Dear Client:

Year 2010 saw the enactment of numerous legislative stimulus measures, such as the Hiring Incentives to Restore Employment (HIRE) Act, the Small Business Jobs Act, the recently enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act, and the historic health care legislation with its many tax components. Increased activity by both the Courts and IRS with respect to providing guidance to taxpayers and the interpretation of existing law also occurred in year 2010.

We have attached, for your consideration, a summary that provides a review of the key tax law developments of 2010, and their impact on taxpayers.

We hope this information is helpful. If you would like more details about these provisions or any other aspect of the new tax laws, please do not hesitate to call the partner or principal servicing your account.

Very truly yours,

AVZ