unclaimed property: what it is and why you should care

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Unclaimed Property: What It Is and Why You Should Care Panel: David C. Blum, Partner, Levenfeld Pearlstein, LLC Jacqueline Amatulli, Associate, Levenfeld Pearlstein, LLC Jennifer E. Wood, CPA, Partner, Director of International Tax Services, Sikich LLP Moderator: Mary O'Connor , ASA, Partner, Valuation and Dispute Advisory Services, Sikich LLP April 26, 2012 1 Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved Introduction One of the hottest topics among state and local taxation is not a tax at all. Unclaimed Property is a major source of revenue for many states. What constitutes Unclaimed Property varies by state, is uncertain and continues to evolve. 2 Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012

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Panel of experts from Sikich and Levenfeld Pearlstein, LLC presented this introduction to unclaimed property highlighting: Uniform Model Acts and State law regulating unclaimed property; Types of unclaimed property and dormancy periods; Requirements for reporting unclaimed property; How to identify hidden unclaimed property in your organization; and, How to prepare for, and help prevent, an audit.

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Page 1: Unclaimed Property: What It Is and Why You Should Care

Unclaimed Property: What It Is and Why You Should CarePanel:

David C. Blum, Partner, Levenfeld Pearlstein, LLC

Jacqueline Amatulli, Associate, Levenfeld Pearlstein, LLC

Jennifer E. Wood, CPA, Partner, Director of International Tax Services, Sikich LLP

Moderator:

Mary O'Connor , ASA, Partner, Valuation and Dispute Advisory Services, Sikich LLP

April 26, 2012

1Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Introduction

• One of the hottest topics among state and local taxation is not a tax at all.

• Unclaimed Property is a major source of revenue for many states.

• What constitutes Unclaimed Property varies by state, is uncertain and continues to evolve.

2Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012

Page 2: Unclaimed Property: What It Is and Why You Should Care

Overview of Unclaimed Property

• Unclaimed Property very broadly covers most types of tangible and intangible property including dormant accounts held in financial institutions, and money owed by a business, government, or not-for-profit to its customers, owners, employees, vendors, etc.

• Generally falls under property law and is not considered a tax.• As a result,

- No nexus requirements- Limited statute of limitations- Uncertain appeal procedure

• Think of state unclaimed property laws as a type of consumer protection law which is designed to benefit owners of tangible and intangible property.

April 26, 2012 3Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

History & Evolution of Unclaimed Property

• Unclaimed property and the term “escheat” originated in feudal England and related solely to land.- In feudal England, “escheat” meant that when an individual died

without an heir, land was returned to the tenant’s lord, or in

absence of such a lord, to the Crown.

• “Bona Vacantia” allowed the Crown to claim certain personal property against all but rightful owner.

4April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 3: Unclaimed Property: What It Is and Why You Should Care

History & Evolution of Unclaimed Property (cont’d)

• In the U.S., modern custodial state statutes have been in existence since the 1940s.

• Concept was further advanced in 1951 in Standard Oil Co. v. New Jersey, which solidified state’s rights to take possession of Unclaimed Property (in this case, stock and dividends that were abandoned for 14 years).

• The Court established a base premise of modern Unclaimed Property law:- Unclaimed Property is better held by the states and used for the

general good (i.e., public benefit) than held by an individual or entity for a singular enrichment.

5Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012

History & Evolution of Unclaimed Property (Today)

• Implicit adoption of bona vacantia doctrine.

• States “step into the shoes” of the true owner and claim the same rights, second only to the missing true owner.

• Thus, states take custody, but not ownership, of unclaimed property.

• However, states are generally free to use this money until it is claimed by the owner.

• As a result, states are increasing audit efforts and aggressively collecting unclaimed property.

6Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012

Page 4: Unclaimed Property: What It Is and Why You Should Care

Audits of Unclaimed Property

• States are dramatically increasing their audits of compliance with unclaimed property laws, oftentimes with third party “contract” auditors who may audit on behalf of 20 or 30 states simultaneously.

• There has been widespread non-compliance with unclaimed property statutes.

• States are finding unclaimed property audits to be an easy source of revenue – and one that doesn’t require imposition of new taxes or even new legislation.

• Vast majority of money collected through assessments is never returned to property owners.

• One of the biggest problems with Unclaimed Property Audits is a state (or contract auditor’s) ability to “estimate” for prior periods (especially when there is no statute of limitations).

7Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012

• According to NAUPA, state treasurers and other agencies are safeguarding nearly $32.9 billion in unclaimed property.

• Almost $1.8 billion was returned to rightful owners in 2006, leaving the majority in the hands of the states.

8April 26, 2012

What is At Stake?

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 5: Unclaimed Property: What It Is and Why You Should Care

9April 26, 2012

Example: Delaware

• Delaware is particularly active in pursuing unclaimed property audits.

- Unclaimed property collections rose from $106 million in 1998 to $493 million in 2010

- Third largest source of revenue for the state

- Accounts for 15% of revenue

• More than state lottery, corporate income taxes, cigarette taxes, alcoholic beverage taxes and inheritance taxes combined.

• It is not uncommon for Delaware to audit back to 1981.

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Who is Liable for Unclaimed Property?

• Almost everyone has an obligation to account for and report unclaimed property, including:

- Corporations

- Partnerships

- Limited Liability Companies

- Business Trusts

- Not-for-Profit Organizations

- Local Governments and Instrumentalities

10April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 6: Unclaimed Property: What It Is and Why You Should Care

What is Unclaimed Property Today?

• Unclaimed property refers to the transferring of abandoned property to the state custodian for owners that cannot be located after a certain period of time.

• All 50 states and the District of Columbia have enacted unclaimed property statutes; many have adopted or modified one of four different Model Acts (discuss later).

• Common forms of Unclaimed Property:

11April 26, 2012

- Accounts Payable- Uncashed Payroll Checks- Uncashed checks to vendors- Gift certificates and gift cards- Insurance payments or refunds

and life insurance policies- Customer Overpayments- Customer Refunds- Benefits (non-ERISA)- Almost any other credit account

carried on books

- Dormant Savings or checkingaccounts

- Unclaimed stocks and certificatesof deposit

- Uncashed dividends- Deposits of all types- Unredeemed travelers checks and

money orders- Trust distributions- Contents of Safe Deposit Boxes

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Key Unclaimed Property Terms

- Unclaimed or Abandoned Property • Property which has reached dormancy and is subject to escheat laws

- Escheatable• The point when the burden of being the custodian of unclaimed property shifts to

the state - Owner

• The person or entity that owns the rights to the property- Holder

• The entity that holds property owed to another- Custodian

• The entity or governmental unit that maintains the property for safe keeping- Dormancy

• The period of time that a company has to hold on to a liability before it is considered escheatable

- Common Exceptions• Business to Business• De minimis

12April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 7: Unclaimed Property: What It Is and Why You Should Care

What are the Elements of Unclaimed Property?

• “Fixed and Certain”• There must be a fixed and certain legal obligation of the holder to the owner – Unclaimed

property is not the physical instrument by which the obligation is evidenced, but rather, the right of the owner against the holder. The obligation of the holder must be absolute and for a specific amount.

• Example: In many states unclaimed property does not include credit card points programs and other uncertain value programs.

• Dormancy must run• The property must remain unclaimed by the owner for the dormancy period - The dormancy

period represents a period of inactivity. If the owner demonstrates an interest in the property then the dormancy period may start over again. The dormancy period generally begins at the time the property first becomes payable or distributable and continues until the state-imposed limit in years is reached.

• Example: Gift card last activity date.

• Owner cannot be located• The apparent owner of the property cannot be located – State laws require the holder to

perform due diligence by attempting to locate the true owner and requires the owner to respond to the letter to toll the dormancy period

• Example: If the owner receives a due diligence letter but does not respond to the letter within the dormancy period, the property in question becomes escheatable to the state.

13April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Uniform Acts

• All 50 states and the District of Columbia have enacted unclaimed property statutes; many have adopted or modified one of four different Model Acts:

- Uniform Disposition of Unclaimed Property Act (1954) – Resolved the multiple liabilities issue through enactment of reciprocity provisions, which had come as a result of more than one state imposing its jurisdiction over the same property.

- Revised Uniform Disposition of Unclaimed Property Act (1966) –Addressed problems involving money orders and travelers checks.

- Uniform Unclaimed Property Act (1981) – Replaced the earlier acts, codified priority standards set out in Texas v. New Jersey, 379 U.S. 674 (1965).

- Uniform Unclaimed Property Act (1995) – Superceded the 1981 Act. Reaffirmed Texas v. New Jersey. Clarified the debtor’s identity when payments made by intermediaries.

14April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 8: Unclaimed Property: What It Is and Why You Should Care

Presumption of Abandonment

• Under the Uniform laws, vary for different types of property.

• Generally shortened with each succeeding Act.

• 1954, 1966 (7 years)

• 1981 (5 years)

• 1995 (3 years for most property) - Travelers checks 15 years

- Money orders 7 years

- Stock or equity interest in business/ debt of a business 5 years

- Property distributed in dissolution of business 1 year

• Rules still vary under state laws.

15April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

What State Gets the Unclaimed Property? The “Priority Rules”

• The U.S. Supreme Court has set forth the following “Priority Rules” (Texas v. New Jersey) to determine which state holds the unclaimed property:- First: The State of the owner’s last known address.

- Second: If there is no known address or if the state of last known address does not provide for escheat of that property, then the state in which the entity is domiciled (i.e., incorporated).

• Note, because this is based on the state of owner’s last known address, you could have unclaimed property obligations to numerous states (even though you do not have nexus in any of those states).

16April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 9: Unclaimed Property: What It Is and Why You Should Care

Throwback Rule

• Many states have a third, “transaction-based” rule.

• Not adopted by the Supreme Court in Texas v. New Jersey- If both the state of owner’s last known address and the state of holder’s

domicile decline or fail to cover an item of property in their unclaimed property acts, then the state where the transactions giving rise to such property occurred has the right to claim the property.

- Premises jurisdiction by a state if the transaction out of which the property arose occurred in this state, the holder is domiciled in a state that does not provide for escheat or custodial taking and the last known address of the apparent owner or other person entitled to the property is unknown or in a state that does not provide for escheat.

17April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Business to Business Exemption

• Some states have a B2B Exemption from reporting unclaimed property for business transactions under the theory that unclaimed property laws are designed to protect consumers, not transactions between businesses.

• This exemption (if available) varies from state to state but generally exempts outstanding checks, refunds, deposits payments and credit balances resulting from transactions between business.

18April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 10: Unclaimed Property: What It Is and Why You Should Care

Trends

• Shortening the dormancy period for reporting Unclaimed Property.

• Targeting new types of property.

• (e.g., securities, store value cards, promotional incentives)

• Creating new jurisdictional rules to claim property.

• (e.g., “place of purchase” presumption and third-priority rule)

• Retroactively escheating Unclaimed Property.

• Increase in state audits and compliance opportunities (e.g., Amnesty and Voluntary Disclosure).

• States’ increased willingness to litigate contested assessments.

19April 26, 2012Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Reporting & Filing Obligations

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 20

Page 11: Unclaimed Property: What It Is and Why You Should Care

Compliance Requirements

• Relevant data

• Types of property

• Abandonment periods

• Quantifying the potential liability

• Mailing requirements

• Recordkeeping, retention and reporting

• Reciprocal reporting

• Becoming compliant

• Audit triggers

• Voluntary compliance

• IT considerations

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 21

Gathering Relevant Data

• Look at your corporate structure

• History of mergers or acquisitions

• Review general ledger and chart of accounts

• Bank reconciliations and outstanding checklist

• Journal entries

• Accounts receivable reports

• De minimis or automatic system write-offs

• Review contracts with applicable third party service providers

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 22

Page 12: Unclaimed Property: What It Is and Why You Should Care

What is Unclaimed Property Today?

• Common forms of Unclaimed Property:

23April 26, 2012

- Accounts payable- Uncashed payroll checks- Uncashed checks to vendors- Gift certificates and gift cards- Insurance payments or refunds

and life insurance policies- Customer overpayments- Customer refunds- Benefits (non-ERISA)- Almost any other credit account

carried on books

- Dormant savings or checkingaccounts

- Unclaimed stocks and certificatesof deposit

- Uncashed dividends- Deposits of all types- Unredeemed travelers checks and

money orders- Trust distributions- Contents of safe deposit boxes

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Abandonment Period (in years) for Illinois and Reciprocal States

Page 13: Unclaimed Property: What It Is and Why You Should Care

Quantifying the Potential Liability

• Identify periods where detailed records are available

• Review records and schedule items that are potential unclaimed property

• For example:- Stale dated outstanding checks

- Voided checks that were not reissued – state will ask why did you void?

- Stale dated credit balances

• Research items to determine if they represent a fixed and certain obligation

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 25

Due Diligence

• Due diligence is the process of a holder attempting to contact the true owner of dormant property to give them a last opportunity to claim the property from the holder before it is turned over to a State Unclaimed Property Administration.

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 26

Page 14: Unclaimed Property: What It Is and Why You Should Care

Why Perform Due Diligence

• Due diligence is mandated by state law

• Good customer relations- Reestablishes communication with the customer

- Increases goodwill

• Smart business practice - Fraud prevention tool

- Prevents material misstatement on financial statements

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 27

Performing State Mandated Due Diligence

• Generally, in most states, requirement applies to property having a value of $50 or more- Adhere to additional state requirements

- Newspaper publication: New York

- Written notice to owner by certified mail: New Jersey, New York, Ohio

- Specific letter content and/or format: California, Florida, Idaho, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Missouri, Nevada, New Hampshire, New Jersey, North Carolina, Ohio, South Dakota, Tennessee, West Virginia

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 28

Page 15: Unclaimed Property: What It Is and Why You Should Care

Performing State Mandated Due Diligence –Where to Begin

• 43 fall states – all property types due Oct 31/Nov 1 with June 30 cut-off date

• What is it?- State mandated letter, specific time period, address

- No less than 60 days, no more than 120 days

- Font/specific wording requirements

• Timeline - Might want to choose early July date to get mailings out the door

to the owners of the assets

• California – 365 days to 180 days, Texas – by August 31st, Iowa – July 1st to end of September, Hawaii – begin May 1st

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 29

Failure to Complete Due Diligence

• Non-completion of due diligence does not relieve the holder from reporting unclaimed funds

• Early reporting does not relieve the holder of performing due diligence

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 30

Page 16: Unclaimed Property: What It Is and Why You Should Care

Mailing Requirements

• Send to valid owner addresses

• Most states accept first class mailing as proof- Do’s

• List the owner’s name

• List your company’s name

• List the company’s contact person

• List the company’s contact information

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 31

Mailing Requirements

• Letter Content – Don’ts- List the state’s contact information

- Refer the owner to the states

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 32

Page 17: Unclaimed Property: What It Is and Why You Should Care

Mailing Requirements

• Letter Content - Do’s- Use the specific verbiage that may be required by the reporting

state

- State the timeframe the owner has to respond in order to receive their money or cash the check if possible before turning the property over to the state

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 33

Sample Letter

Missing Owner Name

Missing Owner Last-Known Address

City in Texas, Texas 77000

Our records show that we, XYZ Company, are holding unclaimed property that may belong to you. We also have not had

direct contact with you since mm/dd/yyyy. The check or identifying number for the $ 0,000.00 we are holding is Nbr. 123456 and the item is dated mm/dd/yyyy.

Under Texas state law, we may be required to deliver this property to the Texas Comptroller of Public Accounts, on or

before Nov. 1 if the property is not claimed. Please complete the information below and return this letter to XYZ Company no later than mm/dd/yyyy, so that we may meet our unclaimed property reporting obligations. Do not forget to sign and date your response.

_____ I am entitled to the above referenced property. Please issue a new check and mail to the following address: ______________________________________________________

_____ I am not entitled to the above referenced funds or these funds have already been paid to me.

_____ I am aware of these funds and choose not to claim them at the present time.

_____ Please change the address on my account to: ______________________________________________________

Owner signature Date signed

Your response is appreciated. Please contact us at (999) 999-9999 if you have any questions.

Sincerely,

XYZ Company

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 34

Page 18: Unclaimed Property: What It Is and Why You Should Care

Reciprocal Reporting

• Where domiciled vs. incorporated- Not accepted by all states

- Delay in remitting property to right state

- Conflict within dormancy periods

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 35

Recordkeeping & Retention

• In general, holder must maintain records relating to property in report for 10 years after the holder files the report, unless a shorter period is provided by rule of the administrator

• Consequences of failure:- Potential liability for holder: Barron v. Fidelity Magellan Fund

- Potential liability for state: Taylor v. Westly

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 36

Page 19: Unclaimed Property: What It Is and Why You Should Care

Unclaimed Property Audits

• New focus – securities/insurance

• Contract auditors

• What, if any, standard guidelines are used

• What oversight does the state exercise over contract auditors?

• Authority to estimate – when and how?

• How and when are interest and penalties applied?

• What options/recourse is available for a holder?

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 37

Audit Triggers

• State registration and payment of other taxes with no compliance history

• Filing only negative unclaimed property reports

• Failing to file all property types

• Claiming property without being compliant

• Merger and acquisition history

• Transient workforce

• State of incorporation

• Media event/publicity

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 38

Page 20: Unclaimed Property: What It Is and Why You Should Care

To Reduce the Possibility of Being Selected for a Compliance Examination a Holder Should:

• File your report annually. Even if you have no property to report, file a "negative" report as required by the Administrative Rules.

• Make sure your report and remittance balance. Use the Treasurer's forms and formats when possible.

• Make sure that your report gives complete owner information/detail.

• Report all types of property that you may have. Reporting of certain types of property and non-reporting of other types triggers a closer look at your reporting history.

• Make sure to perform your due diligence as required by the Act. Contact owners at their last known address and have them reactivate accounts, cash dividend checks, etc. If contact cannot be established, remit the property.

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 39

Voluntary Compliance

• Accurate financials

• Improved character of penalty and interest abatement

• Limited “look-back” period

• Reduced assessments

• Risk of audit

• Avoid laborious auditor requests

• Set own timetable for compliance

• Avoid whistleblowers

• Avoid litigation

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 40

Page 21: Unclaimed Property: What It Is and Why You Should Care

Typical System Related Issues

• Transaction data is not property codified:- Last customer initiated activity

- Property type

- At risk dormancy date

- Date remitted to state

- State of remittance

- Report ID

• Lack of seamless integration between LOB systems and reporting systems

• Lack of closed loop process

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 41

Typical System Related Issues

• Catalog of property types

• Workflow diagram of identification of transactions

• Should have an IT unclaimed property expert by property types

• Need to understand what data is available to you and how to apply

• Need to document data extract rules

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 42

Page 22: Unclaimed Property: What It Is and Why You Should Care

Best Practices and Next Steps

• Determine your company’s compliance status

• Identify areas of potential exposure

• Consider voluntary compliance programs in jurisdictions where exposure exists

• Implement policies, procedures and mechanisms through which to report

• Test your current procedures

• Don’t claim property if you have not been compliant

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved April 26, 2012 43

44April 26, 202

Resources

• National Association of Unclaimed Property Administrators (NAUPA) (www.unclaimed.org)

• National Association of State Treasurers (NAST) (www.nast.net)

• Unclaimed Property Professionals Organization (UPPO) (www.uppo.org)

• Institute for Professionals in Taxation (IPT) (www.ipt.org)

• Council on State Taxation (COST) (www.statetax.org)

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

Page 23: Unclaimed Property: What It Is and Why You Should Care

45April 26, 2012

Questions?

Jacqueline AmatulliLevenfeld Pearlstein, LLC2 N. LaSalle St., Suite 1300Chicago, Illinois [email protected]

David C. BlumLevenfeld Pearlstein, LLC2 N. LaSalle St., Suite 1300Chicago, Illinois [email protected]

Jennifer Wood, CPASikich LLP6815 Weaver RoadSuite 100Rockford, Illinois [email protected]

Mary O’Connor, ASASikich LLP123 North Wacker DriveSuite 1500Chicago, Illinois [email protected]

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved

46April 26, 2012

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or opinion provided by Sikich LLP or Levenfeld Pearlstein. This material may not be applicable to, or suitable for, specific circumstances or needs, and may require consideration of non-tax factors and tax factors not described herein. Contact Sikich LLP, Levenfeld Pearlstein or another tax professional prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Sikich LLP and Levenfeld Pearlstein assume no obligation to inform the reader of any such changes.

Pursuant to requirements relating to practice before the Internal Revenue Service, any tax advice in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties imposed under the United States Internal Revenue Code, or (ii) promoting, marketing or recommending to another person any tax related matter.

Disclaimer

Copyright 2012, Levenfeld Pearlstein, LLC and Sikich LLP, All rights reserved