THE IRS MAKES MISTAKES ALL THE TIME THE AVERAGE PERSON WOULD HAVE RELIED THAT THE IRS REPORT WAS CORRECT.

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Maximillian Holmes
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1 THE IRS MAKES MISTAKES ALL THE TIME THE AVERAGE PERSON WOULD HAVE RELIED THAT THE IRS REPORT WAS CORRECT. I ALWAYS CHECK THE EXAMINATION REPORTS AND HAVE FOUND ERRORS ARE FREQUENT. IF I HAD NOT CONFRONTED THE TAX EXAMINER, MY CLIENT WOULD HAVE OVERPAID TAXES AND PENALTIES. THIS ONE WAS NOT THAT LARGE, BUT I AM ALWAYS LOOKING OUT FOR MY CLIENT. IN THIS CASE I SAVED MY CLIENT $ THE EXAMINER DID NOT CORRECTLY MAKE AN ADJUSTMENT FOR SELF-EMPLOYMENT TAX AND PENALITES. SEE REPORTS

2 INCORRECT EXAMINATION REPORT Form4549 Income Tax Examination Changes Page 1 of 2 Name and Address of Taxpayer Taxpayer Identification Number Return Fenn No.: Person with whom Name and Title: P. o. Box examination Honolulu HI changes were discusse 1. Adjustments to Income 12/31/2010 a. Sch Cl - Other Expenses (2,500.00) sch Cl - Utilities (1,772.00) Itemized Deductions (85. 00) o. p. 2. Total Adjustments (4,357.00) 3. Taxable Income Per Return or as Previously Adjusted 14, Corrected Taxable Income 10, Tax Method TAX TABLE Filing Status Joint 5. Tax 1, Additional Taxes / Alternative Minimum Tax 7. Corrected Tax Liability 1, Less a. Credits c. 9. Balance (Une 7 less Unes Ba through Bd) 1, Plus a. Self Employment Tax 7, Other Taxes c Total Corrected Tax Liability (Line 9 plus Unes 10a through 10d) 8, Total Tax Shown on Return or as Previously Adjusted 8, Adjustments to: a. 14. Deficiency-lncrea se in Tax or (Overassessment-Decrease in Tax) (Une 11 less Une 12 adjusted by Unes 13a through 13c) ( ) 15. Adjustments to Prepayment Credits - Increase (Decrease) 16. Balance Due or (Overpayment)- (Une 14 adjusted by Une 15) (Excluding interest and penalties) (435.00) The Internal Revenue Service has agreements with state tax agencies under Which infonnation about federal tax, lnduding increases or decreases, is exchanged with the states. If this change affects the amount of your state Income tax, you should amend your state return by filing the necessary forms. You may be subject to backup withholding if you underreport your interest, dividend, or patronage dividend income yqu earned and do not pay the required tax. The IRS may order backup withholding (withholding of a percentage of your dividend and/or interest income) if the tax remains unpaid after it has been assessed and four notices have been issued to you over a 120-day perio Catalog Number 23105A Form 4549 (Rev )

Form4549 Income Tax Examination Changes Page 2 of 2 Name of Taxpaver Taxpayer Identification Number Return Fonn No.: 17. Penalties/ Code Sections 12/31/2010 a. c. 18.

3 Form4549 Income Tax Examination Changes Page 2 of 2 Name of Taxpaver Taxpayer Identification Number Return Fonn No.: 17. Penalties/ Code Sections 12/31/2010 a. c. 18. Total Penalties Underpayment attributable to negligence: ( ) underpayment will accrue until it is paid or assesse Underpayment attributable to fraud: ( ) underpayment will accrue until it is paid or assesse Underpayment attributable to Tax Motivated Transactions (TMT). The interest will acaue and be assessed at 120% of the under payment rate in accordance with IRC 6621 (c) 19. Summary of Taxes, Penalties and Interest: Balance due or (Overpayment) Taxes - (Une 16, Page 1) (435.00) Penalties (Une 18)- computed to 06/02/2016 c. Interest (/RC 6601) - computed to 07/02/ ' TMT Interest - computed to 07/02/2016 (on TMT underpayment) 0.00 Amount due or (refund) - (sum of Unes a, b, c and d) (435.00) a. Other lnfonnation: Interest on Deficiencies - IRC 6601(a) Interest on deficiencies will accrue from the due date of the return until pai REFUND OF Suspended Interest - IRC 6404(g) Suspension of interest pursuant to IRC section 6404(9) does not apply to the increase in tax for tax year Notice of the increase was provided on 07/03/2014. Honolulu, Hawaii _J).ate; 06/ 02/2016 Consent to Assessment and Collection- I do not wish to exercise my appeal rights with the Internal Revenue Service or to contest in the United States Tax Court the findings in this report. Therefore, I give my consent to the immediate assessment and collection of any increase in tax and penalties, and accept any decrease in tax and penalties shown above, plus additional interest as provided by law. It is understood that this report is subject to acceptance by the Area Director, Area Manager, Specialty Tax Program Chief, ordirector of Field Operations. Signature of Taxpayer PLEASE NOTE: If a 1omt retum as f,ted BOTH toxpayers must sign Signature of Taxpayer By: Title: Catalog Number 23105A Form 4549 (Rev )

4 Form 4549 Income Tax Examination Changes Page 1 of 2 Name and Address of Taxpayer Taxpayer Identification Number Return Form No.: Person with whom Name and Title: P. 0. Box examination j changes were discusse 1. Adjustments to Income l2/3l/20l0 a. Sch Cl Other Expenses (2,500.00) Sch Cl Utilities (1,772.00) c. SE AGI Adjustment Itemized Deductions (79.00) 0. p. THE IRS TAX EXAMINER DID NOT MAKE AN ADJUSTMENT FOR SELF- EMPLOYMENT TAX ON ORIGINAL REPORT DATED 6/2/16 2. Total Adjustments (4,049.00) 3. Taxable Income Per Return or as Previously Adjusted 14, Corrected Taxable Income 10, Tax Method TAX TABLE Filing Status Joint 5. Tax 1, Additional Taxes I Alternative Minimum Tax 7. Corrected Tax Liabilitv 1, Less a. Credits 9. Balance (Une 7 less Lines Ba through 8d) 1, Plus a. Self Employment Tax 6, Other Taxes 11. Total Corrected Tax Liability (Line 9 plus Unes 10a through 10d) 7, Total Tax Shown on Return or as Previously Adjusted 8, Adjustments to: a. 14. Deficiency-Increase in Tax or (Overassessment-Decrease in Tax) (Une 11 less Une 12 adjusted by Lines 13a through 1 Jc) (1,004.00) 15. Adjustments to Prepayment Credits Increase (Decrease) CORRECTED REPORT 16. Balance Due or (Overpayment) (Line 14 adjusted by Line 15) (Excluding interest and penalties) (1,004.00) The Internal Revenue Service has agreements with state tax agencies under which information about federal tax, induding increases or decreases, is exchanged with the states. If this change affects the amount of your state income tax, you should amend your state return by filing the necessary forms. ' ADJUSTMENT AFTER CONFRONTING EXAMINER You may be subject to backup withholding if you underreport your interest, dividend, or patronage dividend income yoụ earned and do not pay the required tax. The IRS may order backup withholding (withholding of a percentage of your dividend and/or intarest income) if the tax remains unpaid after it has been assessed and four notices have been issued to you over a 120-day perio Catalog Number 23105A Form 4549 {Rev )

5 Form 4549 Income Tax Examination Changes Page 2 of 2!'4ame of Taxpayer Taxpayer Identification Number Return Form No.: 17. Penalties/ Code Sections 12/ Jl/2010 a. Manually Computed Penalties (200.80) J. ORIGINAL REPORT DID NOT SHOW A REDUCTION OF PENALTIES. I HAD TO BRING IT TO TAX EXAMINERS ATTENTION. 18. Total Penalties (200.80) Underpayment attributable to negligence: ( ) underpayment will accrue until it is paid or assesse Underpayment attributable to fraud: ( ) underpayment will accrue until it is paid or assesse Underpayment attributable to Tax Motivated Transactions (TMT). The interest will accrue and be assessed at 120% of the under payment rate in accordance with IRC 6621(c) 19. Summary of Taxes, Penalties and Interest: a. Balance due or (Overpayment) Taxes - (Une 16, Page 1) (1,004.00) Penalties (Une 18) - computed to 07/07/2016 (200.80) Interest (/RC 6601) - computed to 08/06/ TMT Interest - computed to 08/06/2016 (on TMT underpayment) 0.00 Amount due or (refund) - (sum of Lines a, b, c and d) (1,204.80) Other Information: Interest on Deficiencies - IRC 6601 (a) Interest on deficiencies will accrue from the due date of the return until pai CORRECTED REFUND Suspended Interest - IRC 6404(9) Suspension of interest pursuant to IRC section 6404(9) does not apply to the increase in tax for tax year Notice of the increase was provided on 07/03/ Office: Honolulu, Hawaii 07/07/2016 C nsent to Assessment nd Collection- I do not wish to exercise my appeal rights with the Internal Revenue Service or to contest in the United States Tax Court the findings in this report. Therefore, I give my consent to the immediate assessment and collection of any increase in tax and penalties, and accept any decrease in tax and penalties shown abov plus additional interest a!u)rovided by law. It is understood that this report is subject to acceptance by the Area Director. Area Manager, Specialty Tax Program Chief, ort:>irector of Field Operations. PLEASE NOTE: If a 1omt return t1 as f1ted BOTH ta,pa;ers must s gn Signature oftaxpayer Signature of Taxpayer By: Title: Catalog Number 23105A Form 4549 (Rev )

IRS. If you agree with our changes

IRS. If you agree with our changes IRS Department of the Treasury Date, Internal Revenue Service 04/27/2916 Taxpayer ID number: 1973 NORTH RULON WHITE BLVD 14-2-67 8 M/S 4450 PC 0310 EGC 5531 OGDEN UT 84404 Tax periods ended: December 31,