OTC Email 8

8/6/2019 OTC Email 8

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Charles J. RobertsonFrom:Sent:To:Subject:

Mike KaufmannWednesday, February 17, 20102:53 PMCharles J, RobertsonFW: LR07-167

Follow Up Flag: Follow upFlag status: RedAttachments: LR07-167.pdf

Michae] KaufmannTax P olic y AnalystOklahoma Tux CommissionP hon e: (4 05) 52 I -3 133emai I: mkaulinann(f.ytax.ok.govPf..F A S E N OT E: T he m aterials inclu ded in (his transm lssio m ay contain P J ' 1v ileged and confidential inform ation from the f i l e s anthe O klahom a Tax Com m ission. If yo u are not the recip ient nam ed, b e aw are that u nau thoriz ed dissemination, disclosure, copying,informatlon obtained from th e fifes of the O klahom a Tax C om m ission is strictly prohib ited and sub ject to b ot h c iv il find c rim i na l punder s r n r e and fede ra l laws, If y ou h av e re ce iv ed th is m es sa ge in error, please notify the A gency Inuncdiate ly at the telephone Huabov e. A rrangem ents w ill he m ade 1'0)' its retriev al. T ha nk y ou .

From: Pa tr ic ia McDonald.Sent: Wednesday, February 17;20102:52 PMTo: M ike KaufmannSubject: LR07-167

02/25/10


2/27

C h a r l e s J . R o b e r t s o nFrom:Sent:To:Subject:

Mike KaufmannWednesday, February 17,20102:53 PMCharles J. RobertsonFW: LR07k144

Follow Up Flag: Follow upFlag Status: RedAttachments: LR07~144.pdf

M ich ael K au fm annT ax P olic y A na lys tO kla homa Tax Con un is sio nP ho ne : (4 05 ) 5 21 -3 13 3email: [email protected] L[A Sr:~ N OT E: T he m ateria ls included in this tra nsmis sio n m ay c on ta in p riv ile ge d a nd c on fid en tia l in fo rm a tio n from th e J ile s athe O klahom a T ax C omm issiou , lf you lire not the recip ient nam ed . b e aw are that u nau thoriz ed d issem ination, d isclosu re, cop yingiuformution obta ined Irom the files o t'rhe O kla hom a Ta x C ommission is stric tly prohib ite d and subject to both civ il an d crim in alunder Slate an d federal raws, If y ou h av e re ce iv ed til is m ess ag e in e rro r, p le ase n otify th e A ge nc y imm ed ia te ly ~1 1h e te le ph on e n uabove, Arrangem ents will be m ade fbI' Its retrieval. Thank you,

From: Patricia McDonald......Serit:WedriesdaY;februaryi7;20ioi:5ip~fTo: Mjke KaufmannSubject: LR07~144

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mailto:[email protected]:[email protected]


3/27

Charles J.RobertsonFrom:Sent:To:Subject:

Mike KaufmannWednesday, February 17,20102:53 PMCharles J. RobertsonFW: lR08-043

Follow Up Flag: Follow upFlag Status; RedAttachments: LR08-043.pdf

M ic hae l K a uf ma nnT ax P olic y A na ly stO kla homa T ux C omm is sio nPhone: (405) 521-3133email: mkl. luf [email protected] NOTE: T he m aterials inclu ded in Ihis trans m is sio n m ay con tain p riv ileg ed an d con fid ential in fo rm ation 1 ' 1 ' 0 1 1 1 th e files ath e Oklahoma Tax C om m ission. Ifyou arc no t the recip ient nam ed , b e aw are thar unauthorized d is sem in atio n, d is clo su re , c op yin gi nf orm at io n obt ain ed rl'0111 the nics of the Oklahoma T ax C om m isslon is strictly prohibited and su bject to both civi l Hnd c rim in alu nder state and federal raw s. If you hav e receiv ed this m essage in errol', please n otif y th e A ge nc y imm e dia te ly al t he t el ephone n uabove. Arrangem ents w ill be m ade 1'01' it s r etr ie va l. T hank YOLJ ,

. Fr0ltl: Patricia McDpnalg ' ' .

...Senti W e d n e s d a y , F e b r u a r y 17, 20102:51 PMTo : M ike K aufm annSubject: LR08-043

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mailto:[email protected]:[email protected]


4/27

PagCharles J. RobertsonFrom: Monty BivensSent: Tuesday, January 26,20102:03 PMTo: Tony Mastincc: Larry Wilson; James Fourcade; Charles J, RobertsonSubject: RE: Capitol Companies

Tony, please see below.Will get the correspondence over to yo u on the companies you've listed. - mb

From: Tony MastinSent: Tuesday, January 26, 2010 8:36 AMTo : M on ty Biven sSubject:I have reviewed the responses from the capital companies regarding their 2007 investments. Howeverfound no response from:

Letter from law firm C I dated 1 /15 /10 ) asking for more time. Wassume that it applies to the other two affiliated companies.

Letter from CPA ( ).i,

Please check and see if they have responded and get me those responses. Also, thestated they were sending additional information. Did that come in?.. Tony Mastin .Administrator

) 2 / 2 5 / J 0


5/27

Pa

C h a r l e s J . R o b e r t s o nFrom: Monty BivensSent: Tuesday, January 26, 2010 10:48 AM10: Charles J, RobertsonSubject: FW:

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From: Tony Mastinsent: Tuesday, January 26, 2010 8:36 A MTo: Monty BivensSubject~I have reviewed the responses from the capital companies regarding their 2007 investments. Howevefound no response from:

Please check and see jf they have responded and get me those responses. Also, thestated they were sending additional information. Did that come in?Tony MastinAdministrator

02/25/10


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ITI-C P. O. Box 269054Oklahoma City, OK 73126-9054

November 17, 2009CompanyAddressCity, State, Zip

FE!: FEI # xxx-xx-1234File#: 526/527 SurveyFYE: 12/31/2007

Dear Managing Member:The SmaUBusiness CapItal Formation Act and The Rural Small Business CapitalFormation Act require the Oklahoma Tax Commission to report oertaln information tothe Speaker of the House of Representatives and the President Pro Tempore of theSenate (680,8. 2357.65 and 2357.76). Pleaseprovidejl1sfoIIOWiOgJnformationwith...respeotto'eachqualitiedln"estrnentinanOklahoh1a smaflbUsinessv e n t u r e or r u r a ismall business ventureduring 2007 so we can verify the investments were made andreport the required information to the applicable legislators.Responses to requests 1 through 3 should be received In our office no later than....December 15, 2009. Thedooumentation requests contained lrrrequ (;)sts'4lhroUghlOshould be received no later than January 15,2010.

"1 . provide a list of the name, FEI, address and an individual contact for eachOklahoma small business or rural small business that received a qualifiedinvestment i n 2007.2. Provide a detailed explanation of all expenditures made by the Oklahoma smallbusiness or rural small business within 18 months after the date of the qualifyinginvestment, at least 50% of the proceeds of the qualified investment for theacquisition of tangible or intangible assets (as defined in the applicable Statute)which are used in the aotlvs conduct of the trade or business.3. Provide information as to the number of Oklahoma jobs created by the Oklahoma

small business or rural small business since the date of the qualified investmentby the qualified small business capital company or qualified rural small businesscapital company.4. Contemporaneous documentation that shows the .quallt ied investment(s} weremade on or before December 311 2007.


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5. Contemporaneous docum entation that shows the Oklahom a small business orrura l sm all business issued its equ ity securltles or subordinated deb t in strumentsIn exchange fo r a qualified investm ent w ith in 30 days o f th e date as of which thein ve stment(s ) o cc urre d.

6 . Oontem poraneous docum entation that shows the qualified sm all business capita lcom pany or qualified ru ra l sm all bus iness capita l com pany or any en tity m akinga n in ve stm en t in co nju nctio n with an in ve stment by a q ua lifie d sm all b usin esscapita l com pany has reflec ted the docum ented qua lified investm ent In theO klahom a sm all bus iness or rura l sm all business as an asse t in Its accountingsystem.7. Docum entation that shows the qualified sm all business capita l com pany orqualified rura l sm all busIness capita l com pany did not m ake a qualifiedinvestm ent in an Oklahoma small bus iness or rura l sm all business in which it

had, a t any time, m ore than 50% ownership, whether d irectly or m dlreotly, of thevoting interest.8. Docum entation that shows the Oklahoma small business or rura l sm all bu sinesshad, wIth in 180 days afte r the investment was made by a qua lified smallbusiness or rura l sm all business oapita l com pany, a t least 50% of its em ployeesor assets located in O kla hom a,...9~'D6CUmentati6hthatsh6wsthebklahomasmallbusjt1~$$()r~~~~I~~~

is engaged in a lawfu l business activ ity under any Industry Number a pp ea rin gunder any M ajor G roup N um ber of D ivis ions A, 0, 0, E, F or I o f the StandardIn dustria l C lassification M anu al, 19 87 revis io n w ith the fo llow in g exceptions;a. Major Group 1 of D ivis io n A ] l.Od ., ", , _, _" _ _ _ . . ,, ,. _, _ _ , _ . ' _ _' _ _ '_ _ ' _' _' _" _ "_ '_ " ' _ _ _ __ o '_ ._ _, _ , _ _ , _, _ _ _ ,_ _ ,, ,, _ __ , _ ' _, -- -- ,- -- ,. ,,b. Major Group 2 of D ivis ion A .10. Docum enta tion that shows the O klahom a sm all business or rura l sm all businessqualltlss as a small business as defln$d by the federa l Small BusinessAdminist rat ion.

OK LAHOMA TAX COMM ISSIO N

Mon ty B ive nsD ire cto r, C om plia nce D ivis io nOK LAHOMA TAX COMMISSIONPO Box 269054O klahom a City, O K 73126~9 054PH: (405) 52 1-432 7


8/27

Pa

Charles J. RobertsonFrom: Monty BivensSent: Thursday, December 31,200910:40 AMTo: Charles J. RobertsonSubject: FW: Capltal Companles

From: Tony MastinSent: Thu rs daY t Decembe r 31, 2009 10:39 AMTo: M onty BivensSubject: RE: CapItal CompaniesI want to review the data. We can talk about having a meeting later. Please have them send me theresponses.Tony MastinAdministrator" _ ~_ ._ ~ _ __ L. c .. '. , ~~ ~ __ " ....,_,' ~,~_~ __ -._ _~ .,...' . ," ,_'r"" , _........,_" __ ._ _.,......_----. ~ "" ,.. ,' ~" ,~ . > . . _. , _ . ~ _ . . ~, _ M __ ._ __ ~ __ _ ,.. ~ _...,_~

From: Monty BivensSent: Thursday, December 31,200910:34 AMTo:TonyMastin;. LanyYJilson ............................................................................................J.Rob6rtsoniJames FourcadeSubject: CapitalCompaniesTony,Charlie & , w O U l d . makelik~ toh~ve a~othertneeting~ithyc:>LJ~I.()LP9WDtQJ~yi?wtDJe$PQD.$.e.$.jhe appJicable statutory

.'definitions,anddecldehOW WeWanl toproceea:Maybe we could also discuss the 2006 rural sm all business credit forw here the affected taxpayer provided an unsigned copy of the 526 form that should have been filedcapital company, but we have no record of receiving it (reference Charlie's ernails dated 11 /30 / 2009 and 12/22/2009).

. .. , .. " - "" " " ....." .

Thanks,MontyFrom: Charles J , Robertsonsent: Thursday, December 31, 2009 10;28 AMTo: Monty BivensSubject: RE:Monty,We sent out 14 le tte rs a nd have received responses from 12 capi ta l companies.There were a total of 33 Oklahoma small bus in es se s in ve ste d in per the 526 and 5275 filed for 2007 and we received lnfo'o r 24 of them.Ihe responses we received are very diverse in the amou nt of detail and/or support provided $0 it is difficult to evaluate wh:he expenditure requirements have been met. That being said, it is clear that some of the expenditures do not qualify andhe investments should no t qualify for the applicable credit.Ihe employee information we received is also difficult to compare and summarize - how far do we go in counting Indirectvhere another company provides the small business with its employees or there are construction phase jobs involved?02 /25 /10


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A lso , to w hat ex ten t do w e tr y to v erify th e in fo rm atio n th at h as b ee n provided to u s?C h arlie R o be rts on , CPAOkla hom a T ax C omm is sio nP O Box 269 054Ok lahoma City, OK 731 26 -9 0 54(405) 521-6286(405) 522-5990 FaxFrom : M onty B ivensS en t: T hu rs da y, December 31,20099:17 AMTo: Charles J. RobertsonSubject: FW :

F rom : T on y M a stinSent: T hu rs da y, D ec em be r 31120098:32 AMT o: La rry W ils on i M on ty B iv en sCc: Dawn CashSubject:I haven't heard anything. Where are we on replies to our questions to capital companies?Tony MastinAdministrator

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10/27

PCharles J.RobertsonFrom: Monty B iv en sSont: Thursday, December 31, 2009 10:34 AMTo: Tony Mast in ; L ar ry WilsonCc: Dawn Cash ; C har le s J. Robertson; James FourcadeSubject: Capita l C ompan ie s

Tony,Charlie & I w ould m ake like to ha ve anothe r m eeting w ith you &/or D aw n to re view the resp onses, the ap plicab le statutodefinit ions, and dec ide how we want to proceed. M aybe we could a lso discuss th e 2 00 6 rural small b us in es s c re dit fo r". where the a ffec ted taxpayer prov ided an uns igned copy o f the 526 form that should have been filedc ap ita l co mp an y, b ut w e h av e n o re co rd o f re ce iv in g it (re fe re nc e C ha rlie 's e ma lls d ate d 11 /3 0 / 2 0 09 and 12 / 2 2 / 2 0 09 ) .Thanks,MontyFrom: Charles J. RobertsonSent: Thursday, December 31,200910:28 AMTo: M onty BivensSubject: RE:Monty,. ' ! Y ~ . .~ . e . n . t . ? ~ . ~.1.~..:! t(;)~~~f' l9,~ClIJ~~~9~jy~~~~~pgn~


11/27

Subject:I haven't heard anything. Where are we on replies to our questions to capital companies?Tony MastinAdministrator

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12/27

Charles J. RobertsonFrom: Monty BivensSent: Thursday, December 31, 20099:41 AMTo: Tony Mastin ; Larry W ilsonCc: Dawn Cash; Charles J. RobertsonSubject: RE:

Tony, OU f re s pon se s a re in c on sis te n t as far as what m ight be qualified in ve stm en ts , h ow emplo ye es a re c ou nte d, etprovide m e a sum mary th is morning whic h I'll fo rw ard . -rn b

From: T on y M as tinSent: T hu rs da y, D ec em ber 311 2009 8:32 AMTo: L arry W ils on ; M on ty BivensCc: Dawn CashSubject:I haven't heard anything. Where are we on replies to our questions to capital companies?Tony MastinAdministrator

0 2 / 2 5 1 1 0


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Charles J. Robertson,.


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Charles J. RobertsonFrom : Monty B ivensSent: Friday, December 04,20099 :42 AMTo: larry W ilsonCc; Charles J. R ob ertso n; Ja me s F ou rca de ; D avid Is le ySubject: RE : C ap . C re dit S urv ey L ette rs

Sorry. Should be NO. - mb

from : Larrv W ilsonS en t: F rid ay, December 04/20098:48 AMTo: Monty B iv en sSubject~ RE: Cap.C red it S ur ve y Letterstwo or to? La rry

From : M onty B ivenssent: Thu rs da y, De cembe r 03r 2009 3:26 PMTo: Larry WilsonC c: C ha rle s J. Robertson; James Fourcade; David Is le ySubject: cap. Cred it Su rvey Letters

C harlie says that w e ha ve rece ived to w ritten responses to our surve y le tter, and th is is not surpris ing s ince w e do n ore sp on se s u ntil th e end o f t he d ead lin es .B ut w hat is surp ris ing Is that w e have receive d no req uests for extens ion of t he dead li nes .Monty


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Charles J. RobertsonFrom: Monty B iv en sSent: Thursday, D ecem ber 03,2009 3:26 PMTo: L ar ry W i ls o nCc: Charles J. R ob erts on ; Jame s F ou rc ad e; D av id ls le ySubject: C ap . C re dit S urv ey L ette rs

Larry,C harlie says tha t we have rece ived to w ritten responses to our survey te tte r, and this is not surpris ing since w e do nre spo nse s u ntil th e en d o f the d ead lin es.B ut w ha t is surpris in g is tha t w e ha ve re ceive d no re qu ests fo r e xte nsio n of th e d ead lin es.Monty

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Charles J. RobertsonFrom : Monty B ivensSent: Friday, November 13,20094:12 PMTo: Charles J. RobertsonCc: David Isley; James FourcadeSubject: FW: CapCo Survey Letter.doc

Charlie, please proceed with having the letters prepared. Thanks, mb

From: Tony MastinSent: Friday, November 13, 2009 4:04 PMTo: Monty BivensCc: Dawn Cash; Larry W ils on ; D av id Is le y; C ha rle s J. R ob ertson ; Jam es F ou rca de; S ha ro n F an nin gSubject: RE: Capeo Su rvey Le tt er .docPlease send them out as soon as possible. Thanks.Tony MastinAdmin istrator

From : Monty BivensS ent:P rlda YiN ovemb ei'13 ;"2 009 '3 :S 0ljMTo: Tony MastinC c: Dawn Cash; Larry Wilson; Dav id Is le y; C ha rle s J, R ob ertson ; Jam es F ou rca de: S ha ron F ann in gSubject: Capee Survey Letter.doc

-_~-'_"~""~'''''''''I'~'''''~l''''''''''''''''''''''''''''''_~~~ '''''''''''''''''''~ , _ ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, _ I . .~ ~ . _ ~ _ . .. .. .. .. .. .. .. .. .. .. .. .._ . . _ ,_ , , ,, , ,, _ , ,, , ,, , ,, , ,, , ,, , ,, . . .. . .. . .. . .. ... ......,""""oV-h~__'__ ....;-.. ............................. __ .........._.-_-~,~~.....""""...,.............__...,_~ .From: Tony MastinSent: Thursday, November 12, 2009 5:13 PMTo: M onty Bivens; Dawn C ashSubject: Cap eo S urv ey L ette r.d ocPlease review and give me your thoughts on the changes that I made. Thanks.


17/27

Charles J. RobertsonFrom:Sent:To:

Tony MastinFriday. November 13, 20094:04 PMMonty B iv en s

Cc: Dawn Cash; Larry Wilson; David Isley; Charles J , Robe rt son ; James Fourcade; S ha ro n F an nin gSubject: RE; Capeo Survey Letter.doc

Please send them out as soon as possible. Thanks.Tony MastinAdministrator

From : M onty B ivensS ent: Friday( N ove mber 13, 2009 3:50 PMTo: Tony MastrnCc: D aw n C ash ; Larry W ilson; D avid Isley: Charles J. Robertson; J am e s F ou rc ad e; S ha ro n F an nIn gSubject: CapCo Survey l et te r. docTony, it looks good to all of us. M inor cosmetic changes are noted in red. - mb

From: Tony Mastin . .. . . . , S e i i f : T h u r s a a y ; 'N o v e m 6 e r I i ; : 2 6 6 g s :i : f p M .To: M onty Bivens; D aw n C ashSubject: cepco Survey l et te r .docPlease review and give me your thoughts on the changes that I made, Thanks.


18/27

Charles J. RobertsonFrom:sent:To:co:Subject:

Monty B iv en sFriday, Novem ber 13, 2009 3:50 PMTony Mast inD aw n C as h; L arry W ils on ; D av id Is le y; C ha rle s J. R ob erts on ; Jame s F ou rc ad e; S ha ro n F an nin gCapCo Survey Letter.dooAttachments: Capeo Survey Letter.doc

Tony , it looks good to a ll o f us. M inor cosm etic changes are noted in red, - m b

From: T on y M a stinSent: T hu rs da y, N o vem be r 12, 2009 5: 13 PMTo~Monty Bivens: D aw n C ashSubject: Capeo Su rv ey L e tt er .d o cPlease review and give me your thoughts on the changes that I made. Thanks.

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19/27

ITI-C P. O. Box 269054Oklahoma City, OK 73126-9054

N o v e f f i b e r ??I2009. . . , - - : -< . . . : .CompanyAddressCity, State, Zip

. " : F , ~ ; ; i ~ } : F E I xxx-xx-1234(i~}I~#:~5 'g91527 SurveyFYE: 12 /$ '112007Dear Managing Member:

'. ,; , mal l Business Capitalreport certain information to. id en t Pro Tempore of the

i.\'thj~rr~II('1 ~IItninformatlon.withess venture or rural" . .estrnents were made and

..,.,..Re$PQnsestoJeq""-;"Ii{"~ i : ' " ' " , . .~I"'""""H;December 15~ ,. 'should be received ..."NI"'it"..QUlQl)',e:-riBCHV~U inouroff iceno later than ',

contained in requests 4 through 10. O .1 , g f . 9 V i d e a ' i i ~ t ' . : 9 t J h e ' : ' : - FE I, a ddre ss and an individual contact for each, : ;\Oklahoma s r ri " a U / b . ! J s n e s s - o r rural small business that received a qualified,:jovestment in 2 0 0 7 ; " :2. P~()y',igea detailed\~~pla '. of all expenditures made by the Oklahoma smallbusin~~~or rural srrf~il business with in 18months after the date of the qualifyinginvestment, at l e < ; 1 . ~ l 1 $ b % of the proceeds of the qualified investment for theacquisition:';Of. t ~ . n : 9 ' 1 . b i e or intangible assets (as defined in the applicable Statute)which are u s e ~ t ~ : l n 'he active conduct of the trade or business.3, Provide information as to the number of Oklahoma jobs created by the Oklahomsmall business or rural small business since the date of the qualified investmenby the qualified small business capital company or qualified rural small businesscapital company.4. Contemporaneous documentation that shows the qualified investment(s) weremade on or before December 31) 2007.


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5. Contemporaneous documentation that shows the O klahom a small business orrural small business issued its equity securities or subordinated debt instrumentsin exchange for a qualified investment within 30 days of the date as of which theinvestment(s) occurred.

6. Contemporaneous documentation that shows the qualified small business capitacompany or qualified rural small business capital company or any entity makingan investment in conjunction with an investment by a qy~J.lfi~dsmall businesscapital company has reflected the documented qualifj~tWhvestment in theOklahoma small business o r rura l small business q, ("" .'sset in its accountingsystem, " ' < _ ' : : ' : : : , ' " " ~ J ' 2 ; ) " ' , ,

7. Documentation that shows th e qualified smaJJ.pl1'lhess ca'~!~fl!ompany orqualified rural small business capital comp~,hy/did not make':~!g9alifiedinvestment in an Oklahoma smal l busjne.st~Mjrrural small busidi$$$.. jn which ithad, at any t ime, more than 50% Qwn,t;: irg'ti tp,whether directly or 'j'iil~lt~ctly, of thevoting interest. ' : ' : : : ~ \ ( I ( ~ ~ , ; , , ~ ) [ j \ \ , > . t ; ; i 1 1 ? : :

8. Documentat ion that shows the Ok lahoma ':;$Q;H~~JL '\ tqs inessr rural smal l businesshad, within 180 days after t~~~dnyestment w a ~ J i f . n a d eby a qualified smallbusiness or rural small busiri~~s):;~f.!p~i~,alompan'y.J;::~tleast 50% of its employeesor assets 1 0 , cated.in.O klahom~a'''i%.;;{:;l ''~\ ';:. ; ' . ; , ; . " ',~,> .:,."::,::".:.;'~.'.: . ":. ' . ':. '.' . " , " ,~II.::~,~~,-"". ':~}:i~.''I'::';\'.Ii--''-'''-'" "--'--'_--'-,.::.'~:~-'".' ." ..... .~ t :: ~ ~ h ,~ . :. . , ; \ : : H ~ i n ~ # { ~ I . " ~ - - < . : : \ : . : . : , : '9. Documentation th at s hows the ~~~tahoITi'~}}~:ij,IjJ)usinf?,$sor rural small businessis engaged in a I~WfYJ,~:RM~inessgt!yitY(tqtrde'r~:lK~,~:l09u'stryumber appearingunder any MaJqriJ~hjup~"Nl,Hnberof\:OUvJ$' tonsA, C:'~~'[~f,, F or I of the StandardIndustrial C!~,~s.lfication rvtahual, 198(r~visjon with the f ollow ing except ions:, _ _ __c_ , _ ' .. _ _ '_, ~ _. : ~ " : __ , : _ ,_ '_. : _, " ' __ , ~ .. , , __ "_ ~_ , _ _"_ _, __ " " _' .. _ " ,- _< c ; ' ; : ': : ~"c_ ,_ _"_ c_ '_ ' ' _' _ " _" _" _" , - - - . .- , - - - i , ~ i \ ; ; 1 : : : , _ __ _ _ _ _ " - _ ' _ ' _ ' . _ ' _ '' _ ' _. _ , " ' _ " , , " . _ ,_ "_ ' _ "_ . . ' - - , _ " _ . __ _ . .' . ., " _ ' , _ _ . _ " . _ " __ _ - _ " . _ . _ , _ . ~ ._- - '. _ '_ " , . _ , - - '- - '. .' ._ ' "_ "_ . , _ . -, c_ _ _. _ ' _. _, . ' .. ' _. ' ' - _ , . '

. . a . Majo(Group 1of Q,ivision A, an : W : ; ,b.. Major c i h ? 9 B ~ : : 9 . t / D l V l S : i Q h . / ~ \ ~ ; : >, : ~ { ~ ~ ~ ; ; , ( "1O.DQCtirni}.htption t h a : { ; , : s . h 6 w s th e 6 i d ~ h b f u a s m a l lbusiness or rural small business, : , g : Q . : ~ ' i i f j ' e s " ~ ~ r K i ~ : ; : ; s . m . a I l 6 ' U s , j Q e s ss defined by th e federal Small Businessi ,~ ~ t ii n jn j s tr a ti o rlt ;~ ~ ~ . , . ,: .i '~ ' ' \ '' '~ ' : > ' ' '' :' '' '' '' 'i ., ., .' l ~ ~ \ ~ l : . ~ , , : . , : . : . : , . . . '; . 5 ; \ A \ - . .

OKLAH~~~t:TAX COM~l~~ION' ' \ ; ; j ~ ) i : t i j ; i ; , , ( f / J t ~ ' $" \ i } ~ " ( > : '

Monty BivensDirector, Compliance DivisionOKLAHOMA TAX COMMISSIONPO Box 269054Oklahoma City, OK 73126-9054PH: (405) 521~4327


21/27

Charles J. RobertsonFrom:Sent:To:Cc:Subject:

Monty BivensF rid ay , N ovem be r 1 3, 2009 9 :21 AMCharles J. Ro be rts on ; J ame s F ou rc ad eDavid Is leyFW: Capeo Su rvey Le tt er .doc

Attachments: Capeo Su rvey Le tt er .docP lease m ake any edits in red. Thanks, mb

From: Tony MastinSent: Thursday, November 12, 2009 5:13 PMTo: Mont y B iv en s; D aw n C ashsubject: Cap ea S urv ey Letter.docPlease review and g ive m e your thoughts on the changes tha t I m ade. Thanks.


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ITI-C P.O. Box 269054Oklahoma City, OK 73126-9054

October ??, 2009" . . '..

Dear Managing Member:

'.','~.":".:

CompanyAddressCity, State, Zip",-"

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The Smal l Business Capital Formation Act a "~'Ih~'ri"I'31J Business CapitalFormation Act require the Oklahoma Tax Com port certain information tothe Speaker of th e House of Rep , ' and resident Pro Tempore of th e,Benate.{68, ..O.s , 235,7 .65an Jtj';j~:,f" r,':tt5~\t:,:,"'!leaISe 0 In~DY1D,,"r..Ilr\I'Ulnglnformatfbr1Withrespect to each qualified investment' ~~."'IEh venture or ruralsmall business venture during 2007 riO'~,c-"tl'l'"\""nt~ were made andreport the required i the .........


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in exchange for a qualified investment within 30 days of the date as of which theinvestment(s) occurred.6. Contemporaneous documentation that shows the qualified small business capitacompany or qualified rural small business capital company or any entity makingan investment in conjunction with an investment by a qualified small businesscapital company has reflected the documented qualified investment in theOklahoma small business or rural small business as an asset in its accountingsystem.

7. Documentation that shows the qualified small busin~;~':apital company orqualified rural small business capital company didno:t


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PCharles J. Robertson ~------~---------'---'--'-'----"-"'~-'---"From:Sent:To:Subject:

Monty BivensThursday, October 29, 20091:20 PMCharles J. RobertsonFW: Venture Capital Tax Credi t Programs

Attachments: Venture Capital Tax Credit Programs.doc; VenCapAudDocs

From: Monty BivensS ent: Thursday, O ctober 29 , 2009 11:26 A MTo: Dawn CashC c: T on y Mastin; L arry W ils on ; D av id Is le y; J am e s Fourcade; 'Charles J Robertson 'S ubject: R E: V enture C apita l Tax Credi t ProgramsDawn,Audit documents 2 - 5 are guides for the auditor in the conduct of the audit & in preparing information r equ es ts . In fo rmarequest le tte rs a re p re pa re d w ith th e taxpayer 10 be fo re ma il in g to th e sp eclflc e nttty in question.W e did assess a lot m ore than $12K on the 2357.7 audit, but I on ly provided the f inal am ount after protest. I've changeda ns we r to re fle ct th at it is the fina l resu lt. S ince, the num ber of audits & reviews under t hi s ca tegory IS so sm all, I don 't khave any 205 problems with this a nswe r .

.....qLJfqpg~tipns.h!;ljpi:.lgm~.fttJcj$lJl ..~ddjtiQnG1.I.~Ua.c.hmenthat.Gharlie.proYided& .nave ..added.io .theD.ocsa ttachmenL. . Tup has been changed to reflect the num ber of attachments,Thanks,Monty

From : Dawn CashSent: Wednesday , October 28, 2009 8:40 PMTo: Monty BivensCc: Tony Mastinj Larry Wilsonj David Islev: J ame s F ou rc ad ei C ha rle s J RobertsonSubject: RE: Venture ca pita l T ax C re dit P ro gra msI recommend that, in the audit documents, we add FEIN/Taxpayer ID# to the list of required informthe small business venture receiving the investment. It just seems to me that FEIN can often be morthan even the business name when doing any additional research.And on audits of 2357.7 credits, I assume the one listed is the ease that went to p1999 or 200n ish. I mention it because, off the top of my head, it seems the amount in controversy wmore than $12,000. But it wasn't my case so I could be remembering wrong.From: Mon ty B iv en sSent: Wednesday , October 28,200911:07 AMTo: Tony MastinC c: larry W ilson; D aw n C ash; D avid Isley; Jam es Fourcade; C harles J. RobertsonSubject: Venture Cap ita l T ax C re dit Programs

0?1?'i/l0


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Tony,A ttached is a W ord docu ment w ith response s on the V enture C apita l q uestio ns. P ortions high lighted in ye llow ou r fob ac kg ro un d in fo rma tio n o n ly & p ro ba bly n ee d to b e d ele te d o r a me nd ed b efo re re le ase . Also, a tta ch ed is o ur documaud itin g th e se p ro gr ams .Please let m e know of a ny needed revisions.Thanks,Monty

(\')/') C /11\


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Questions regarding Capital Company Tax Credit Programs:Would you please provide the following information with regard to all of theventure capital tax credit programs (68 O.S. Section 2357.7 and the SmallBusiness Capital Formation Incentive Act and the Rural Venture CapitalFormation Incentive Act), collectively "credit programs":1. Any written policy or procedure provided to or used by employees of the TaxCommission which relates to the adminlstrafion or enforcement of the creditprograms (exclusive of any administrative rule);T he C om p liance D iv ision u tiliz es the fo llow ing p roced ure w hen v erifying cred its claim e don su sp end ed retu rns w ith resp ect to the referenced cred it p rogram s : T he ind iv id ualam e nd ed section or corp orate section audi tor t ha t is a ss ig ne d t he s u sp end ed return witht he c laim e d c re dits fills ou t a Reques t for A pp rov al form ( se e a tt ac hmen t 1). This form isrou ted to a S up erv isor w ho has cu stod y of the inform a tional retu rns f iled to estab lish thecredi ts (Forms 518~526, & 527). The S up erv is or com p ares th e claimed credins) w ith theinformational re tu rns filed and, if all is inorder, ap prov es the credius) claim ed . If theinformational re turns are m issing or d on't reconcile w ith the taxp ayer d ocu m ents for thecred itrs) claim ed . the crcd it(s ) claim ed are denied . This is orallcom municated to each aud itor as of their trai .

;. :' ~.:::.~~.:::; ' _ : , ' , ' . : : : ~ ' .;'. .

Wh en p erform ing field au dits of th e en tities g enerating the cred iu s), th e Compl ianceDivision follows the procedures d eta ile d in th e D iv is io n's CO l'Q o ra te S ect io n P ro ce du re s. .. .. .. M uHy .@ h~Foadd r es s t1 1e tlll iq u e as pec ts andqu aJ if ic at iO l neq_u l l'cmen ts ;t J re p ro cedu re s . .m a nu al has b een su pp lem ented by t ax c re dit q u alif ic at ion summar i e s and a m odelinform a tion d ocu m en t req uest to aid au ditor,') in co nd uctin g these au dits o f cred itprograms (see a t tachments 2-5).2. The number of auditors currently assigned to work on the credit programs witha breakdown of the number of auditors assigned respectively to the Section2357.7 credit, the Small Business Capital Formation Incentive credit(s) and theRural Venture Capital Formation Incentive Act credit(s);C u rrently, no au ditors are exclu siv ely ass igned to the tax cred it programs. A CPAsu perv isor and one of the C PA 's perform m ost of the aud it rev iew s of cred its , andco lla bo ra te o n f ield au dits related to these cred its . F ield au dits inv olv e exam ination ofho ok s and records of the ent it ie s i nvo lved in th es e p ro gram s ; alth ou gh, th es e d ocu m entsm ay be exchanged electronically or by m ail. A udit rev iew s inv olv e exam ination o fen titie s' in fo rm a tio na l r etu rn s, and documents . A"I;'!I' .i">"'I~1"I,;-"'''..."'c::,'~


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In th e p ro cess d escrib ed u nd er q uestion # 1 >the corp orate field an d d esk a ud it section shav e a total of] 1 fu ll tim e au ditors , and the ind iv idu al am ended section has 8 au ditors .T hese a ud ito rs b eco m e inv olv ed in th e ed it/au dit p ro cess as retu rn s are p ro gramm a ticallysuspended for exam ination d ue to factors such a s m a th em a tica l er ro rs , or possibly

6 ~ i : i s ~ a 1 1 ~ ~ ~ a W ~ f $ l i t s a f 4 ~ ~ a . W ~ $ t l ; ~ w i ~ ~ ~ a . , : " . , ~ ~ \ ' " i ; ; ; : r ~ .. : ~ ~ " : ~ : ~ ? ' ~ ' ; ~ ! ~ I3. The total number of audits performed by the Tax Commission involving;a. the "original" venture capital tax credit authorized by 68 O.S. Section2357.7;

b. the Small Business Capital Formation Incentive Act credit(s); andThree field au dits , and ten au dit rev iew s.

c. the Rural Venture Capital Formation Incentive Act credit(s),Tw o field au dits , and eight au dit rev iew s.4. The result of any audit identified in Question No.3, which was performed priorto the effective date of Enrolled S8 No. 1577 (2006 Regular Session) including~----".=r-z~ c-r-==,===.==JhespecjftG.actlon ..akenwjthregar('j~to ..aerea jt c la tmecFoufo isaHowea::- in "w . o le or in part (within the limit of 68 O.S, Section 205);S ec 2357 .7 -- O ne assessm ent resu lting in a final liab ility of$12,042. N o credits w eredisal lowed.SHCCo's - One resu lted in d isallo wed cred its of $6 7 ~4 00, o ne C ap ital C om p anydisqu alified . O thers resu lted in u phold ing the entities' qualification & cred its , o r filin g o fa dd it io na l in fo rma t io n s u pp o rt in g q u alif ic at io n & credi ts .R SBC Co's ..- A lI resul ted in u p ho ld in g t he e nt it ie s' q u alif ic at io n & c re dit s, o r filing ofa dd it io na l in fo rma t io n s u pp or tin g q u alif ic at io n & credits.5. The result of any audit identified in Question No.3, which was performed onor after the effective date of Enrolled SB No. 1577 (2006 Regular Session),including the specific action taken with regard to a credit claimed but disallowedin whole or in part (within the limit of 68 O.S. Section 205).N o field au dits perform ed af ter the ef fect iv e date of SB N o 1577 du e to resou rcerestric tions & the m inim al nu m ber of cred itd isa llow ed claim s .] .. . "..: ;.;:. ,;;;,:u .....",",, a ud its th at res ult in a ss es sm e nts & ,. ,:.',.1 L. " "

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