Free Reply to Response to Motion - District Court of Federal Claims - federal

Case 1:07-cv-00739-ECH

Document 20-3

Filed 09/08/2008

Page 1 of 3

EXHIBIT 1

Form 4549

9-2001) (Rev. Case

Income Tax Examination Changes Filed 09/08/2008 1:07-cv-00739-ECH Document 20-3 i I

Department of

the Treasury -

Internal

Revenue Service

Page

Name and Address

of Taxpayer

J:ntersport Fashions West, Inc.
15' i /2 Mosher Avenue

Taxpayer Identification Numer 95-3425725
Person wi th
whom examination changes were

Return Form No.
1120
I

-1

of

Page 2 of 3

Name and Title

John L. Flynn
Senior Vice-President & eFO

Tustin,

CA

92780-6427

discussed
Year:

i.
2.

Adjustments to Income

a. Per RA - Form 4549-B's
Total Adj ustments
Re turn or as Previously Adjusted

--

9/2001

Year:

9/2002

Year:

9/2003

278,387 278,387
959,551

37,037 37,037

241,350 241,350

3. Taxable Income Per

V

2,989,953 3,026,990

-1,662,442 -1,421,092

4- Corrected Taxable Income
Tax Method Filing Status

1,237,938

5. Tax 6. Alternative Taxes, If Applicable 7. Alternative Minimum Tax ( Starting 2000) 8. Corrected Tax
9.

420,899
0

1,029,177
0

0 0 0

Liability

420,899
0 0 0

1,029,177
0 0 0

a. Foreign Tax Credit b. Other Subpart B Credits c. General Business Credit d. Minimum Tax Credit/Academy Bond
8

Less Credits:

0

0

0 0 0 0 0

10. Balance (Line

less

total of

9a-9d)

420,899
0

1,029,177
0

II. Plus

Other Taxes:
0

a. Miscellaneous Tax/Recapture b. Alternative Minimum Tax (Before 2000) c. Environmental Tax d. Other Taxes
12. Total Corrected Income Tax Liability

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

(Line 10 plus Lines l1a-l1d)

420,899
326,247
0 0 0 0

1,029,177

0 0 0

13. Total Tax Shown on Return or as Previously Adjusted
14 .

a.
b. c. d.

Adjustments to:

v

1,016,584
0 0 0

0
0 0

0

15. Deficiency -

(Overassessment - Decrease in Tax) (Line 12 less Lines 13 & 14a-14d)

Increase

in Tax

94,652
0

12,593
0

0
0

16. Adjustment
17 .

to Prepayment Credit s - incr (deer)

Balance Due or (Overpayment) (Line 15 less Line 16)
Excl uding

interest

and penal ties

94,652

12, 593

0

The Internal Revenue Service has agreements with state tax agencies under which information about federal tax, including increases or decreases, is shared with the states. If this change affects the amount of vour state income tax. vou should .amend vour state return bv filina the necessarv forms. You mav be subiect to backup withholding if you don't report all of the interest, dividend, or patronage dividend income you earned and if you don't pay the required tax. Once the tax has been assessed, you will be issued four notices over a 120-dav Deriod. If YOU don't Day the assessed tax. the IRS may reauire the DayerS to withhold a percentage of your dividend and/or interest payments.
CG Form 4549 (Rev. 9-20011

Cat. No 23105A

ww.irs.aov

RECENED INTERNAL REVENUE semnei
SEP 2 2 2005

LM:HM:1752

Form 4549 I
(Rev. 9-2001)

Income Case 1:07-cv-00739-ECH Tax Examination Changes Document 20-3

Department of the Treasury - Internal Revenue

Filed 09/08/2008 I
.. I

Service

Page 2

Name of Taxpayer Int~rsport Fashions West,

-of
1120

Page 3 of 3

Taxpayer Identification Numer

Return Form No.
Year:

Inc.

I

95-3425725

18.

Penal ties

Code Section

Year:

9/2001
0 0 0 0

Year:

9/2002
0
0 0

9/2003
0 0 0 0 0 0 0 0 0
0

a. b. c. d. e.

0
0

f.

g. h.

0
0 0 0 0 0 0

i. j. k. i.
19.

m.

0 0 0 0 0 0 0 0 0 0 0

0 0

0
0

Total Penal ties

0

Underpayment attributable to negligence: (1981-1987 ) A tax addition of 50 percent of the interest due on underpayment will accrue until paid or assessed. Underpayment attributable to fraud: (1981-1987 ) A addi tion of 50 percent of the interest due on underpayment will accrue until paid or assessed.

0

0

0

tax
0 0 0

Underpayment attributable to Tax Motivated Transactions. (TMT) . The interest will accrue and be assessed at 120% of underpayment rate in accordance

wi th IRC Sec. 6621(c)
20. Summary of Taxes Penal ties and Interest:

0

0

0

a.

Balance Due/ (Overpayment) (Line 17) b. Penal ties (Line 19) computed to c. Interest (IRC 6601) computed to d. TMT Interest computed to on TMT Underpayment e. Amount due ( refund) - (sum of Lines a-d)

94,652
0 0

12,593
0 0 0

0

94, 652

12,593

0 0 0 0 0

Other Information:

EX~e~
Name: Gerrie Leeds

33-05334 Employee ID

Santa Ana

Office

Date

ç./.;CJ/05

Consent to Assessment and Collection - I do not wish to exercise my appeal rights wi th 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 anv increase in tax and penalties shown above. olus additonal interest as provided by law. I accept any decrease in tax and penalties shown above. I understand that this report is subject to acceptance by the appropriate IRS official.

PLEASE NOTE: If a ioint return was filed. BOTH taxpavers must sian.

Signature of Taxpayer

Date

By

Title 17

Date

Vi c.t? - nz tJ i OCVr