Demutualization.biz

C. D. Ulrich, CPA - MN Certificate #02036
12666 Noble Fir Dr So, Baxter, MN 56425
TEL: 218-828-4289                       FAX: 218-828-3719
cdu@charter.net

WE OFFER TO FILE CLAIMS FOR REFUND FOR POLICYHOLDERS WHO HAVE PAID INCOME TAXES

I strongly advise policyholders to report demutualization distributions on their original income tax returns in accordance with the IRS "zero basis" position, as stated in Rev. Rul. 71-233, and pay taxes on the amounts received as capital gain income. If this course of action has been taken by the taxpayer we are able to offer to file an amended tax return and pursue a claim for refund for them without any initial cost, under a 33&1/3^rd contingent fee basis, with no obligation until a refund is actually obtained for them. Detailed information on this offer can be obtained by contacting C.D. Ulrich, CPA (SEE ABOVE).

This offer is made to assure a recovery of improperly collected income taxes will be available to the great majority of taxpayers who believe that the IRS position is wrong. If you have not included demutualization income on your tax return and paid tax on it using using the "zero-basis" capital gain position set forth by the IRS, you could amend your return to report it using the "zero basis", pay the income tax on it and then have us file a second amended return to claim a refund of such tax. I strongly advise against not reporting and paying the tax on your original return for any period since this could make you and your income tax preparer subject to the assessment of both penalties and interest.

This issue is strictly a question of law, appropriately raised by the filing of an amended return which will be resolved by a court of law having jurisdiction over the matter, or an official change in position by the IRS. The filing of a claim for refund is a taxpayer right under the "taxpayers bill of rights", and taxpayers should have no hesitancy in exercising it. We have developed uniform grounds for refund over a four year period as our private work product in this matter that we believe are comprehensive and expansive. You must file an amended return to receive a refund.

You should be aware that certain hazards may prohibit you from obtaining a refund if you file a "protective claim" or a claim for refund separately from our representation. Among others these include:

1. Using your own grounds for refund could prompt the IRS to raise a "variance" argument in court.
   
   
2. If we achieve class action certification at a later date, you may be excluded from the definition of the class by a very narrow definition of the class by the court.
   
   
3. The IRS may decide not to acquiesce to a favorable court decision for non-participants. This could force them to bring a separate action to obtain a refund.
   
   
4. A protective claim may require clarification or perfection in order to be accepted by the IRS.
   
   

In summary it is my belief that the interests of taxpayers are best served by active participation in the present challenge on an immediate basis, which was designed to avoid any immediate cost or any obligation for payment of professional fees unless a refund is obtained. The only absolute certainty is that the filing of a timely amended 1040X, 1041 or 1120 X tax return is the only way you can preserve and protect any refund of income taxes paid as a result of the "zero basis" directive of Rev. Ruling 71-233.

You must provide me with a copy of your tax returns for the years the tax was paid. The CPA contingent fee agreement may be accessed and completed on the main page by clicking on the "Contingent Fee Agreement" button.