**IMPORTANT INFORMATION ABOUT TAX REPORTING**

We are committed to help you gather the appropriate tax information that you need to expedite the preparation of the investment related section of your tax return. Below is some information telling you what you can expect. Please understand that this can change without notice. For the latest information or any assistance please feel free to contact us and we will assist you.

We advise that you wait until at least early April before submitting your return for filing as numbers typically get revised.  In the past few years, due to recent tax law changes in 2003, the amount of revisions in tax reporting has increased dramatically.  The brokerage firms such as FOLIOfn or Schwab are not responsible for creating these revisions as they are simply the messenger receiving information from the actual investment companies and trying to comply with tax reporting regulations in a timely and efficient manner.

Schwab Information

Schwab will send you by mail a 1099 on each of your taxable accounts by January 31, 2008.  You may still receive revised 1099 information as late as March.

If you have taken IRA distributions out of an account, you will get a 1099-R on that IRA account.

If Schwab receives subsequent corrections on any investments that they have previously reported to you, a revised 1099 will be sent. This has become typical in the industry as various investments re-characterize certain items.

In February, Schwab will send to you by mail a cost basis report for any taxable account. The cost basis is computed using a high cost basis which is a method that will help minimize your tax liability. This will be a great time saver for completing the schedule D section of your tax return.

FOLIOfn Information

Ifrah Financial will prepare and print the information you will need for your taxable accounts at FOLIOfn, and it will be mailed to you by February 15th. Some of this information is also available on line at any time from FOLIOfn and their 1099's will be available on line by February 15th. FOLIOfn was able to obtain an extension from the IRS to extend the deadline from January 31st. Also, there is a high likelihood that the 1099 information may be revised after that and we will forward these updates as they are received. Updated 1099 information will also be reflected online as it occurs. 

If you have taken IRA distributions from your FOLIOfn account, you will receive a paper 1099-R in the mail from them. This information is now available on line as well.

Ifrah Financial will print the relevant pages from the 1099 Report as well as prepare the Cost basis information in a format that can be attached to your schedule D thereby saving you or your tax preparer quite a bit of time.

You will receive some K-1 information from selected investment at FOLIOfn. These will come directly from the companies themselves.  The deadline for the companies mailing those out is March 17th but they may be available as early as late in February. In some instances the K-1 information will not reflect any information and request that you call them.  Due to a system issue, very few K-1's were not able to generate due to some fractional share issues. Please contact us to let us know and we will promptly resolve the problem and get a K-1 re-issued immediately.

We are working on providing a unique summary report that compiles a total amount of income received from Federal Government Interest sources through Fixed Income Exchange Traded Funds distributions.  This will be helpful for the preparation of the state tax return as this dividend amount is not taxable at the state level and could save you money on your state taxes.  This is a great time saver for your tax preparer and this is the first year that we are able to compile this for you. We provide this report as a courtesy. This type of reporting is rarely produced by brokerage firms.  This report will be sent out later in March because the information needed to generate it has a tendency to also get revised.

Once you have received all the information, you will need to provide it to your tax preparer. If you have given us written authorization to discuss your situation with them, just have your preparer give us a call and we will be happy to assist them.  You can contact us by calling client services at 800-954-3724 or email us at tax@ifrahfinancial.com

We also want to remind you that although a lot of effort goes in to verifying any information we provide to you, we cannot guarantee accuracy. Any reporting we provide is designed to simply assist in the preparation of your tax returns. We are not the source of the information. The custodians who officially maintain these records and communicate the information to the IRS are responsible for providing this accurate reporting.  We do not provide tax or legal advice and strongly encourage you to consult with your tax professionals on any such issues.