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HomeMy WebLinkAboutExhibit 63 Remake-4Exhibit 63 Remake; Section 4 TracFone - TRS Emails Renton TracFone Audit Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Mon, Jan 9, 2017 at 2:00 PM Hi Nicholas, Hope you had a Happy New Year Day. We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this?  3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. Thanks, Nicolas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Mon, Jan 23, 2017 at 3:23 PM Hi Nicholas, Hope everything is going great for you. Just checking to see how things are coming along regarding the email below. Let us know if if you have any questions. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Monday, January 9, 2017 2:00 PM Subject: Net vs Gross Hi Nicholas, Hope you had a Happy New Year Day. We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this?  3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. Thanks, Nicolas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  RE: Net vs Gross Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Jan 26, 2017 at 2:46 PM Hi Mike – I’ll try to get you some feedback on your outstanding questions sometime next week, as I’ve been dealing with an on-site visitor all this week. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 23, 2017 6:23 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope everything is going great for you. Just checking to see how things are coming along regarding the email below. Let us know if if you have any questions. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Monday, January 9, 2017 2:00 PM Subject: Net vs Gross Hi Nicholas, Hope you had a Happy New Year Day. We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? 3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. Thanks, Nicolas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Jan 26, 2017 at 7:18 PM Hi Nicholas, Thanks for the update. Look forward to hearing from you next week. Let me know if you have any questions. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, January 26, 2017 2:46 PM Subject: RE: Net vs Gross Hi Mike – I’ll try to get you some feedback on your outstanding questions sometime next week, as I’ve been dealing with an on-site visitor all this week. Thanks, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 23, 2017 6:23 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope everything is going great for you. Just checking to see how things are coming along regarding the email below. Let us know if if you have any questions. Thanks Nicholas. Have a great afternoon. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Monday, January 9, 2017 2:00 PM Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you:   1. While working on the audit estimate spreadsheets, we  noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net."   Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?   2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this?    3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best.   Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Feb 3, 2017 at 11:59 AM Hi Nicholas, Hope you are doing great. Also, just checking to see how things are coming along with the information that we requested in the email below. Let me know if you have any questions. Thanks Nicholas. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, January 26, 2017 2:46 PM Subject: RE: Net vs Gross Hi Mike – I’ll try to get you some feedback on your outstanding questions sometime next week, as I’ve been dealing with an on-site visitor all this week. Thanks, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 23, 2017 6:23 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope everything is going great for you. Just checking to see how things are coming along regarding the email below. Let us know if if you have any questions. Thanks Nicholas. Have a great afternoon. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Monday, January 9, 2017 2:00 PM Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you:   1. While working on the audit estimate spreadsheets, we  noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net."   Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?   2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this?    3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best.   Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  RE: Net vs Gross Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Feb 9, 2017 at 10:47 AM Hi Mike – please see my responses to your questions bolded in green font below. As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person. The sit down does not have to be formal in order to walk you through the workings of our business. Regards, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope you had a Happy New Year Day. We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest. 3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Feb 9, 2017 at 2:32 PM Thanks, Nicholas, for the information.  We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward.  As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data.Thanks, and have a great day.Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below. As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person. The sit down does not have to be formal in order to walk you through the workings of our business. Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest.   3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, Feb 21, 2017 at 2:08 PM Hi Nicholas, Hope everything is going well. Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross Thanks, Nicholas, for the information.  We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward.  As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data? Thanks, and have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below. As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person. The sit down does not have to be formal in order to walk you through the workings of our business. Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest.   3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  RE: Net vs Gross Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Fri, Feb 24, 2017 at 7:40 AM Hi Mike – I expect to have at least some information for you today. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, February 21, 2017 5:08 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope everything is going well. Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross Thanks, Nicholas, for the information. We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward. As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data? Thanks, and have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below. As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person. The sit down does not have to be formal in order to walk you through the workings of our business. Regards, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope you had a Happy New Year Day. We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest. 3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Feb 24, 2017 at 12:50 PM Thanks Nicholas. That sounds great. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, February 24, 2017 7:40 AM Subject: RE: Net vs Gross Hi Mike – I expect to have at least some information for you today. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, February 21, 2017 5:08 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope everything is going well. Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas. Have a great afternoon. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross   Thanks, Nicholas, for the information. We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data.   Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference?   As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward.  As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules.   Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data?   Thanks, and have a great day.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross   Hi Mike – please see my responses to your questions bolded in green font below.   As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person.   The sit down does not have to be formal in order to walk you through the workings of our business.   Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.      From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest.   3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.      Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Mar 3, 2017 at 1:40 PM Hi Nicholas, Hope all is well. I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our emails: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city- wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit). I was also reviewing the audits for the different cities and I see that there is a Statute of Limitations for the City of Kennewick which ends on March 31, 2017. We will need to extend this a little longer, as these things take a little time to finalize. Let me know if you have any questions. Thanks Nicholas. Have a great weekend. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Friday, February 24, 2017 12:50 PM Subject: Re: Net vs Gross Thanks Nicholas. That sounds great. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, February 24, 2017 7:40 AM Subject: RE: Net vs Gross Hi Mike – I expect to have at least some information for you today. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, February 21, 2017 5:08 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope everything is going well. Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross Thanks, Nicholas, for the information. We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward. As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data? Thanks, and have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below.   As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person.   The sit down does not have to be formal in order to walk you through the workings of our business.   Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.      From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest.   3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  RE: Net vs Gross Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Wed, Mar 8, 2017 at 2:49 PM Hi Mike – having now wrapped up our month end closing, I’ll be regrouping on your audit s and should have additional retail sales files on Burien for you next week. I also expect to be able to comment on your net vs gross issue. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Friday, March 03, 2017 4:40 PM To: Nicholas Ford Subject: Re: Net vs Gross Hi Nicholas, Hope all is well. I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our emails: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit). I was also reviewing the audits for the different cities and I see that there is a Statute of Limitations for the City of Kennewick which ends on March 31, 2017. We will need to extend this a little longer, as these things take a little time to finalize. Let me know if you have any questions. Thanks Nicholas. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Friday, February 24, 2017 12:50 PM Subject: Re: Net vs Gross Thanks Nicholas. That sounds great. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, February 24, 2017 7:40 AM Subject: RE: Net vs Gross Hi Mike – I expect to have at least some information for you today. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, February 21, 2017 5:08 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope everything is going well. Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross Thanks, Nicholas, for the information. We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward. As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data? Thanks, and have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below. As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person. The sit down does not have to be formal in order to walk you through the workings of our business. Regards, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross Hi Nicholas, Hope you had a Happy New Year Day. We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest. 3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Wed, Mar 8, 2017 at 4:54 PM Thanks Nicholas. That sounds great. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 8, 2017 2:49 PM Subject: RE: Net vs Gross Hi Mike – having now wrapped up our month end closing, I’ll be regrouping on your audit s and should have additional retail sales files on Burien for you next week. I also expect to be able to comment on your net vs gross issue. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Friday, March 03, 2017 4:40 PM To: Nicholas Ford Subject: Re: Net vs Gross Hi Nicholas,   Hope all is well. I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our emails:     Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit).   I was also reviewing the audits for the different cities and I see that there is a Statute of Limitations for the City of Kennewick which ends on March 31, 2017. We will need to extend this a little longer, as these things take a little time to finalize.   Let me know if you have any questions.   Thanks Nicholas.   Have a great weekend.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Friday, February 24, 2017 12:50 PM Subject: Re: Net vs Gross   Thanks Nicholas. That sounds great.   Have a great weekend.   Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.     From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, February 24, 2017 7:40 AM Subject: RE: Net vs Gross   Hi Mike – I expect to have at least some information for you today.   Thanks,   Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.      From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, February 21, 2017 5:08 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope everything is going well.   Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas.   Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross Thanks, Nicholas, for the information. We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward. As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data? Thanks, and have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below.   As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person.   The sit down does not have to be formal in order to walk you through the workings of our business.   Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.      From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest.   3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Re: Net vs Gross Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, Mar 14, 2017 at 12:45 PM Hi Nicholas, Hope things have been going great for you. Just checking to see how things are coming along and if you have any questions. Also, we will need the signed waiver form for the City of Kennewick as soon as possible since the waiver ends on March 31, 2017. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 8, 2017 2:49 PM Subject: RE: Net vs Gross Hi Mike – having now wrapped up our month end closing, I’ll be regrouping on your audit s and should have additional retail sales files on Burien for you next week . I also expect to be able to comment on your net vs gross issue. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Friday, March 03, 2017 4:40 PM To: Nicholas Ford Subject: Re: Net vs Gross Hi Nicholas,   Hope all is well. I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our emails:     Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit).   I was also reviewing the audits for the different cities and I see that there is a Statute of Limitations for the City of Kennewick which ends on March 31, 2017. We will need to extend this a little longer, as these things take a little time to finalize.   Let me know if you have any questions.   Thanks Nicholas.   Have a great weekend.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Friday, February 24, 2017 12:50 PM Subject: Re: Net vs Gross   Thanks Nicholas. That sounds great.   Have a great weekend.   Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.     From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, February 24, 2017 7:40 AM Subject: RE: Net vs Gross   Hi Mike – I expect to have at least some information for you today.   Thanks,   Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.      From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, February 21, 2017 5:08 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope everything is going well.   Just checking to see if you have had a chance to review the questions below. Let us know if you have any questions. Thanks Nicholas.   Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, February 9, 2017 2:32 PM Subject: Re: Net vs Gross Thanks, Nicholas, for the information. We do appreciate all of your help with these audits. We will be looking forward to the before-2010 figures regarding the whole-company data. Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we wrap up the audits, we can then discuss the matter with the cities about your concerns and how they would like to move forward. As you probably remember, the cities have asked us to complete the audits before they would consider your request regarding any meetings. And as mentioned before, we do not plan to send out any assessments before you have had a chance to take a look at our audit schedules. Regarding Burien, we only have numbers going back as far as 2009 for the city-specific data. The audit date for this begins with 2003. Should we estimate these figures, or are you also working on obtaining this data? Thanks, and have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, February 9, 2017 10:47 AM Subject: RE: Net vs Gross Hi Mike – please see my responses to your questions bolded in green font below.   As discussed, from our end it would be preferable to enlighten you on our business model and answer your questions in-person.   The sit down does not have to be formal in order to walk you through the workings of our business.   Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.      From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, January 09, 2017 5:00 PM To: Nicholas Ford Subject: Net vs Gross   Hi Nicholas, Hope you had a Happy New Year Day.   We are working on the audit tax schedules, and have 3 questions for you: 1. While working on the audit estimate spreadsheets, we noticed something that we had missed earlier. The first chart you sent to us in June showing company-wide direct sales vs. airtime revenue just labeled the airtime revenue without inserting the word "net." But the chart you sent us in August, which showed the same and additional numbers, inserted a further clarification by labeling direct airtime and phone accessories as "net." Since these numbers are net and not gross, can you explain what was excluded from the gross to make them net? And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ? there is a revenue recognition concept involved, whereby some there are things such as deferrals, etc which are not a part of net revenue. Net revenue is basically recognized revenue. 2. Another question. In graphing the percents of indirect vs. direct sales, we noticed a big drop between 2010 and 2011. Not sure what you mean by ‘big drop’, based on the retail vs wholesale percentages provided from 2010 to 2011 – i.e., 2010: 17% (retail), 83% (wholesale); 2011: 21% (retail), 79% (wholesale). Was there a point when TracFone did 100% indirect sales? If so, when did that change? We are trying to figure a good way to estimate for the time before your data begins. We don't have indirect vs direct figures for earlier than 2010. Can you get those for us quickly, or should we work toward an educated estimate for this? I’ll be working on compiling retail vs wholesale figures for earlier than 2010, and seek to provide at my earliest.   3. The direct sales data years you gave us does not always correlate with the audit period. With your permission, we can expand the audit to match the direct-sales information you have given us, and estimate the years of the audit for years you have not. Another option would be to take the audit up to the present, although this would require either more data or some additional estimation. Another option is to include only the years open on the audit, which would require another audit to be opened to bring you up to the present. Whatever you want to do is your choice and we will go with it. Let us know what way you would think would be best. I do not give permission to alter the audit periods. Thanks, Nicolas.   Let us know if you have any questions.   Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, Mar 28, 2017 at 1:59 PM Hi Nichols, Hope all is going well. Just checking to see how things are coming along with our net/gross questions. Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back? Let us know if you have any questions. Thanks Nicholas. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Automatic reply: Net/Gross question and information for the City of Burien Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Tue, Mar 28, 2017 at 1:59 PM I am out of the office beginning on Tuesday, March 28th and returning on Monday, April 3rd.  I will be checking e-mail as often as I can.   If you need immediate assistance, please contact John Cavalieri, a Senior Manager in the Tax Department, at (305) 715-6578 or Scott Myott, a Senior Manager at (305) 715-6578.  RE: Net/Gross question and information for the City of Burien Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Wed, Mar 29, 2017 at 7:06 AM Hi Mike – I’m out of the office this week. 2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ Re: Net/Gross question and information for the City of Burien Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Wed, Mar 29, 2017 at 1:32 PM Sounds great. Thanks Nicholas. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – I’m out of the office this week.   2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols,   Hope all is going well.   Just checking to see how things are coming along with our net/gross questions.   Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back?   Let us know if you have any questions.   Thanks Nicholas.   Have a great day.   Mike     This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Re: Net/Gross question and information for the City of Burien Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, Apr 4, 2017 at 3:30 PM Hi Nicholas, I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our email: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? cities except the City of Burien (in which you are providing the additional information that we need for that audit). Thanks Nicholas. Let us know if you have any questions. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – I’m out of the office this week.   2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols,   Hope all is going well.   Just checking to see how things are coming along with our net/gross questions.   Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back?   Let us know if you have any questions.   Thanks Nicholas.   Have a great day.   Mike     This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   RE: Net/Gross question and information for the City of Burien Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Apr 6, 2017 at 2:24 PM Hi Mike – as I had mentioned previously, some things are done to arrive at the net airtime revenues (per financial statements) number, such as removing deferrals and retail margin. On the other hand, the retail city- wide sales numbers do not include such deferrals or retail margin. Also, please note that net airtime revenues do not constitute receipts but rather are recognized revenues (after adjusting to remove deferrals and retail margin), whereas the retail sales numbers represent sales (receipts) and not revenue. Given this, the percentages/ratios relating to retail sales vs net airtime revenues that you were given were merely used as a basis for deriving those ratios…which are rough measures of the retail vs. wholesale percentage proportions. Thus, while the net airtime revenues are company-wide revenues per the financial statements (and include both retail + wholesale recognized revenues after the mentioned adjustments), the city-wide retail sales amounts are the receipts as per the applicable city-level zip codes rather than revenues. We would be happy to talk through our retail sales and revenue recognition practices at our meeting/in-person. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, April 04, 2017 6:31 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Hi Nicholas, I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our email: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit). Thanks Nicholas. Let us know if you have any questions. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – I’m out of the office this week. 2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols, Hope all is going well. Just checking to see how things are coming along with our net/gross questions. Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back? Let us know if you have any questions. Thanks Nicholas. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Net/Gross question and information for the City of Burien Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Apr 6, 2017 at 6:02 PM Thanks Nicholas. I will review your email and let you know if we have any questions. Also, we look forward to receiving the Burien information. Thanks again for all of your help. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 6, 2017 2:24 PM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – as I had mentioned previously, some things are done to arrive at the net airtime revenues (per financial statements) number, such as removing deferrals and retail margin. On the other hand, the retail city- wide sales numbers do not include such deferrals or retail margin. Also, please note that net airtime revenues do not constitute receipts but rather are recognized revenues (after adjusting to remove deferrals and retail margin), whereas the retail sales numbers represent sales (receipts) and not revenue. Given this, the percentages/ratios relating to retail sales vs net airtime revenues that you were given were merely used as a basis for deriving those ratios…which are rough measures of the retail vs. wholesale percentage proportions. Thus, while the net airtime revenues are company-wide revenues per the financial statements (and include both retail + wholesale recognized revenues after the mentioned adjustments), the city-wide retail sales amounts are the receipts as per the applicable city-level zip codes rather than revenues.  We would be happy to talk through our retail sales and revenue recognition practices at our meeting/in-person. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, April 04, 2017 6:31 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Hi Nicholas,   I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our email: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit). Thanks Nicholas. Let us know if you have any questions. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien   Hi Mike – I’m out of the office this week.   2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols,   Hope all is going well.   Just checking to see how things are coming along with our net/gross questions.   Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back?   Let us know if you have any questions.   Thanks Nicholas.   Have a great day.   Mike     This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Re: Net/Gross question and information for the City of Burien Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Apr 7, 2017 at 4:21 PM Thanks, Nicolas. This answer should do us. We appreciate all of your help on this audit. Did you ever get the chance to send to us company-wide (retail vs wholesale) data for pre 2010? Remember on February 9th you emailed saying you were working on compiling these. If you cannot come up with them we will go ahead and estimate them. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com>  Sent: Thursday, April 6, 2017 2:24 PM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – as I had mentioned previously, some things are done to arrive at the net airtime revenues (per financial statements) number, such as removing deferrals and retail margin. On the other hand, the retail city- wide sales numbers do not include such deferrals or retail margin. Also, please note that net airtime revenues do not constitute receipts but rather are recognized revenues (after adjusting to remove deferrals and retail margin), whereas the retail sales numbers represent sales (receipts) and not revenue. Given this, the percentages/ratios relating to retail sales vs net airtime revenues that you were given were merely used as a basis for deriving those ratios…which are rough measures of the retail vs. wholesale percentage proportions. Thus, while the net airtime revenues are company-wide revenues per the financial statements (and include both retail + wholesale recognized revenues after the mentioned adjustments), the city-wide retail sales amounts are the receipts as per the applicable city-level zip codes rather than revenues. We would be happy to talk through our retail sales and revenue recognition practices at our meeting/in-person. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, April 04, 2017 6:31 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Hi Nicholas,   I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our email: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit). Thanks Nicholas. Let us know if you have any questions. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com>  Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien   Hi Mike – I’m out of the office this week.   2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols,   Hope all is going well.   Just checking to see how things are coming along with our net/gross questions.   Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back?   Let us know if you have any questions.   Thanks Nicholas.   Have a great day.   Mike     This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   RE: Net/Gross question and information for the City of Burien Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Apr 13, 2017 at 2:40 PM Hi Mike – I’ve been dealing with a visitor in our offices all week. I should be able to get prior 2010 year percentages (retail vs. wholesale sales) to you in another week or so. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Friday, April 07, 2017 7:22 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Thanks, Nicolas. This answer should do us. We appreciate all of your help on this audit. Did you ever get the chance to send to us company-wide (retail vs wholesale) data for pre 2010? Remember on February 9th you emailed saying you were working on compiling these. If you cannot come up with them we will go ahead and estimate them. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 6, 2017 2:24 PM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – as I had mentioned previously, some things are done to arrive at the net airtime revenues (per financial statements) number, such as removing deferrals and retail margin. On the other hand, the retail city- wide sales numbers do not include such deferrals or retail margin. Also, please note that net airtime revenues do not constitute receipts but rather are recognized revenues (after adjusting to remove deferrals and retail margin), whereas the retail sales numbers represent sales (receipts) and not revenue. Given this, the percentages/ratios relating to retail sales vs net airtime revenues that you were given were merely used as a basis for deriving those ratios…which are rough measures of the retail vs. wholesale percentage proportions. Thus, while the net airtime revenues are company-wide revenues per the financial statements (and include both retail + wholesale recognized revenues after the mentioned adjustments), the city-wide retail sales amounts are the receipts as per the applicable city-level zip codes rather than revenues. We would be happy to talk through our retail sales and revenue recognition practices at our meeting/in-person. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, April 04, 2017 6:31 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Hi Nicholas, I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our email: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit). Thanks Nicholas. Let us know if you have any questions. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – I’m out of the office this week. 2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols, Hope all is going well. Just checking to see how things are coming along with our net/gross questions. Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back? Let us know if you have any questions. Thanks Nicholas. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Net/Gross question and information for the City of Burien Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Apr 13, 2017 at 7:13 PM Thanks Nicholas. As soon as we get it we should be able to move forward. Also, let us know if you will still be able to get more information for us for the City of Burien. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 13, 2017 2:40 PM Subject: RE: Net/Gross question and information for the City of Burien Hi Mike – I’ve been dealing with a visitor in our offices all week. I should be able to get prior 2010 year percentages (retail vs. wholesale sales) to you in another week or so. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Friday, April 07, 2017 7:22 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Thanks, Nicolas. This answer should do us. We appreciate all of your help on this audit.   Did you ever get the chance to send to us company-wide (retail vs wholesale) data for pre 2010? Remember on February 9th you emailed saying you were working on compiling these. If you cannot come up with them we will go ahead and estimate them.    Have a great weekend.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 6, 2017 2:24 PM Subject: RE: Net/Gross question and information for the City of Burien   Hi Mike – as I had mentioned previously, some things are done to arrive at the net airtime revenues (per financial statements) number, such as removing deferrals and retail margin.   On the other hand, the retail city-wide sales numbers do not include such deferrals or retail margin.  Also, please note that net airtime revenues do not constitute receipts but rather are recognized revenues (after adjusting to remove deferrals and retail margin), whereas the retail sales numbers represent sales (receipts) and not revenue.   Given this, the percentages/ratios relating to retail sales vs net airtime revenues that you were given were merely used as a basis for deriving those ratios…which are rough measures of the retail vs. wholesale percentage proportions.    Thus, while the net airtime revenues are company-wide revenues per the financial statements (and include both retail + wholesale recognized revenues after the mentioned adjustments), the city-wide retail sales amounts are the receipts as per the applicable city-level zip codes rather than revenues.   We would be happy to talk through our retail sales and revenue recognition practices at our meeting/in-person.   Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.    From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, April 04, 2017 6:31 PM To: Nicholas Ford Subject: Re: Net/Gross question and information for the City of Burien Hi Nicholas,   I also wanted to check and see how things are coming along with the net and gross issue mentioned below in our email: Could you also provide a more direct answer to that part of the first question regarding "gross" and "net," that reads, "And were the figures for direct sales, which are not labeled "net," inclusive of the types of revenue excluded in these numbers? If so, is there any way of correcting this situation with a percentage of "net" vs "gross" ?" Once again, here we were wondering if your numbers for city-wide sales included the same part of revenues as the company-wide sales. Are they different? And if so, what is the percentage of difference? As soon as we receive this information, we should be able to come up with an estimate for all of the cities except the City of Burien (in which you are providing the additional information that we need for that audit).   Thanks Nicholas. Let us know if you have any questions. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Wednesday, March 29, 2017 7:06 AM Subject: RE: Net/Gross question and information for the City of Burien   Hi Mike – I’m out of the office this week.   2008 is not the furthest I can go back, so plan is to continue with prior periods when I’m back in office next week. Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, March 28, 2017 4:59 PM To: Nicholas Ford Subject: Net/Gross question and information for the City of Burien Hi Nichols,   Hope all is going well.   Just checking to see how things are coming along with our net/gross questions.   Also, are you going to be able to provide more information for us for the City of Burien, or is the year 2008 is the furthest that you can go back?   Let us know if you have any questions.   Thanks Nicholas.   Have a great day.   Mike     This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   2009 Company-wide Percentages Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Wed, Apr 19, 2017 at 2:50 PM Hi Nicholas, Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week? Thanks Nicholas. Let us know if you have any questions. Have a great afternoon. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   RE: 2005-2009 Company-wide Percentages Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Apr 20, 2017 at 8:28 AM Hi Mike – below is what I have for 2009 and prior. 2005 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 144,923,359 15% (2) Net Airtime Revenue (Per Financial Statements) 835,391,26 1 (3) Net Phones & Accessories Revenue (Per Financial Statements) 154,573,20 4 Total (2) + (3): 989,964,465 Company-Wide 1 minus Retail Percentage =85% 2006 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 183,941,718 14% (2) Net Airtime Revenue (Per Financial Statements) 1,109,590,59 3 (3) Net Phones & Accessories Revenue (Per Financial Statements) 191,439,59 0 Total (2) + (3): 1,301,030,183 Company-Wide 1 minus Retail Percentage =86% 2007 (1) Retail (Direct) Sales Amounts (Airtime & Phones)Company-Wide 198,841,018 14% (2) Net Airtime Revenue (Per Financial Statements) 1,234,818,01 7 (3) Net Phones & Accessories Revenue (Per Financial Statements) 166,497,93 8 Total (2) + (3): 1,401,315,955 Company-Wide 1 minus Retail Percentage =86% 2008 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 257,243,973 17% (2) Net Airtime Revenue (Per Financial Statements) 1,340,504,93 0 (3) Net Phones & Accessories Revenue (Per Financial Statements) 138,013,15 8 Total (2) + (3): 1,478,518,088 Company-Wide 1 minus Retail Percentage =83% 2009 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 303,511,516 18% (2) Net Airtime Revenue (Per Financial Statements) 1,523,738,22 4 (3) Net Phones & Accessories Revenue (Per Financial Statements) 171,713,81 7 Total (2) + (3): 1,695,452,041 Company-Wide 1 minus Retail Percentage =82% Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, April 19, 2017 5:51 PM To: Nicholas Ford Subject: 2009 Company-wide Percentages Hi Nicholas, Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week? Thanks Nicholas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: 2005-2009 Company-wide Percentages Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Mon, Apr 24, 2017 at 1:42 PM Thanks Nicholas. We will now move forward with the audit. For the City of Burien, we will go ahead and estimate 2003 and 2004 if that is okay with you. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 20, 2017 8:28 AM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – below is what I have for 2009 and prior. 2005 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 144,923,359 15% (2) Net Airtime Revenue (Per Financial Statements) 835,391,26 1 (3) Net Phones & Accessories Revenue (Per Financial Statements) 154,573,20 4 Total (2) + (3): 989,964,465 Company-Wide 1 minus Retail Percentage =85% 2006 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 183,941,718 14% (2) Net Airtime Revenue (Per Financial Statements) 1,109,590,59 3 (3) Net Phones & Accessories Revenue (Per Financial Statements) 191,439,59 0 Total (2) + (3): 1,301,030,183 Company-Wide 1 minus Retail Percentage =86% 2007 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 198,841,018 14% (2) Net Airtime Revenue (Per Financial Statements) 1,234,818,01 7 (3) Net Phones & Accessories Revenue (Per Financial Statements) 166,497,93 8 Total (2) + (3): 1,401,315,955 Company-Wide 1 minus Retail Percentage =86% 2008 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 257,243,973 17% (2) Net Airtime Revenue (Per Financial Statements) 1,340,504,93 0 (3) Net Phones & Accessories Revenue (Per Financial Statements) 138,013,15 8 Total (2) + (3): 1,478,518,088 Company-Wide 1 minus Retail Percentage =83% 2009 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 303,511,516 18% (2) Net Airtime Revenue (Per Financial Statements) 1,523,738,22 4 (3) Net Phones & Accessories Revenue (Per Financial Statements) 171,713,81 7 Total (2) + (3): 1,695,452,041 Company-Wide 1 minus Retail Percentage =82% Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, April 19, 2017 5:51 PM To: Nicholas Ford Subject: 2009 Company-wide Percentages Hi Nicholas,   Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week? Thanks Nicholas. Let us know if you have any questions. Have a great afternoon. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  RE: 2005-2009 Company-wide Percentages Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Apr 27, 2017 at 12:21 PM Hi Mike – it is fine for you to estimate 2003 and 2004 for Burien. However, could you use 2006 and 2007 which I don’t believe you have? I should provide that data to you. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, April 24, 2017 4:42 PM To: Nicholas Ford Subject: Re: 2005-2009 Company-wide Percentages Thanks Nicholas. We will now move forward with the audit. For the City of Burien, we will go ahead and estimate 2003 and 2004 if that is okay with you. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 20, 2017 8:28 AM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – below is what I have for 2009 and prior. 2005 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 144,923,359 15% (2) Net Airtime Revenue (Per Financial Statements) 835,391,26 1 (3) Net Phones & Accessories Revenue (Per Financial Statements) 154,573,20 4 Total (2) + (3): 989,964,465 Company-Wide 1 minus Retail Percentage =85% 2006 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 183,941,718 14% (2) Net Airtime Revenue (Per Financial Statements) 1,109,590,59 3 (3) Net Phones & Accessories Revenue (Per Financial Statements) 191,439,59 0 Total (2) + (3): 1,301,030,183 Company-Wide 1 minus Retail Percentage =86% 2007 (1) Retail (Direct) Sales Amounts (Airtime & Phones)Company-Wide 14% 198,841,018 (2) Net Airtime Revenue (Per Financial Statements) 1,234,818,01 7 (3) Net Phones & Accessories Revenue (Per Financial Statements) 166,497,93 8 Total (2) + (3): 1,401,315,955 Company-Wide 1 minus Retail Percentage =86% 2008 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 257,243,973 17% (2) Net Airtime Revenue (Per Financial Statements) 1,340,504,93 0 (3) Net Phones & Accessories Revenue (Per Financial Statements) 138,013,15 8 Total (2) + (3): 1,478,518,088 Company-Wide 1 minus Retail Percentage =83% 2009 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 303,511,516 18% (2) Net Airtime Revenue (Per Financial Statements) 1,523,738,22 4 (3) Net Phones & Accessories Revenue (Per Financial Statements) 171,713,81 7 Total (2) + (3): 1,695,452,041 Company-Wide 1 minus Retail Percentage =82% Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, April 19, 2017 5:51 PM To: Nicholas Ford Subject: 2009 Company-wide Percentages Hi Nicholas, Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week? Thanks Nicholas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: 2005-2009 Company-wide Percentages Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Apr 27, 2017 at 5:59 PM Hi Nicholas, Actually we were asking about the 2003 and 2004 for company-wide data we received on April 20, 2017 on the email below. Is that okay to estimate? Regarding 2006 and 2007 Billing and APP data, how long until we could get that from you? Thank again, Nicholas for all your help. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 27, 2017 12:21 PM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – it is fine for you to estimate 2003 and 2004 for Burien. However, could you use 2006 and 2007 which I don’t believe you have? I should provide that data to you. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, April 24, 2017 4:42 PM To: Nicholas Ford Subject: Re: 2005-2009 Company-wide Percentages Thanks Nicholas. We will now move forward with the audit. For the City of Burien, we will go ahead and estimate 2003 and 2004 if that is okay with you. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 20, 2017 8:28 AM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – below is what I have for 2009 and prior. 2005 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 144,923,359 15% (2) Net Airtime Revenue (Per Financial Statements) 835,391,26 1 (3) Net Phones & Accessories Revenue (Per Financial Statements) 154,573,20 4 Total (2) + (3): 989,964,465 Company-Wide 1 minus Retail Percentage =85% 2006 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 183,941,718 14% (2) Net Airtime Revenue (Per Financial Statements) 1,109,590,59 3 (3) Net Phones & Accessories Revenue (Per Financial Statements) 191,439,59 0 Total (2) + (3): 1,301,030,183 Company-Wide 1 minus Retail Percentage =86% 2007 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 198,841,018 14% (2) Net Airtime Revenue (Per Financial Statements) 1,234,818,01 7 (3) Net Phones & Accessories Revenue (Per Financial Statements) 166,497,93 8 Total (2) + (3): 1,401,315,955 Company-Wide 1 minus Retail Percentage =86% 2008 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 257,243,973 17% (2) Net Airtime Revenue (Per Financial Statements) 1,340,504,93 0 (3) Net Phones & Accessories Revenue (Per Financial Statements) 138,013,15 8 Total (2) + (3): 1,478,518,088 Company-Wide 1 minus Retail Percentage =83% 2009 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 303,511,516 18% (2) Net Airtime Revenue (Per Financial Statements) 1,523,738,22 4 (3) Net Phones & Accessories Revenue (Per Financial Statements) 171,713,81 7 Total (2) + (3): 1,695,452,041 Company-Wide 1 minus Retail Percentage =82% Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, April 19, 2017 5:51 PM To: Nicholas Ford Subject: 2009 Company-wide Percentages Hi Nicholas, Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week? Thanks Nicholas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. RE: 2005-2009 Company-wide Percentages Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Fri, Apr 28, 2017 at 2:17 PM Hi Mike – yes, it is okay for you to estimate the 2003 and 2004 company-wide data. As an aside, in order to not hold things up, for the 2006 and 2007 retail sales (BP and APP) data, you can estimate something on that as well upon the assumption that it can be ‘trued-up’ against the actuals that I’ll be working on assembling in order to provide to you as soon as practical from my end. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Thursday, April 27, 2017 9:00 PM To: Nicholas Ford Subject: Re: 2005-2009 Company-wide Percentages Hi Nicholas, Actually we were asking about the 2003 and 2004 for company-wide data we received on April 20, 2017 on the email below. Is that okay to estimate? Regarding 2006 and 2007 Billing and APP data, how long until we could get that from you? Thank again, Nicholas for all your help. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 27, 2017 12:21 PM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – it is fine for you to estimate 2003 and 2004 for Burien. However, could you use 2006 and 2007 which I don’t believe you have? I should provide that data to you. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, April 24, 2017 4:42 PM To: Nicholas Ford Subject: Re: 2005-2009 Company-wide Percentages Thanks Nicholas. We will now move forward with the audit. For the City of Burien, we will go ahead and estimate 2003 and 2004 if that is okay with you. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 20, 2017 8:28 AM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – below is what I have for 2009 and prior. 2005 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 144,923,359 15% (2) Net Airtime Revenue (Per Financial Statements) 835,391,26 1 (3) Net Phones & Accessories Revenue (Per Financial Statements) 154,573,20 4 Total (2) + (3): 989,964,465 Company-Wide 1 minus Retail Percentage =85% 2006 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 183,941,718 14% (2) Net Airtime Revenue (Per Financial Statements) 1,109,590,59 3 (3) Net Phones & Accessories Revenue (Per Financial Statements) 191,439,59 0 Total (2) + (3): 1,301,030,183 Company-Wide 1 minus Retail Percentage =86% 2007 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 198,841,018 14% (2) Net Airtime Revenue (Per Financial Statements) 1,234,818,01 7 (3) Net Phones & Accessories Revenue (Per Financial Statements) 166,497,93 8 Total (2) + (3): 1,401,315,955 Company-Wide 1 minus Retail Percentage =86% 2008 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 257,243,973 17% (2) Net Airtime Revenue (Per Financial Statements) 1,340,504,93 0 (3) Net Phones & Accessories Revenue (Per Financial Statements) 138,013,15 8 Total (2) + (3): 1,478,518,088 Company-Wide 1 minus Retail Percentage =83% 2009 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 303,511,516 18% (2) Net Airtime Revenue (Per Financial Statements) 1,523,738,22 4 (3) Net Phones & Accessories Revenue (Per Financial Statements) 171,713,81 7 Total (2) + (3): 1,695,452,041 Company-Wide 1 minus Retail Percentage =82% Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, April 19, 2017 5:51 PM To: Nicholas Ford Subject: 2009 Company-wide Percentages Hi Nicholas, Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week? Thanks Nicholas. Let us know if you have any questions. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: 2005-2009 Company-wide Percentages Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Apr 28, 2017 at 3:28 PM Hi Nicholas, Thanks for following up on this situation. We already have a mock-up of sorts we are working on completing, but at this point, it would be better that we not send it to you or to our client until we have the best numbers available, so that we would not need to update again. Approximately how long will these numbers take to get to us? Burien is of course anxious to get this audit finally completed, but we are pretty sure they don't want us to finish it twice. Let us know if you have any questions. Thanks again for all of your help. Have a great weekend. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, April 28, 2017 2:17 PM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – yes, it is okay for you to estimate the 2003 and 2004 company-wide data. As an aside, in order to not hold things up, for the 2006 and 2007 retail sales (BP and APP) data, you can estimate something on that as well upon the assumption that it can be ‘trued-up’ against the actuals that I’ll be working on assembling in order to provide to you as soon as practical from my end. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Thursday, April 27, 2017 9:00 PM To: Nicholas Ford Subject: Re: 2005-2009 Company-wide Percentages Hi Nicholas,   Actually we were asking about the 2003 and 2004 for company-wide data we received on April 20, 2017 on the email below. Is that okay to estimate? Regarding 2006 and 2007 Billing and APP data, how long until we could get that from you?   Thank again, Nicholas for all your help.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 27, 2017 12:21 PM Subject: RE: 2005-2009 Company-wide Percentages   Hi Mike – it is fine for you to estimate 2003 and 2004 for Burien. However, could you use 2006 and 2007 which I don’t believe you have? I should provide that data to you.   Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.   From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, April 24, 2017 4:42 PM To: Nicholas Ford Subject: Re: 2005-2009 Company-wide Percentages Thanks Nicholas. We will now move forward with the audit. For the City of Burien, we will go ahead and estimate 2003 and 2004 if that is okay with you. Have a great afternoon.   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, April 20, 2017 8:28 AM Subject: RE: 2005-2009 Company-wide Percentages Hi Mike – below is what I have for 2009 and prior. 2005 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 144,923,359 15% (2) Net Airtime Revenue (Per Financial Statements) 835,391,26 1 (3) Net Phones & Accessories Revenue (Per Financial Statements) 154,573,20 4 Total (2) + (3): 989,964,465 Company-Wide 1 minus Retail Percentage =85% 2006 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 183,941,718 14% (2) Net Airtime Revenue (Per Financial Statements) 1,109,590,59 3 (3) Net Phones & Accessories Revenue (Per Financial Statements) 191,439,59 0 Total (2) + (3): 1,301,030,183 Company-Wide 1 minus Retail Percentage =86% 2007 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 198,841,018 14% (2) Net Airtime Revenue (Per Financial Statements) 1,234,818,01 7 (3) Net Phones & Accessories Revenue (Per Financial Statements) 166,497,93 8 Total (2) + (3): 1,401,315,955 Company-Wide 1 minus Retail Percentage =86% 2008 (1) Retail (Direct) Sales Amounts (Airtime & Phones) Company-Wide 257,243,973 17% (2) Net Airtime Revenue (Per Financial Statements) 1,340,504,93 0 (3) Net Phones & Accessories Revenue (Per Financial Statements) 138,013,15 8 Total (2) + (3): 1,478,518,088 Company-Wide 1 minus Retail Percentage =83% 2009 (1) Retail (Direct) Sales Amounts (Airtime & Phones)Company-Wide 303,511,516 18% (2) Net Airtime Revenue (Per Financial Statements) 1,523,738,22 4 (3) Net Phones & Accessories Revenue (Per Financial Statements) 171,713,81 7 Total (2) + (3): 1,695,452,041 Company-Wide 1 minus Retail Percentage =82% Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, April 19, 2017 5:51 PM To: Nicholas Ford Subject: 2009 Company-wide Percentages Hi Nicholas,   Checking to see how long will it be for the 2009 company-wide percentage? We are looking forward to wrapping up the audit and coming up with an estimate. Is it possible to have his information by the end of the week?   Thanks Nicholas.   Let us know if you have any questions.   Have a great afternoon. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Re: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, May 9, 2017 at 12:45 PM Hi Nicholas, We noticed that there are no "Billing Platform Sales" on some 2007 reports, but there are "Brightpoint Direct" sales. Are both designations counted as direct sales? Thanks, Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Tuesday, November 10, 2015 11:56 AM Subject: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Hi Mike – in connection with the TracFone-Renton, WA Utility Users' Tax Audit, please find attached the Company’s retail (direct) sales summary reports for the August 2007 audit month. It should be noted that TracFone does not earn revenue in the City of Renton, Washington. **Additional data relating to the remaining audit periods for Burien are forthcoming in separate e-mails.** Thanks, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  RE: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Tue, May 9, 2017 at 2:28 PM Hi Mike – which city are you referring to? Renton? In any event, Brightpoint relates to retail phones sales only and has nothing to do with Billing Platform, which relates to retail sales of airtime. Since you’re auditing utility users’ taxes, phones should not apply to the tax base. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, May 09, 2017 3:45 PM To: Nicholas Ford Subject: Re: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Hi Nicholas, We noticed that there are no "Billing Platform Sales" on some 2007 reports, but there are "Brightpoint Direct" sales. Are both designations counted as direct sales? Thanks, Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Tuesday, November 10, 2015 11:56 AM Subject: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Hi Mike – in connection with the TracFone-Renton, WA Utility Users' Tax Audit, please find attached the Company’s retail (direct) sales summary reports for the August 2007 audit month. It should be noted that TracFone does not earn revenue in the City of Renton, Washington. **Additional data relating to the remaining audit periods for Burien are forthcoming in separate e-mails.** Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. Re: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, May 9, 2017 at 3:02 PM Thanks, Nicolas, that clears things up about Brightpoint. For Renton, we are missing all of 2007 Billing Platform data. We got the information for Internet Sales and Accessories, but not Billing Platform. We can estimate them if you like, the amounts should be small. Thanks again, Nicholas for all of your help. Have a great afternoon. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Tuesday, May 9, 2017 2:28 PM Subject: RE: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007 Hi Mike – which city are you referring to? Renton? In any event, Brightpoint relates to retail phones sales only and has nothing to do with Billing Platform, which relates to retail sales of airtime. Since you’re auditing utility users’ taxes, phones should not apply to the tax base. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Tuesday, May 09, 2017 3:45 PM To: Nicholas Ford Subject: Re: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007   Hi Nicholas,   We noticed that there are no "Billing Platform Sales" on some 2007 reports, but there are "Brightpoint Direct" sales. Are both designations counted as direct sales?   Thanks,   Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Tuesday, November 10, 2015 11:56 AM Subject: TracFone-Renton, WA Utility Users' Tax Audit -- Retail (Direct) Sales Summary Reports -- FOR AUGUST 2007   Hi Mike – in connection with the TracFone-Renton, WA Utility Users' Tax Audit, please find attached the Company’s retail (direct) sales summary reports for the August 2007 audit month.   It should be noted that TracFone does not earn revenue in the City of Renton, Washington.   **Additional data relating to the remaining audit periods for Burien are forthcoming in separate e-mails.**   Thanks,     Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  Missing Billing Platform Sales Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Wed, May 10, 2017 at 4:38 PM Hi Nicholas, After reviewing the information we noticed that we are missing the Billing Platform sales for Burien: 4/06 through 12/06; 1/07 through 5/07; and 7/07. Are we correct in assuming that Western Union was the billing sales of 1/06 through 3/06? We are also missing Billing Platform sales, as you know, for Renton for all of 2007. Will you be able to get these to us right away, or will we need to estimate them? Thanks Nicholas for checking this out for us. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  RE: Missing Billing Platform Sales Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, May 11, 2017 at 7:14 AM Hi Mike – see below          Billing Platform was not in existence as a customer retail sales transaction interface until May 2007. As such, there are no Billing Platform sales for Burien in 2006 (i.e., 4/06—12/06) or 2007 (i.e., 1/07— 4/07). For May 2007, there were no Billing Platform sales for Burien and thus you did not receive a file. Please check your e-mail on May 2nd for the Burien Billing Platform file for July 2007 that I sent you.          Prior to the existence of the Billing Platform customer retail sales transaction interface, Western Union was being used (as well as APP) for retail sales of airtime. And you are not correct to say that Western Union was the Billing Platform.          Per my 1st bullet point, Billing Platform was not in existence to record retail sales transactions during the 1/07—4/07 period. For May 2007, there were no Billing Platform sales for Renton. However, I will be sending you today the Billing Platform retail sales reports for Renton for 6/07—12/07. You can let me know if you are missing anything else. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, May 10, 2017 7:38 PM To: Nicholas Ford Subject: Missing Billing Platform Sales Hi Nicholas, After reviewing the information we noticed that we are missing the Billing Platform sales for Burien: 4/06 through 12/06; 1/07 through 5/07; and 7/07. Are we correct in assuming that Western Union was the billing sales of 1/06 through 3/06? We are also missing Billing Platform sales, as you know, for Renton for all of 2007. Will you be able to get these to us right away, or will we need to estimate them? Thanks Nicholas for checking this out for us. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Re: Missing Billing Platform Sales Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, May 11, 2017 at 11:44 AM Hi Nicholas, We were wondering about when the data shows that no Billing Platform or Western Union sales are completed in a city: can you tell us what is happening in that situation? Where all direct sales done APP at that time? It looked particularly strange in the case of Burien 7/07, which had Billing Platform sales the month before and none that month, but we looked more closely, and there are two submittals for that month, one with Billing Platform, and one without, so that's all good. Thanks Nicholas, and we will be looking forward to the Renton information you will be sending today. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Thursday, May 11, 2017 7:14 AM Subject: RE: Missing Billing Platform Sales Hi Mike – see below          Billing Platform was not in existence as a customer retail sales transaction interface until May 2007. As such, there are no Billing Platform sales for Burien in 2006 (i.e., 4/06—12/06) or 2007 (i.e., 1/07— 4/07). For May 2007, there were no Billing Platform sales for Burien and thus you did not receive a file. Please check your e-mail on May 2nd for the Burien Billing Platform file for July 2007 that I sent you.          Prior to the existence of the Billing Platform customer retail sales transaction interface, Western Union was being used (as well as APP) for retail sales of airtime. And you are not correct to say that Western Union was the Billing Platform.          Per my 1st bullet point, Billing Platform was not in existence to record retail sales transactions during the 1/07—4/07 period. For May 2007, there were no Billing Platform sales for Renton. However, I will be sending you today the Billing Platform retail sales reports for Renton for 6/07—12/07. You can let me know if you are missing anything else. Thanks, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Wednesday, May 10, 2017 7:38 PM To: Nicholas Ford Subject: Missing Billing Platform Sales   Hi Nicholas, After reviewing the information we noticed that we are missing the Billing Platform sales for Burien: 4/06 through 12/06; 1/07 through 5/07; and 7/07. Are we correct in assuming that Western Union was the billing sales of 1/06 through 3/06? We are also missing Billing Platform sales, as you know, for Renton for all of 2007. Will you be able to get these to us right away, or will we need to estimate them? Thanks Nicholas for checking this out for us. Have a great day. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   NOTE: At this point, TracFone began sending zip code retail sales/reports. These sent to TRS on 5/11/17 were submitted seperately. TRS <crisp@trs-integrity.com> To:Nicholas Ford Mon, May 15, 2017 at 2:48 PM Hi Nicholas, Hope you had a great weekend. We found out Friday that Renton residents make up a small amount of the zip code 98178, but the number is material, about 496 people, (2%) of the zip code according to city-data.com. We can either have you pull these for us, or increase the estimate by the 98178 population by using a percentage. We would prefer the real numbers, but are concerned that it will take too much additional time. Let us know what works best for you. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Re: Renton Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Tue, May 16, 2017 at 11:48 AM Hi Mike -- I'm actually on the road traveling. I expect to be back in the office on Thursday and will look at your zip code below. Once I have a look, I'd let you know a better time gauge as to when I could turn it around to you. From: TRS <crisp@trs-integrity.com> Sent: Monday, May 15, 2017 5:48 PM To: Nicholas Ford Subject: Renton Hi Nicholas, Hope you had a great weekend. We found out Friday that Renton residents make up a small amount of the zip code 98178, but the number is material, about 496 people, (2%) of the zip code according to city-data.com. We can either have you pull these for us, or increase the estimate by the 98178 population by using a percentage. We would prefer the real numbers, but are concerned that it will take too much additional time. Let us know what works best for you. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Re: Renton Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, May 16, 2017 at 12:20 PM Thanks Nicholas. Sounds great. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Tuesday, May 16, 2017 11:48 AM Subject: Re: Renton Hi Mike -- I'm actually on the road traveling. I expect to be back in the office on Thursday and will look at your zip code below. Once I have a look, I'd let you know a better time gauge as to when I could turn it around to you. From: TRS <crisp@trs-integrity.com> Sent: Monday, May 15, 2017 5:48 PM To: Nicholas Ford Subject: Renton Hi Nicholas, Hope you had a great weekend. We found out Friday that Renton residents make up a small amount of the zip code 98178, but the number is material, about 496 people, (2%) of the zip code according to city-data.com. We can either have you pull these for us, or increase the estimate by the 98178 population by using a percentage. We would prefer the real numbers, but are concerned that it will take too much additional time. Let us know what works best for you. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Information requested: Spokane and Renton Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, May 23, 2017 at 2:06 PM Hi Nicholas, Hope things have been going great for you. I believe we are still waiting on the zip code data for Spokane (May 12th), with the Spokane Valley data removed, and the zip code data for the missing zip code for Renton. Thanks Nicholas. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    Infoormation for the TracFone audit Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, May 26, 2017 at 2:44 PM Hi Nicholas, Just checking to see how things are coming along with the zip code data for Spokane (May 12th), with the Spokane Valley data removed, and the zip code data for the missing zip code for Renton. Let us know if you have any questions. Thanks Nicholas. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  NOTE: At this point, TRS began sending the Zip Code data which included the 98178 zip code numbers. These emails and attachments were sent to TRS on 6/2/17, and have already been submitted by TRS to Renton.  Data Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Tue, Jun 6, 2017 at 2:52 PM Hi Nicholas, Hope everything is going well with you. We want to thank you for the mountains of work you have been doing to get the information to us for these audits. It must take a lot of time and attention, but it is the last leg to completing the estimate, and we appreciate all you are putting into it. We understand that with three cities needing data-fixes at once, it can be a lot to handle. To recap what is yet needed: 1. The rest of the Renton add-1 zip data is coming in quickly, thank you. We were concerned, however, that the 2007 data does not include billing platform, even for years which should have it. 2. The Spokane questions we sent you need answering. If we misunderstood and the only thing missing with the data was the +4's already given to us, we could do these ourselves, if that would help. 3. The Federal Way missing zip code data. We told Federal Way that you would be able to get this information to us quickly. Our internet source indicates that this zip would add approximately 3,000 Federal Way citizens to the mix. Let us know if you have any questions, and thanks again, Nicholas. Mike be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    Re: Data Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Mon, Jun 12, 2017 at 5:58 PM Hi Nicholas, Thank you so much for all of the information you have been sending us for Federal Way! As mentioned below, the 2007 data for Renton does not include billing platform, even for the years after May which should have it. You are probably already working on this, or are about to get to it; however, we can't be sure, so I sending you this email. Have a great day, Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Tuesday, June 6, 2017 2:52 PM Subject: Data Hi Nicholas, Hope everything is going well with you. We want to thank you for the mountains of work you have been doing to get the information to us for these audits. It must take a lot of time and attention, but it is the last leg to completing the estimate, and we appreciate all you are putting into it. We understand that with three cities needing data-fixes at once, it can be a lot to handle. To recap what is yet needed: 1. The rest of the Renton add-1 zip data is coming in quickly, thank you. We were concerned, however, that the 2007 data does not include billing platform, even for years which should have it. 2. The Spokane questions we sent you need answering. If we misunderstood and the only thing missing with the data was the +4's already given to us, we could do these ourselves, if that would help. 3. The Federal Way missing zip code data. We told Federal Way that you would be able to get this information to us quickly. Our internet source indicates that this zip would add approximately 3,000 Federal Way citizens to the mix. Let us know if you have any questions, and thanks again, Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Missing sums Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Jun 22, 2017 at 1:22 PM Hi Nicholas, not summed? Thanks Nicholas.  Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   RE: Data - Renton Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Jun 22, 2017 at 1:39 PM Hi Mike – please see bullet points below regarding your questions in the attached e-mail.          Billing Platform was not in existence as a customer retail sales transaction interface until May 2007. For May—August 2007, there were no Billing Platform sales for the Renton 98178 Zip Code and thus you did not receive an additional file with the extra zip added.          There was Billing Platform sales activity for the extra 98178 zip code for Renton for September —December 2007. *Please find those Billing Platform files attached to this e-mail.* Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, June 12, 2017 8:59 PM To: Nicholas Ford Subject: Re: Data Hi Nicholas, Thank you so much for all of the information you have been sending us for Federal Way! As mentioned below, the 2007 data for Renton does not include billing platform, even for the years after May which should have it. You are probably already working on this, or are about to get to it; however, we can't be sure, so I sending you this email. Have a great day, Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Tuesday, June 6, 2017 2:52 PM Subject: Data Hi Nicholas, Hope everything is going well with you. We want to thank you for the mountains of work you have been doing to get the information to us for these audits. It must take a lot of time and attention, but it is the last leg to completing the estimate, and we appreciate all you are putting into it. We understand that with three cities needing data-fixes at once, it can be a lot to handle. To recap what is yet needed: 1. The rest of the Renton add-1 zip data is coming in quickly, thank you. We were concerned, however, that the 2007 data does not include billing platform, even for years which should have it. 2. The Spokane questions we sent you need answering. If we misunderstood and the only thing missing with the data was the +4's already given to us, we could do these ourselves, if that would help. 3. The Federal Way missing zip code data. We told Federal Way that you would be able to get this information to us quickly. Our internet source indicates that this zip would add approximately 3,000 Federal Way citizens to the mix. Let us know if you have any questions, and thanks again, Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Download all attachments as a zip file  20170622 - TracFone Renton Audit Sep. 2007 Billing Platform Sales - Extra Zip 98178 Added.xls 32kB 20170622 - TF-Renton Audit October 2007 Billing Platform - Extra Zip Added 98178.xls 32kB 20170622- TF-Renton Audit November 2007 Billing Platform - Extra Zip 98178 Added.xls 32kB 20170622 - TF-Renton Audit Dec 2007 Billing Platform - Extra Zip 98178 Added.xls 32.5kB  RE: Missing sums Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Thu, Jun 22, 2017 at 1:47 PM Hi Mike – the files you reference below were complete, but for the fact they were not summed by mistake. In the attached, I’m resending them with totals populated at the bottom of each file. Thanks, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Thursday, June 22, 2017 4:23 PM To: Nicholas Ford Subject: Missing sums Hi Nicholas, When inputting the enterprise amounts I noticed that the Renton September 2010 and the Federal Way November 2008 amount were not summed at the bottom. Are those documents complete but simply not summed? Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Download all attachments as a zip file  20170612 - TracFone Federal Way Audit November 2008 Billing Platform Sales - Extra Zip Added.xls 36.5kB 20170607 - TracFone-Renton Audit Sept. 2010 Internet Sales - Extra Zip 98178 Added.xls 31.5kB  TracFone methodology Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Jun 30, 2017 at 12:57 PM Hi Nicholas, Hope all is well. Thanks for all of the information that you have sent to us for the audits. We have attached a copy of the methodology of coming up with an estimate. The areas highlighted on the second page are highlighted because they only apply to some of the audits, as others do not go back that far. Let us know if you have any questions. Thanks Nicholas. This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   DocGeneralMethodology.doc 27kB TRACFONE WAIVER KENNEWICK Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Wed, Jul 19, 2017 at 4:41 PM Hi Nicholas, Hope things are going well with you. Just checking to see see how things are coming along with the email below and if you have any questions with the methodology. We will need to hear from you by Friday. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, July 6, 2017 4:03 PM Subject: TRACFONE WAIVER KENNEWICK Hi Nicholas, We noticed that the Kennewick waiver is expiring at the end of July. If you want time to look over and discuss the audit, we will need you to go ahead and sign a new waiver. See attached. Also let us know if you have any questions on the methodology. Let us know. Thanks Nicholas. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Statute of Limitations Kennewick for year 2010, 2011 and 2012-TracFone through 9-30-17.doc 15kB  Automatic reply: TRACFONE WAIVER KENNEWICK Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Wed, Jul 19, 2017 at 4:45 PM I am out of the office beginning Wednesday, July 19th and returning on Monday, July 24th.  I expect to be on e- mail and also checking voicemail as often as I can.   If you need immediate assistance, please contact John Cavalieri, a Senior Manager in the Tax Department, at (305) 715-6578 or Scott Myott, a Senior Manager at (305) 715-6778.  Re: TRACFONE WAIVER KENNEWICK Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Jul 21, 2017 at 3:47 PM Thanks Nicholas. We look forward to receiving it. Could you have it to us by the 26th? Also, could you let me know if you have any questions by Wednesday with the methodology? If not, we can move forward with the audit. Thanks Nicholas. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, July 21, 2017 2:24 PM Subject: RE: TRACFONE WAIVER KENNEWICK Hi Mike - I'm presently out of the office until monday july 24. I can send you the waiver prior to friday july 28th. ________________________________________ From: TRS [crisp@trs-integrity.com] Sent: Wednesday, July 19, 2017 7:41 PM To: Nicholas Ford Subject: TRACFONE WAIVER KENNEWICK Hi Nicholas, Hope things are going well with you. Just checking to see see how things are coming along with the email below and if you have any questions with the methodology. We will need to hear from you by Friday. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Hi Mike - I'm out of thr ----- Forwarded Message ----- From: TRS <crisp@trs-integrity.com> To: Nicholas Ford <nford@tracfone.com> Sent: Thursday, July 6, 2017 4:03 PM Subject: TRACFONE WAIVER KENNEWICK Hi Nicholas, We noticed that the Kennewick waiver is expiring at the end of July. If you want time to look over and discuss the audit, we will need you to go ahead and sign a new waiver. See attached. Also let us know if you have any questions on the methodology. Let us know. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. RE: TRACFONE WAIVER KENNEWICK Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Wed, Jul 26, 2017 at 3:26 PM Hi Mike – attached please find the signed Kennewick statute waiver. And as you know, we certainly would appreciate time to meet with you to look over and discuss your audit results. Our thinking is that you having the attached waiver will afford us that opportunity to sit down together and discuss the audit. As far as your methodology goes, yes we do anticipate that we will have questions but think it is better we put that on the agenda for our meeting so that we could walk through it in conjunction with your estimate, as well as ask questions. Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Thursday, July 06, 2017 7:03 PM To: Nicholas Ford Subject: TRACFONE WAIVER KENNEWICK Hi Nicholas, We noticed that the Kennewick waiver is expiring at the end of July. If you want time to look over and discuss the audit, we will need you to go ahead and sign a new waiver. See attached. Also let us know if you have any questions on the methodology. Let us know. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  20170726 - TracFone-Kennewick Audit - SOL Waiver.pdf 226.6kB   TracFone Tax Schedules Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Aug 4, 2017 at 1:10 PM Hi Nicholas, Hope things have been going well with you. We have already sent you the general methodology which is approximate for each city; we will be sending each city's specific methodology in a separate email. Burien and Tukwila are still reviewing the spreadsheets, and so there may be improvements and adjustments coming along there. Enclosed with this email you will find the tax schedules.The spreadsheets are pretty complex, since we had to approximate the taxable values using sales figures, and then reduce them by various factors. Here are some additional explanations that will make reading the schedules easier: 1. Notice that the Original Tax Reported Sheet is blank. No tax was reported. That part is easy! 2. The Unreported Revenue Sheet has columns defined on the Methodology sheet, but to simplify: -The Non-Direct Sales column D is calculated by multiplying all the Direct Sales (sum of next 4 columns) times proportions given to us by TracFone. -Page Plus Air and Page Plus don't show up until 2014 so those columns are mostly empty. -The actual Billing Platform Sales and APP Direct Sales values that were given to us from TracFone are listed in columns U and V. -Columns U and V are read into columns D and H and reduced by the factors explained on the chart that is found in columns J through Z. Thanks Nicholas. Hope you have a great weekend. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Download all attachments as a zip file  ExcelPrelimRenton Tracfone.xls 612.5kB ExcelPrelim Federal Way Tracfone.xls 612kB Excel PrelimSpokane Tracfone.xls 205.5kB ExcelPrelimTukwila 7 Tracfone.xls 197kB ExcelPrelimBurien Tracfone Sched.xls 266kB ExcelPrelimKennewick Tracfone.xls 186kB  Methodology for each city Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Aug 4, 2017 at 1:10 PM Hi Nicholas, We sent you a sample methodology, but here is the methodology for each audit. Let us know if you have any questions. Thanks, Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Download all attachments as a zip file  Burien Methodology.doc 28.5kB Tukwila Methodology.doc 26kB Renton TracFone Methodology.doc 28.5kB Federal Way TracFone Methodology.doc 27kB Kennewick Methodology.doc 25.5kB Spokane Methodology.doc 25.5kB  Burien and Renton Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Wed, Aug 9, 2017 at 3:20 PM Hi Nicholas, We got word back that the City of Burien approved of their tax schedules that we sent to you, so the ones we sent to you are the Burien approved set. Concerning Renton, we are having the City look at some necessary improvements, due to their multiple annexation history, and we will send them to you as soon as they are approved. Hope all is well with you. Thanks Nicholas. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   Automatic reply: Burien and Renton Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Wed, Aug 9, 2017 at 3:21 PM I am out of the office beginning Thursday, August 10th and returning on Monday, August 14th.  I expect to have limited access to both e-mail and voicemail during this time.   If you need immediate assistance, please contact John Cavalieri, a Senior Manager in the Tax Department, at (305) 715-6578 or Scott Myott, a Senior Manager at (305) 715-6778. Renton Schedule Changes Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Aug 10, 2017 at 12:27 PM Hi Nicholas, We have been looking harder at the population proportion calculations for Renton, and something has come up with how they were calculated. It turns out that the population sizes for various years for Renton that we had been looking at online are not very correct at all. These online population figures show a very smooth, slight upward climb and then a bounce in 2010. But in fact, we know that the significant population bump for Renton occurred in 2008, when two large annexations were added. The Benson Hill annexation added 16,272 residents, and the Aqua Barn annexation added another 2,200 new residents that same year. This means that the most of the bump finally showing up during the census occurred two years earlier. It also means that the method we were using before underestimated the population of Renton, and therefore TracFone's Renton sales, during 2008 and 2009. So then we thought we should use only census years in our calculations, using 2010 as approximate for years of and after the annexations, and the 2000 census previous to that. But we ran into problems for this city with this approach as well. First, one of the Renton zip codes in 2000 was skipped in the census, or was inadvertently added to another zip in Renton which was way too large in 2000 compared to 2010. Second, unlike other cities, Renton experienced a myriad of annexations, small and large, during the audit period, making it hard to guess what their city population should be at each year. Finally, we brought the difficulty to Renton for their assistance, and they found Renton's own population estimates published in their Comprehensive Annual Report. These population estimates properly took into consideration the effect of the annexations. Then we were able to locate a website that actually estimates the zip populations for each year of the audit, rather than just at the census years. These estimates must have been done independently from the census counts, as they are close but not right on target with them, but there are no obvious errors that we see. The beauty of this method is that for the zips it uses a good source that estimates zip data for each year of the audit, and for the city population it uses Renton's own population counts for each year. Therefore, for this city, with its multiple annexations, we were able to come up with a fairly reliable unique population ratio for each year of the audit. We believe that this is a much more accurate approach to the estimation of Renton's population ratio, and we hope it meets with your approval. We have attached the improved Renton schedules and methodology. Let us know if you have any questions. Thanks, Tamara This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  Download all attachments as a zip file  Renton TracFone3Methodology.doc 28.5kB ExcelPrelim3Renton Tracfone.xls 612.5kB  Tax Schedules Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Aug 25, 2017 at 1:55 PM Hi Nicholas, Hope you are doing well. Just checking to see how things are coming along with your review of the methodolgy and the tax schedules that we sent you.  Let us know if you have any questions. Thanks Nicholas. Have a great weekend. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  TracFone Tax audits Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Aug 31, 2017 at 2:07 PM Hi Nicholas, Hope you are doing well. It has been several weeks, and we have not heard from you concerning any questions that you might have concerning our methodology and our tax schedules. We want to make sure that you understand how we came up with our estimates and any concerns. The cities would like to move forward to complete these audits. So, unless we hear from you by Tuesday, we will go ahead and move forward with the audits. Nicholas, we have been working on these audits for a long time and I would like to thank you for all of your help with this audit and with the information that you provided to us. Have a great day. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    RE: TracFone Tax audits Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Tue, Sep 5, 2017 at 2:29 PM Mike: We have major disagreements with the draft audit schedules that go well beyond your estimating methodology. Moreover, we have repeatedly requested the opportunity to meet with you to discuss these matters in person. We think it would be inappropriate for you to proceed without meeting with us to discuss our legal and factual concerns. We do not believe your clients need to be present at the meeting, but anticipate that our discussion will also assist you in representing our clients and communicating with them as appropriate. Consequently, we will be traveling to the meeting location as indicated below. We look forward to meeting you there, and are awaiting confirmation of your planned attendance. Date: Monday, September 18, 2017 Time: 2pm—5pm Location: 1420 Fifth Avenue, Suite 4200 | Seattle, WA 98111-9402 Regards, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Thursday, August 31, 2017 5:07 PM To: Nicholas Ford Subject: TracFone Tax audits Hi Nicholas, Hope you are doing well. It has been several weeks, and we have not heard from you concerning any questions that you might have concerning our methodology and our tax schedules. We want to make sure that you understand how we came up with our estimates and any concerns. The cities would like to move forward to complete these audits. So, unless we hear from you by Tuesday, we will go ahead and move forward with the audits. Nicholas, we have been working on these audits for a long time and I would like to thank you for all of your help with this audit and with the information that you provided to us. Have a great day. Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.   TracFone Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Thu, Sep 7, 2017 at 4:44 PM Hi Nicholas, Thanks for your email and your concerns. Being an representative for the cities for this audit, TRS is responsible for carrying out the instructions that are given to us concerning these audits. The City of Spokane has told us that they will be reviewing the situation with their legal department and will get back with us. In addition, they have told us that they do not want TRS to meet with your legal representative. We are still in the process of contacting the other cities, however, it is the policy of TRS not to meet with taxpayer's legal representatives without the legal representative of our client being present. As soon as we hear from the City of Spokane, we will then relay the message to you on how they want to proceed with the audit, or they will contact you directly. At this point, unless we hear from you about any concerns or questions on the methodology or the tax schedules, we would have to assume that the real issue is whether or not some or none of your business activity in these cities are taxable. This would then make the audit about legal issues instead of how TRS came up with the estimated tax. Once again, if you do have questions or concerns on how we came up with the methodology or the tax schedules, we are more than happy to review them with you by email or by telephone. Thanks Nicholas.  Stay safe this weekend. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Tuesday, September 5, 2017 2:29 PM Subject: RE: TracFone Tax audits Mike: We have major disagreements with the draft audit schedules that go well beyond your estimating methodology.  Moreover, we have repeatedly requested the opportunity to meet with you to discuss these matters in person.  We think it would be inappropriate for you to proceed without meeting with us to discuss our legal and factual concerns.  We do not believe your clients need to be present at the meeting, but anticipate that our discussion will also assist you in representing our clients and communicating with them as appropriate.  Consequently, we will be traveling to the meeting location as indicated below.   We look forward to meeting you there, and are awaiting confirmation of your planned attendance.  Date:  Monday, September 18, 2017 Time:  2pm—5pm Location:  1420 Fifth Avenue, Suite 4200 | Seattle, WA 98111-9402 Regards, Nicholas E. Ford | Corporate Tax  | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 |  nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above.  From: TRS [mailto:crisp@trs-integrity.com] Sent: Thursday, August 31, 2017 5:07 PM To: Nicholas Ford Subject: TracFone Tax audits Hi Nicholas,   Hope you are doing well.   It has been several weeks, and we have not heard from you concerning any questions that you might have concerning our methodology and our tax schedules.  We want to make sure that you understand how we came up with our estimates and any concerns.  The cities would like to move forward to complete the se audits.  So, unless we hear from you by Tuesday, we will go ahead and move forward with the audit s.   Nicholas, we have been working on these audits for a long time and I would like to thank you for all of your help with this audit and with the information that you provided to us. Have a great day. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.    RE: Statute of Limitations waiver form - City of Kennewick Inbox  Nicholas Ford <nford@tracfone.com> To:TRS Fri, Sep 22, 2017 at 2:39 PM Hi Mike – we were looking through our records and noticed that we do not have a current copy of your (TRS) engagement contract with Kennewick. Can you e-mail us the current contract at your earliest convenience? Also, we’ve noted the policy of TRS (per your 9/7/17 e-mail) not to meet with taxpayer’s legal representatives without the legal representative(s) of your client being present. However, we propose that you meet with just TracFone (and without counsel of either party) in order for us to go through and discuss your methodology and preliminary estimates/schedules. We are planning to meeting with you as follows: Date: Wednesday, October 11, 2017 Time: 2pm—5pm Location: TBD – e.g. Seattle or Tacoma Regards, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, September 11, 2017 5:08 PM To: Nicholas Ford Subject: Statute of Limitations waiver form - City of Kennewick Hi Nicholas, Hope things are going well after the storm and that things will get back to normal as soon as possible. I hope you did not get hit too hard. We were reviewing our records, and we see that the Statute of Limitations will end for the City of Kennewick on September 30, 2017. I have attached a copy of the waiver form for your signature. We will need it signed by September 22, 2017. Let us know if you have any questions. Thanks Nicholas Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Re: Statute of Limitations waiver form and tax estimate - City of Kennewick Sent  TRS <crisp@trs-integrity.com> To:Nicholas Ford Fri, Sep 22, 2017 at 5:15 PM Hi Nicholas, Thanks for getting back with us. We have attached the current contract and the most recent extension with this email. We will also need the waiver for Kennewick as soon as possible because of the due date. Could you have it to us by Tuesday? We would need to send out a tax assessment, as is, if we do not get it in time. And it is our goal to go over any questions or concerns that you have with the estimate. We will also consider your idea of a face-to-face meeting, however, we still believe that telephone and email are more effective ways to address these kinds of issues because they allow for pause to look up information and to do research, allowing for replying in a more well-thought-out way. We really believe we can get all of your questions answered and consider all of your objections without a face to face. That said, we will give the idea some thought and see how it could be managed. Hope you have a great weekend. Thanks Nicholas. Mike   This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it.  From: Nicholas Ford <nford@tracfone.com> To: TRS <crisp@trs-integrity.com> Sent: Friday, September 22, 2017 2:39 PM Subject: RE: Statute of Limitations waiver form - City of Kennewick Hi Mike – we were looking through our records and noticed that we do not have a current copy of your (TRS) engagement contract with Kennewick. Can you e-mail us the current contract at your earliest convenience? Also, we’ve noted the policy of TRS (per your 9/7/17 e-mail) not to meet with taxpayer’s legal representatives without the legal representative(s) of your client being present. However, we propose that you meet with just TracFone (and without counsel of either party) in order for us to go through and discuss your methodology and preliminary estimates/schedules. We are planning to meeting with you as follows: Date: Wednesday, October 11, 2017 Time: 2pm—5pm Location: TBD – e.g. Seattle or Tacoma Regards, Nicholas E. Ford | Corporate Tax | TracFone Wireless, Inc. | O: 305.715.6500 extn. 3217 | nford@TracFone.com _______________________________________________________________ This Email contains PRIVILEGED AND CONFIDENTIAL, PROPRIETARY INFORMATION intended only for the use of the Addressee(s) named above. From: TRS [mailto:crisp@trs-integrity.com] Sent: Monday, September 11, 2017 5:08 PM To: Nicholas Ford Subject: Statute of Limitations waiver form - City of Kennewick   Hi Nicholas,   Hope things are going well after the storm and that things will get back to normal as soon as possible. I hope you did not get hit too hard.   We were reviewing our records, and we see that the Statute of Limitations will end for the City of Kennewick on September 30, 2017.  I have attached a copy of the waiver form for your signature.  We will need it signed by September 22, 2017.   Let us know if you have any questions. Thanks Nicholas Mike This email and any files attached to it are the property of Tax Recovery Services, LLC. The contents may be confidential and proprietary, and any use or distribution of the information contained herein may be prohibited by law. If you are not a named recipient, or if you have received this email in error, please notify the person who sent it, and immediately delete it. Download all attachments as a zip file  Kennewick Contract with TRS0001.pdf 259.3kB Kennewick Amend#6.pdf