TEGE Broch  9/27/04  11:41 AM  Page 1

                                                                                                                                                                                                                                                                                      number is (877)829-5500.                                                     on TE/GE tax-related topics.The CAS toll-free phone                                                          answered over 438,000 telephone calls and 25,500 letters                       tions,                                can help customers with returns, tion and assistance to TE/GE customers.                      Customer Account Services (CAS) CUSTOMER ACCOUNT SERVICES (CAS)           www.irs.gov/bonds www.irs.gov/tribes                     www.irs.gov/govts                 www.irs.gov/ge                              value from $650 billion to $1.8 trillion.                 1985 and 2002.This paralleled a growth in tax-exempt bond               450,000 notifications of tax-exempt bond issuances,                                                                         regarding tribal sovereignty.                   tion and tax reporting for Indian tribes and raise new issues mercial enterprises.These activities often complicate informa-                          has enabled tribes to expand into other industries and com- market in the United States economy.This source of funds                 industry has made it the largest revenue producing gaming                                                      and local levels.The rapid growth of the Indian-owned
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  In the tax-exempt bond area,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               and verification of tax-exempt status.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     determination applica-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       the IRS received more than
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              provides tax informa-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      In addition,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               In FY 2003,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CAS                                                                                                                                                                                                                                                                                                                                                                                                             between
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               CAS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          gaming

Catalog Number 29780 Publication3608(Rev.10-04)            Internal Revenue Service Department of the Treasury                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Director, Janina Skufca                        Director,                             Preston Butcher                        Director,                                                      Martha Sullivan                                                           Director,                                                         Carol D. Gold                                       Deputy Commissioner                               Sarah Hall Ingram                                                               Commissioner                                                           Steven T. Miller                                                                                                                      TE/GE LEADERSHIP
                                                www.irs.gov
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   CAS                                            Government Entities                                                          Exempt Organizations                                                                                                                     Employee Plans

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (513)                                                                      (202)                                                       (202)                                                                                                                                                                                 (202)                                                                                                 (202)                                                                                                                                          (202)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             263-3733                                                                   283-2900                                                    283-2300                                                                                                                                                                              283-2100                                                                                              283-2700                                                                                                                                       283-2500

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     TE/GE MISSION STATEMENT
                                                                                                               the tax law with integrity                      and to protect the public with applicable tax laws understand and comply service by helping them                                                                                                                                                        and Government Entities
                                                                                                                                                                                                                                                                customers top quality                                                                                                                                                                                                                                                    To provide Tax Exempt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          TAX EXEMPT
                                                                                                                                          interest by applying 
                                                                                    and fairness to all.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ENTITIES
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              GOVERNMENT

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 ENTITIES (TE/GE) TAX EXEMPT AND GOVERNMENT                         INTERNAL REVENUE SERVICE

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 TEGE Broch  9/27/04  11:41 AM  Page 4

                                                                                                  billion in employment tax and income tax withholding.                                                                                                      controlling about $8 trillion in assets and paying over $300                                                                                                   of tax administration,                                                                                                                   income tax,                                                                                                                                                          pension funds.While these entities are not subject to federal                                                                         community organizations to sovereign Indian tribes to large                                                                                                 oversee a diverse range of customers,                                                                                                                            Exempt Organizations (EO)                                                               TE/GE’s three major business units —                                                                                                                                                  TE/GE CUSTOMER BASE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       TAX
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  its mission statement:                                                                                     to meeting the needs of its customers is expressed in                                                     and compliance activities.TE/GE’s strong commitment                                                                                                                  base,                                                                                                    end service and accountability to its unique customer                                                                      in complying with the tax laws.TE/GE provides end-to-                                                                                         plans,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           tax law with integrity and fairness to all.                                                                    and to protect the public interest by applying the                                                                                           understand and comply with applicable tax laws                                                            customers top quality service by helping them                                                                    To  provide tax exempt and government entity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            division addresses the special needs of pension                                               he Tax Exempt and Government Entities (TE/GE) 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            including education and outreach,                                                                                                                                                                                                                                                                                                                                                 exempt organizations,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     they nonetheless represent a significant aspect                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   EXEMPT

                                                                                                                                                                                                                                                                                                                                                                                                                            with approximately three million entities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       , and 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Government Entities (GE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              and government entities 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            from small volunteer                                                                                                                                                                                                                                      Employee Plans (EP)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       GOVERNMENT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            customer service,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       —                                                                                             ,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ENTITIES

organizations cease operations.Thus,                                                                                                                    organizations are not required to file,                                                                                                                           $25,000 do not file an annual return,                                                                                                      over $2 trillion.                                                                                                                               base consists of nearly 1.6 million organizations with assets                                                                                                                      complex requirements for tax-exempt status.This customer                                                                            organizations                                                                                                                         itable,                                                                                                                                                   Exempt Organizations (EO)                                                                                                                                     EXEMPT ORGANIZATIONS (EO)                                                                                                                                                    www.irs.gov/ep                                                                                                an unexpected tax event due to some error in the plan.                                                          in a plan who needs the assurance that there will not be                                                               its greatest impact is on the average citizen — a participant                            world by accountants,                                                     complex nature and is generally conducted in the financial ance with new laws and regulations.This work is of a highly                          plan,                                                                                                  compliance with the tax law and regulations for each group                                                                                                                  of more than $4 trillion.                                              data,                                                                                    is meeting all requirements.                                       but many request a determination from                                                                                                   deferred compensation plans are not required to file returns,                                                            403(b) tax-sheltered annuities,                                                         plans.                                                                                                                       401(k),                                                                                                                    must file annual returns for group pension,                                                                     benefit plans.                                                                                                      Employee Plans (EP)                                                                                                                                                                                       EMPLOYEE PLANS (EP)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 EP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               but must also review plans to ensure continuing compli-                                                                                                           provides not only an initial determination to establish                                                                                                                                 approximately one million private plans controlled assets                                                                                                                                                                                                                                                                                                                                                                                                                                                            Simplified Employee Pensions (SEPs),
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  social, educational, political, and other not-for-profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 employee stock ownership (ESOP),

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            meet and maintain compliance with the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Currently,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Organizations with income of less than

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     attorneys,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       there are nearly one million plans that                                       serves the market of qualified pension
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Based on the most recent return
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ensures that religious,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        and IRC 457 government
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     and actuaries.
the exact number of                                                                                                                                     and every year many                                                                                                                                               churches and other
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           EP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     to ensure the plan                                                                                                                                                                                                                                                                                                                                       SIMPLE plans,                                                                                                                and stock bonus                                                                                                            profit-sharing,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     However,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       char-

                                     require coordination with other federal agencies at national                                                                                               tribal governments and activities are complex and frequently                                                                                                    subdivisions and business activities.Tax issues relating to                                                                                tribes that account for over 2,500 entities of government                                                                                                                                                                                                                                                                                             $3.7 trillion.                                                                                                   of nearly $3 trillion and have an economic impact of over                                                                                                ees in the United States.) They also buy goods and services                                                         in excess of $200 billion.                                                         about $760 billion annually and paying employment taxes                           customers employ 20% of the American workforce earning                                               and paying employment taxes.The almost 88,000                                                        governments are responsible for income tax withholding                                                                                                     (TEB)                                                                                                (FSLG)                                                                                      types of customers:                                                         Government Entities (GE)                                                                                                                        GOVERNMENT ENTITIES (GE)                                                                                                        www.irs.gov/eo                                                                                                     zations are a major source of telephone inquiries to CAS                           (CAS) to provide them with tax law guidance.                                                           rely on the assistance of                                     professional accounting staff,                                                                                                    have a staff of fewer than ten employees.                                                               exempt organizations are started and run by volunteers and                                 by an average of 5% annually.                                                               61,000 applications were received,                                                                                       mination of their tax-exempt status.                                                                                                                                                                                                               tions filed an annual return.                                                                                               However,                                                                                    qualified organizations cannot be determined from IRS filings.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   GE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             In FY 2003,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            . Although not subject to federal income tax,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   customers also include 564 federally recognized Indian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ;Indian Tribal Governments (ITG)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          for 2002,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  over 90,000 organizations requested a deter-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Federal,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        more than 800,000 tax-exempt organiza-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (This is the largest block of employ-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               TE/GE Customer Account Services
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          State and Local Governments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           encompasses three distinct                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            many tax-exempt organizations                                                                                                                                                                                                                                                                                                        Unlike employee plans,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  this number has increased 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ;and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Since 1993,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Tax Exempt Bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Because they lack a
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Exempt organi-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 when about
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       FSLG                                                                                                                                                                 these 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      most
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         .

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 TEGE Broch  9/27/04  11:41 AM  Page 4

                                                                                                  billion in employment tax and income tax withholding.                                                                                                      controlling about $8 trillion in assets and paying over $300                                                                                                   of tax administration,                                                                                                                   income tax,                                                                                                                                                          pension funds.While these entities are not subject to federal                                                                         community organizations to sovereign Indian tribes to large                                                                                                 oversee a diverse range of customers,                                                                                                                            Exempt Organizations (EO)                                                               TE/GE’s three major business units —                                                                                                                                                  TE/GE CUSTOMER BASE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       TAX
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  its mission statement:                                                                                     to meeting the needs of its customers is expressed in                                                     and compliance activities.TE/GE’s strong commitment                                                                                                                  base,                                                                                                    end service and accountability to its unique customer                                                                      in complying with the tax laws.TE/GE provides end-to-                                                                                         plans,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           tax law with integrity and fairness to all.                                                                    and to protect the public interest by applying the                                                                                           understand and comply with applicable tax laws                                                            customers top quality service by helping them                                                                    To  provide tax exempt and government entity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            division addresses the special needs of pension                                               he Tax Exempt and Government Entities (TE/GE) 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            including education and outreach,                                                                                                                                                                                                                                                                                                                                                 exempt organizations,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     they nonetheless represent a significant aspect                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   EXEMPT

                                                                                                                                                                                                                                                                                                                                                                                                                            with approximately three million entities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       , and 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Government Entities (GE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              and government entities 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            from small volunteer                                                                                                                                                                                                                                      Employee Plans (EP)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       GOVERNMENT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            customer service,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       —                                                                                             ,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ENTITIES

organizations cease operations.Thus,                                                                                                                    organizations are not required to file,                                                                                                                           $25,000 do not file an annual return,                                                                                                      over $2 trillion.                                                                                                                               base consists of nearly 1.6 million organizations with assets                                                                                                                      complex requirements for tax-exempt status.This customer                                                                            organizations                                                                                                                         itable,                                                                                                                                                   Exempt Organizations (EO)                                                                                                                                     EXEMPT ORGANIZATIONS (EO)                                                                                                                                                    www.irs.gov/ep                                                                                                an unexpected tax event due to some error in the plan.                                                          in a plan who needs the assurance that there will not be                                                               its greatest impact is on the average citizen — a participant                            world by accountants,                                                     complex nature and is generally conducted in the financial ance with new laws and regulations.This work is of a highly                          plan,                                                                                                  compliance with the tax law and regulations for each group                                                                                                                  of more than $4 trillion.                                              data,                                                                                    is meeting all requirements.                                       but many request a determination from                                                                                                   deferred compensation plans are not required to file returns,                                                            403(b) tax-sheltered annuities,                                                         plans.                                                                                                                       401(k),                                                                                                                    must file annual returns for group pension,                                                                     benefit plans.                                                                                                      Employee Plans (EP)                                                                                                                                                                                       EMPLOYEE PLANS (EP)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 EP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               but must also review plans to ensure continuing compli-                                                                                                           provides not only an initial determination to establish                                                                                                                                 approximately one million private plans controlled assets                                                                                                                                                                                                                                                                                                                                                                                                                                                            Simplified Employee Pensions (SEPs),
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  social, educational, political, and other not-for-profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 employee stock ownership (ESOP),

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            meet and maintain compliance with the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Currently,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Organizations with income of less than

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     attorneys,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       there are nearly one million plans that                                       serves the market of qualified pension
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Based on the most recent return
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ensures that religious,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        and IRC 457 government
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     and actuaries.
the exact number of                                                                                                                                     and every year many                                                                                                                                               churches and other
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           EP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     to ensure the plan                                                                                                                                                                                                                                                                                                                                       SIMPLE plans,                                                                                                                and stock bonus                                                                                                            profit-sharing,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     However,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       char-

                                     require coordination with other federal agencies at national                                                                                               tribal governments and activities are complex and frequently                                                                                                    subdivisions and business activities.Tax issues relating to                                                                                tribes that account for over 2,500 entities of government                                                                                                                                                                                                                                                                                             $3.7 trillion.                                                                                                   of nearly $3 trillion and have an economic impact of over                                                                                                ees in the United States.) They also buy goods and services                                                         in excess of $200 billion.                                                         about $760 billion annually and paying employment taxes                           customers employ 20% of the American workforce earning                                               and paying employment taxes.The almost 88,000                                                        governments are responsible for income tax withholding                                                                                                     (TEB)                                                                                                (FSLG)                                                                                      types of customers:                                                         Government Entities (GE)                                                                                                                        GOVERNMENT ENTITIES (GE)                                                                                                        www.irs.gov/eo                                                                                                     zations are a major source of telephone inquiries to CAS                           (CAS) to provide them with tax law guidance.                                                           rely on the assistance of                                     professional accounting staff,                                                                                                    have a staff of fewer than ten employees.                                                               exempt organizations are started and run by volunteers and                                 by an average of 5% annually.                                                               61,000 applications were received,                                                                                       mination of their tax-exempt status.                                                                                                                                                                                                               tions filed an annual return.                                                                                               However,                                                                                    qualified organizations cannot be determined from IRS filings.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   GE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             In FY 2003,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            . Although not subject to federal income tax,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   customers also include 564 federally recognized Indian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ;Indian Tribal Governments (ITG)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          for 2002,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  over 90,000 organizations requested a deter-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Federal,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        more than 800,000 tax-exempt organiza-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (This is the largest block of employ-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               TE/GE Customer Account Services
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          State and Local Governments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           encompasses three distinct                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            many tax-exempt organizations                                                                                                                                                                                                                                                                                                        Unlike employee plans,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  this number has increased 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ;and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Since 1993,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Tax Exempt Bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Because they lack a
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Exempt organi-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 when about
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       FSLG                                                                                                                                                                 these 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      most
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         .

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 TEGE Broch  9/27/04  11:41 AM  Page 4

                                                                                                  billion in employment tax and income tax withholding.                                                                                                      controlling about $8 trillion in assets and paying over $300                                                                                                   of tax administration,                                                                                                                   income tax,                                                                                                                                                          pension funds.While these entities are not subject to federal                                                                         community organizations to sovereign Indian tribes to large                                                                                                 oversee a diverse range of customers,                                                                                                                            Exempt Organizations (EO)                                                               TE/GE’s three major business units —                                                                                                                                                  TE/GE CUSTOMER BASE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       TAX
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  its mission statement:                                                                                     to meeting the needs of its customers is expressed in                                                     and compliance activities.TE/GE’s strong commitment                                                                                                                  base,                                                                                                    end service and accountability to its unique customer                                                                      in complying with the tax laws.TE/GE provides end-to-                                                                                         plans,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           tax law with integrity and fairness to all.                                                                    and to protect the public interest by applying the                                                                                           understand and comply with applicable tax laws                                                            customers top quality service by helping them                                                                    To  provide tax exempt and government entity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            division addresses the special needs of pension                                               he Tax Exempt and Government Entities (TE/GE) 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            including education and outreach,                                                                                                                                                                                                                                                                                                                                                 exempt organizations,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     they nonetheless represent a significant aspect                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   EXEMPT

                                                                                                                                                                                                                                                                                                                                                                                                                            with approximately three million entities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       , and 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Government Entities (GE)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              and government entities 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            from small volunteer                                                                                                                                                                                                                                      Employee Plans (EP)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       GOVERNMENT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            customer service,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       —                                                                                             ,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ENTITIES

organizations cease operations.Thus,                                                                                                                    organizations are not required to file,                                                                                                                           $25,000 do not file an annual return,                                                                                                      over $2 trillion.                                                                                                                               base consists of nearly 1.6 million organizations with assets                                                                                                                      complex requirements for tax-exempt status.This customer                                                                            organizations                                                                                                                         itable,                                                                                                                                                   Exempt Organizations (EO)                                                                                                                                     EXEMPT ORGANIZATIONS (EO)                                                                                                                                                    www.irs.gov/ep                                                                                                an unexpected tax event due to some error in the plan.                                                          in a plan who needs the assurance that there will not be                                                               its greatest impact is on the average citizen — a participant                            world by accountants,                                                     complex nature and is generally conducted in the financial ance with new laws and regulations.This work is of a highly                          plan,                                                                                                  compliance with the tax law and regulations for each group                                                                                                                  of more than $4 trillion.                                              data,                                                                                    is meeting all requirements.                                       but many request a determination from                                                                                                   deferred compensation plans are not required to file returns,                                                            403(b) tax-sheltered annuities,                                                         plans.                                                                                                                       401(k),                                                                                                                    must file annual returns for group pension,                                                                     benefit plans.                                                                                                      Employee Plans (EP)                                                                                                                                                                                       EMPLOYEE PLANS (EP)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 EP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               but must also review plans to ensure continuing compli-                                                                                                           provides not only an initial determination to establish                                                                                                                                 approximately one million private plans controlled assets                                                                                                                                                                                                                                                                                                                                                                                                                                                            Simplified Employee Pensions (SEPs),
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  social, educational, political, and other not-for-profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 employee stock ownership (ESOP),

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            meet and maintain compliance with the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Currently,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Organizations with income of less than

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     attorneys,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       there are nearly one million plans that                                       serves the market of qualified pension
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Based on the most recent return
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ensures that religious,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        and IRC 457 government
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     and actuaries.
the exact number of                                                                                                                                     and every year many                                                                                                                                               churches and other
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           EP
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     to ensure the plan                                                                                                                                                                                                                                                                                                                                       SIMPLE plans,                                                                                                                and stock bonus                                                                                                            profit-sharing,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     However,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       char-

                                     require coordination with other federal agencies at national                                                                                               tribal governments and activities are complex and frequently                                                                                                    subdivisions and business activities.Tax issues relating to                                                                                tribes that account for over 2,500 entities of government                                                                                                                                                                                                                                                                                             $3.7 trillion.                                                                                                   of nearly $3 trillion and have an economic impact of over                                                                                                ees in the United States.) They also buy goods and services                                                         in excess of $200 billion.                                                         about $760 billion annually and paying employment taxes                           customers employ 20% of the American workforce earning                                               and paying employment taxes.The almost 88,000                                                        governments are responsible for income tax withholding                                                                                                     (TEB)                                                                                                (FSLG)                                                                                      types of customers:                                                         Government Entities (GE)                                                                                                                        GOVERNMENT ENTITIES (GE)                                                                                                        www.irs.gov/eo                                                                                                     zations are a major source of telephone inquiries to CAS                           (CAS) to provide them with tax law guidance.                                                           rely on the assistance of                                     professional accounting staff,                                                                                                    have a staff of fewer than ten employees.                                                               exempt organizations are started and run by volunteers and                                 by an average of 5% annually.                                                               61,000 applications were received,                                                                                       mination of their tax-exempt status.                                                                                                                                                                                                               tions filed an annual return.                                                                                               However,                                                                                    qualified organizations cannot be determined from IRS filings.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   GE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             In FY 2003,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            . Although not subject to federal income tax,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   customers also include 564 federally recognized Indian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ;Indian Tribal Governments (ITG)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          for 2002,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  over 90,000 organizations requested a deter-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Federal,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        more than 800,000 tax-exempt organiza-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (This is the largest block of employ-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               TE/GE Customer Account Services
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          State and Local Governments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           encompasses three distinct                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            many tax-exempt organizations                                                                                                                                                                                                                                                                                                        Unlike employee plans,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  this number has increased 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ;and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Since 1993,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Tax Exempt Bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Because they lack a
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Exempt organi-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 when about
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       FSLG                                                                                                                                                                 these 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      most
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         .

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            TEGE Broch  9/27/04  11:41 AM  Page 1

                                                                                                                                                                                                                                                                                      number is (877)829-5500.                                                     on TE/GE tax-related topics.The CAS toll-free phone                                                          answered over 438,000 telephone calls and 25,500 letters                       tions,                                can help customers with returns, tion and assistance to TE/GE customers.                      Customer Account Services (CAS) CUSTOMER ACCOUNT SERVICES (CAS)           www.irs.gov/bonds www.irs.gov/tribes                     www.irs.gov/govts                 www.irs.gov/ge                              value from $650 billion to $1.8 trillion.                 1985 and 2002.This paralleled a growth in tax-exempt bond               450,000 notifications of tax-exempt bond issuances,                                                                         regarding tribal sovereignty.                   tion and tax reporting for Indian tribes and raise new issues mercial enterprises.These activities often complicate informa-                          has enabled tribes to expand into other industries and com- market in the United States economy.This source of funds                 industry has made it the largest revenue producing gaming                                                      and local levels.The rapid growth of the Indian-owned
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  In the tax-exempt bond area,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               and verification of tax-exempt status.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     determination applica-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       the IRS received more than
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              provides tax informa-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      In addition,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               In FY 2003,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CAS                                                                                                                                                                                                                                                                                                                                                                                                             between
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               CAS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          gaming

Catalog Number 29780 Publication3608(Rev.10-04)            Internal Revenue Service Department of the Treasury                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Director, Janina Skufca                        Director,                             Preston Butcher                        Director,                                                      Martha Sullivan                                                           Director,                                                         Carol D. Gold                                       Deputy Commissioner                               Sarah Hall Ingram                                                               Commissioner                                                           Steven T. Miller                                                                                                                      TE/GE LEADERSHIP
                                                www.irs.gov
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   CAS                                            Government Entities                                                          Exempt Organizations                                                                                                                     Employee Plans

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (513)                                                                      (202)                                                       (202)                                                                                                                                                                                 (202)                                                                                                 (202)                                                                                                                                          (202)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             263-3733                                                                   283-2900                                                    283-2300                                                                                                                                                                              283-2100                                                                                              283-2700                                                                                                                                       283-2500

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     TE/GE MISSION STATEMENT
                                                                                                               the tax law with integrity                      and to protect the public with applicable tax laws understand and comply service by helping them                                                                                                                                                        and Government Entities
                                                                                                                                                                                                                                                                customers top quality                                                                                                                                                                                                                                                    To provide Tax Exempt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          TAX EXEMPT
                                                                                                                                          interest by applying 
                                                                                    and fairness to all.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ENTITIES
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              GOVERNMENT

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 ENTITIES (TE/GE) TAX EXEMPT AND GOVERNMENT                         INTERNAL REVENUE SERVICE

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            TEGE Broch  9/27/04  11:41 AM  Page 1

                                                                                                                                                                                                                                                                                      number is (877)829-5500.                                                     on TE/GE tax-related topics.The CAS toll-free phone                                                          answered over 438,000 telephone calls and 25,500 letters                       tions,                                can help customers with returns, tion and assistance to TE/GE customers.                      Customer Account Services (CAS) CUSTOMER ACCOUNT SERVICES (CAS)           www.irs.gov/bonds www.irs.gov/tribes                     www.irs.gov/govts                 www.irs.gov/ge                              value from $650 billion to $1.8 trillion.                 1985 and 2002.This paralleled a growth in tax-exempt bond               450,000 notifications of tax-exempt bond issuances,                                                                         regarding tribal sovereignty.                   tion and tax reporting for Indian tribes and raise new issues mercial enterprises.These activities often complicate informa-                          has enabled tribes to expand into other industries and com- market in the United States economy.This source of funds                 industry has made it the largest revenue producing gaming                                                      and local levels.The rapid growth of the Indian-owned
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  In the tax-exempt bond area,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               and verification of tax-exempt status.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     determination applica-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       the IRS received more than
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              provides tax informa-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      In addition,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               In FY 2003,

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CAS                                                                                                                                                                                                                                                                                                                                                                                                             between
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               CAS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          gaming

Catalog Number 29780 Publication3608(Rev.10-04)            Internal Revenue Service Department of the Treasury                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Director, Janina Skufca                        Director,                             Preston Butcher                        Director,                                                      Martha Sullivan                                                           Director,                                                         Carol D. Gold                                       Deputy Commissioner                               Sarah Hall Ingram                                                               Commissioner                                                           Steven T. Miller                                                                                                                      TE/GE LEADERSHIP
                                                www.irs.gov
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   CAS                                            Government Entities                                                          Exempt Organizations                                                                                                                     Employee Plans

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (513)                                                                      (202)                                                       (202)                                                                                                                                                                                 (202)                                                                                                 (202)                                                                                                                                          (202)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             263-3733                                                                   283-2900                                                    283-2300                                                                                                                                                                              283-2100                                                                                              283-2700                                                                                                                                       283-2500

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     TE/GE MISSION STATEMENT
                                                                                                               the tax law with integrity                      and to protect the public with applicable tax laws understand and comply service by helping them                                                                                                                                                        and Government Entities
                                                                                                                                                                                                                                                                customers top quality                                                                                                                                                                                                                                                    To provide Tax Exempt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          TAX EXEMPT
                                                                                                                                          interest by applying 
                                                                                    and fairness to all.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ENTITIES
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              GOVERNMENT

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 ENTITIES (TE/GE) TAX EXEMPT AND GOVERNMENT                         INTERNAL REVENUE SERVICE