mailer\Glynn Year end planning.doc