IRS Form 3615-A and Explanations for Notice of Deficiency in Gift Tax

Exhibit 8.7.4-6  (11-06-2007)
Form 3615-A and Explanations for Notice of Deficiency in Gift Tax

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NAME OF TAXPAYER: SCHEDULE 2
John L. Jones, Donor CALENDAR YEAR: 1996 and 1997
EXPLANATION OF ADJUSTMENTS
 
VALUE OF GIFTS - STOCK  
It is determined that the common shares of ABC Company, Inc. which you transferred by gift to John Doe is $1,175,000.00 rather than $775,000 as shown on your return for calendar year 1997. Therefore, the total amount of taxable gifts is increased $35,800.00 for calendar year 1997.
TOTAL AMOUNT OF TAXABLE GIFTS FOR PRIOR YEARS (PERIODS)
It is determined that due to changes made to the total amount of taxable gifts for calendar year 1996, the total amount of taxable gifts fro prior years (periods) is $236,350.00 instead of $200,550.00 for calendar year 1997.
TAX ON TOTAL AMOUNT OF TAXABLE GIFTS FOR PRIOR YEARS (PERIODS)
It is determined that due to the increase in the total amount of taxable gifts in calendar year 1966, the tax computed on the total amount of taxable gifts for prior years (periods) is $66,432.00 instead of zero for the calendar year 1997.

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