LECG/SMART

Personal Property Tax Compliance Services

A global expert services company providing expert testimony, authoritative studies, and strategic advisory services to clients including Fortune Global 500 corporations, major law firms, and governments worldwide. www.lecg.com

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Personal Property Tax Compliance Servicesp y pTransition

Use of our Transition Project Plan (TPP) that specifically focuses on:

Data Source AnalysisData Source Analysis

Work Process Analysis

Terminology Review

TPP is a comprehensive guide to the overall transition that includes:

Established and definable timelinesEstablished and definable timelines

Communication protocol

Separation of tasks

Gathering DataData request issued based on TPP timeline

Creation of client-specific enterprise of PTMS

Review & verification of imported data with client to ensure accuracy & completeness

24/7 secure, web-based access to returns and tax bills and secure data uploads through STO

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Personal Property Tax Compliance Servicesp y pRendition Preparation and Filing

Analysis of fixed asset classification

Taxable vs Non-taxable determinationTaxable vs. Non-taxable determination

Abatements, Exemptions, Obsolescence, Special treatment of assets

Inventory Exemptions

Ghost asset studies

Fixed asset revaluation and reclassification studies

Valuation NoticesProcess and post valuation noticesProcess and post valuation notices

Contact tax assessor for missing valuation notices

Analysis of valuation notices vs. threshold tolerances

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Personal Property Tax Compliance Servicesp y pAppeals / Audits

Resolve valuation notice differences with tax assessor informallyRespond to tax assessor inquiries for additional information & resolve audit differences with the tax p qassessor/auditor, informallyAdditional representation on formal appeals and audits

Tax BillsProcess and post tax billsContact tax collector for missing tax billsGenerate tax bill check request report

Direct Payment of Tax BillsUse of individual client bank escrow accountsMonthly bank reconciliationsTimely payment of all tax bills to taxing jurisdictions

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Property Tax Management System (PTMS)p y g y ( )

LECG-SMART exclusively uses Tax Compliance, Inc.’s , Property Tax Management System (PTMS), the most powerful and industry-leading property tax software.

Clients also have 24/7 access to returns and tax bills through our secure, web-based property tax portal, SMARTaxOnline (STO).

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Property Tax Management System (PTMS)p y g y ( )

Tax Calendar

A sophisticated, easy-to-use tax calendar notifies LECG-SMART of pending deadlines to facilitate timely compliance and prevent late fees and interest charges.

Instant Data Access and Manipulation

PTMS offers advanced sorting and filtering features to give you instant access to your data. PTMS keeps a year-by-year history of all property and automatically tracks assetdata. PTMS keeps a year by year history of all property and automatically tracks asset additions, deletions, and address changes.

Asset Reclassification

With PTMS, LECG-SMART can easily find and “fix” incorrectly classified assets to ensure proper depreciation/valuation which translates directly to lower tax billsensure proper depreciation/valuation, which translates directly to lower tax bills.

User Defined Asset Valuations

Up-to-date depreciation tables for local jurisdictions are included with PTMS. In addition, PTMS allows LECG-SMART to create and use its own depreciation tables to more accurately reflect the fair market value of your assets.

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Property Tax Management System (PTMS)p y g y ( )

Ghost Assets Identified

PTMS filters allow LECG-SMART to exclude from your tax returns those assets that are retired but still in your fixed asset database. Ensuring you pay no tax on assets you no longer have.

Overvalued Assets Identified

PTMS calculates and compares LECG-SMART’s opinion of the taxable value of your assets with the assessed value returned from the assessor’s office. PTMS automatically alerts LECG-SMART toassessed value returned from the assessor s office. PTMS automatically alerts LECG SMART to any overvaluations by the assessor.

Tax Estimates and Accruals

PTMS calculates tax estimates based on the projected assessed value of your assets for easy, precise accrualsprecise accruals.

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Client ExperiencepTypes of Clients Industry Specialization

Large domestic and Leasinggmulti-national companies

Middle-market companies

g

Insurance and Financial Services

Closely-held and family-owned businesses

Start-ups of all sizes

Retail

Healthcarep

Life Sciences – Biotech/ Pharmaceutical

Manufacturing

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Selected Property Tax Client Experiencep y p

Ace HardwareAramark

Linens-n-ThingsLVMH – Moet, Hennessy, Louis Vuitton

Ball Horticultural CompanyBally Total FitnessBest BuyCircuit City

National EnvelopeNew York & CompanyOlympusSiemens

CoActiv Capital PartnersConocoPhillipsDEB ShopsDollar Tree Stores

Trans World EntertainmentTween BrandsULTA CosmeticsUnisys

GFirst American Equipment FinanceHelzberg DiamondsLimited Brands

United Retail Group, IncUnited States Cold StorageWMS Gaming

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Property Tax Client Referencesp yMr. Michael ButlerDirector, Property/Sales & Use TaxLimited Brands, Inc.Three Limited Parkway

Mr. Nicholas C. AtochaDirector of TaxLouis Vuitton North America625 Madison Avenue, FRNT 3

Ms. Lisa McCoyMs. Sue Hom

Columbus, OH 43230614.415.4048

New York, NY 10022212.931.2177

Director of TaxesDollar Tree Stores, Inc.500 Volvo ParkwayChesapeake, VA 23320757.321.5324

Director of TaxNew York & Company450 West 33rd StreetNew York, NY 10001212.884.2130

Mr. Lonnie LawtonChief Financial OfficerHelzberg Diamonds

Ms. Lu MurphySenior Director, Sales & Local TaxBally Total Fitness Corporationg

1825 SwiftNorth Kansas City, MO 64116816.627.1282

y p8700 W. Bryn Mawr AvenueChicago, IL 60631773.399.7665

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SALT Client RecognitiongHelzberg Diamonds has enjoyed a businessrelationship with SMART for the past 25 years.SMART provides Helzberg Diamonds with a fullservice property tax compliance program and alsoassists us with tax planning for our new stores We

SMART has been preparing our sales and use tax returnsfor over four years now, and I want to take a moment tothank the entire SMART Compliance Team for all you dobehind the scenes to take the detailed tasks requiredeach and every month and produce such high qualityassists us with tax planning for our new stores. We

have been extremely satisfied with the quality of theservice that we have received from SMART and theprofessionalism of the individuals that we have dealtwith. We have also been very pleased with the factthat our account has been serviced by a very stablestaff over the past few years. The individuals on the

y p g q ywork. For the many returns that get prepared and sent bySMART, we get very, very few notices from any state. Weare grateful for the service you perform on our behalf andlook forward to next year.

Jeff Mastin, Tax and Risk Manager

AIG has used SMART to prepare amended state incometax returns related to federal tax audits for five closed taxyears In the process of selecting a vendor to perform this

SMART team who service our account, have manyyears of experience in the business and are veryknowledgeable concerning the various states in whichwe operate. SMART has also been very proactive inmaintaining the latest computer technology availableand does an excellent job of keeping us advised of taxlaw changes and the most advantageous position for

Welch Allyn, Inc.

years. In the process of selecting a vendor to perform thisservice, we met with three of the Big Four firms, SMART,and Jefferson Wells. In addition to the obvious reductionin fees between the Big Four and SMART due to thedifference in business models, we were also impressedby the professionalism and approach that SMART broughtto the table

law changes and the most advantageous position forour company to take in regards to those changes.

I would highly recommend Smart and Associates toany company who has a need for a veryknowledgeable, professional and service-orientedproperty tax compliance provider. to the table.

James R. GruberAmerican International Group, Inc.

p p y p p

Lonnie J. LawtonCFO

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How We Differentiate OurselvesExperience

Significant Managing Director/Manager touch on all engagements

Well-developed skills in process & technology with extensive experience in property tax policyWell-developed skills in process & technology with extensive experience in property tax policy, valuations & appeal procedures

SAS 70 Type I and II CertificationOrganizations displaying only the Type I review, show that they have internal controls in place. Our Type II certification means that our controls have been tested and are working as designed.

Best-In-Class ProcessA mature, robust property tax outsourcing methodology that has been refined and field-tested with our significant base of demanding clients

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How We Differentiate OurselvesPremier Technology

LECG-SMART exclusively uses Tax Compliance Inc.’s, Property Tax Management System (PTMS), the most powerful and industry-leading property tax software(PTMS), the most powerful and industry leading property tax software

24/7 secure, web-based access to returns and tax bills through SMARTaxOnline (STO)

Smooth Transition

A streamlined transition approach that minimizes disruption of client operations and delivers an immediate focus on communication, relationship building, and value

Attractive Fee StructureAttractive Fee Structure

A comprehensive fee structure that details all activities

No “hidden fees”

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State and Local Tax ServicesPersonal Property Tax Compliance

Personal Property Tax ConsultingPersonal Property Tax Consulting

Real Estate Tax Consulting

Sales and Use Tax Compliance ServicesSales and Use Tax Compliance Services

Sales and Use Tax Consulting

State Income/Franchise Tax ComplianceState Income/Franchise Tax Compliance

State Income/Franchise Tax Consulting

Tax Technology ConsultingTax Technology Consulting

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About UsIn March 2010, LECG, LLC (XPRT:NASDAQ) and SMART Business Consulting and Advisory, LLC merged. The combined LECG/SMART is a global expert services and business advisory firm with more than 1,100 professionals in 39 offices worldwide.

Our clients include Fortune Global 500 corporations, major law firms and local state and federal governments and agencies worldwidelocal, state and federal governments and agencies worldwide. LECG/SMART has experience in consumer products, energy, entertainment, media and sports, environment and natural resources, financial services, healthcare and life sciences, insurance, petroleum and chemicals, professional services, real estate, telecommunications, and transportation.professional services, real estate, telecommunications, and transportation.

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Who We AreLitigation, Forensics & Finance

Advisory ServicesBankruptcy & RestructuringForensic AccountingFinance, Valuation & DamagesInsurance ClaimsIntellectual PropertyLegal Technology & Analytical Consulting

Economics & Dispute ResolutionAntitrust & Competition PolicyEconomic & Financial RegulationInternational ArbitrationInternational ArbitrationLabor & EmploymentSecurities Litigation

Consulting & Business AdvisoryActuarial ServicesExecutive SolutionsFi i l S l tiFinancial SolutionsOutsourcing SolutionsCompensation & Benefits ConsultingTechnology Solutions

Governance Assurance & TaxAudit & Attest Services (through SMART and Associates, LLP)Internal Audit & Risk ManagementInternational TaxFederal TaxState & Local tax

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Our Global Footprintp

Global resources to serve large multinational clientsInternational infrastructure optimizes experts’ skills and income potential

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Contact Information

P.J. Olzen, CMI Ted Kolman, MBA

Managing Director847.558.5679

polzen@lecg.com

Senior Manager972.668.3704

tkolman@lecg.comp @ g

James Petersen, CIAO

@ g

John Langman

Director847.558.5680

jpetersen@lecg.com

Senior Manager847.558.5681

jlangman@lecg.com