EFTA01075659.pdf

Caution: Forms printed from within Adobe Acrobat products may not meet IRS or state taxing agency specifications. When using Acrobat 5.x products, uncheck the "Shrink oversized pages to paper size" and uncheck the "Expand small pages to paper size" options, in the Adobe "Print" dialog. When using Acrobat 6.x and later products versions, select "None" in the "Page Scaling" selection box in the Adobe "Print" dialog. CLIENT'S COPY EFTA01075659  How Arc You Managing. •• J.H. in J H• CORN LLP 1212 Avenue effete Americas New York. NY 10036 Auto:y.1z and Ccrnsuturn grxe 1919 212-297-0400 fax 212-922-0913 totemjhcohniant CORE CLUB MEMBERS CORPORATION 66 E 55TH STREET NEW YORK , NY 10022 ENCLOSED ARE THE ORIGINAL AND ONE COPY OF YOUR 2006 CORPORATE TAX RETURNS, AS FOLLOWS... 2006 U.S. CORPORATION INCOME TAX RETURN 2006 NEW YORK CORPORATION INCOME TAX RETURN 2006 NEW YORK MTA SURCHARGE RETURN 2006 NEW YORK CITY CORPORATION INCOME TAX RETURN WE RECOMMEND THAT YOU SEND THE RETURNS TO THE TAXING AUTHORITIES BY CERTIFIED MAIL WITH A REQUEST FOR A RETURN RECEIPT. PLEASE RETAIN THE RECEIPT AS A PROOF OF TIMELY FILING. WE SINCERELY APPRECIATE THIS OPPORTUNITY TO SERVE YOU. IF YOU HAVE ANY QUESTIONS REGARDING THE RETURNS, PLEASE DO NOT HESITATE TO CALL. EACH ORIGINAL RETURN SHOULD BE DATED, SIGNED AND FILED IN ACCORDANCE WITH THE FILING INSTRUCTIONS. COPIES OF EACH RETURN SHOULD BE RETAINED FOR YOUR FILES. SINCERELY, JOEL BOFF NEX1 INTERNATIONAL H. Cohn Lin is a member of Nada International. a wodetwde network of independent accounting and consulting Sam EFTA01075660  2006 TAX RETURN FILING INSTRUCTIONS U.S. CORPORATION INCOME TAX RETURN FOR THE YEAR ENDING DECEMBER 31, 2006 Prepared for CORE CLUB MEMBERS CORPORATION 66 E 55TH STREET NEW YORK , NY 10022 Prepared by J.H. COHN LLP 1212 6TH AVENUE NEW YORK, NY 10036 To be signed and dated by THE APPROPRIATE CORPORATE OFFICER(S) . Amount of tax Total tax $ 0 Less: payments and credits $ 0 Pkts: interest and penalties $ 0 NO PMT REQUIRED $ Overpayment Credited to your estimated tax $ 0 Refunded to you $ 0 Make check NOT APPLICABLE payable to Mail tax return and check (if INTERNAL REVENUE SERVICE CENTER applicable) to CINCINNATI, OH 45999-0012 Return must be mafled on PLEASE SIGN AND MAIL AS SOON AS POSSIBLE. or before Special Instructions PLEASE REMOVE PRIOR TO FILING AND RETAIN FOR YOUR RECORDS 600084105.01.06 EFTA01075661  U.S. Corporation Income Tax Return OMR No. tS 45.01:3 Form1120 For calendar year 2006 or tax year Depaitmani ones Trooture Internal Revenue Svelte beginning , ending 2006 A Check it Use Name B c nyVx,e ttle.Thc- he I Conedidated return 0 IRS CORE CLUB MEMBERS CORPORATION (attach Form 851) label. 2 Personal licking co. Other- Number, street, and room or suite no. If a N. box, see instructions. Date incorporated (attach Sch. PH( r Personal service OXIA-1 wise, 66 E 55TH STREET 12/06/2004 (see instructions) print City or town, state, and ZIP code D 'Neal assets (see tons) 4 Schee:kite DA-3 requireh or type. (attach Sch. Inf NEW YORK NY 10022 51,576. E Check it 1)LJ Initial return (2)! I Final return (3)1_1 Name change (4)1_1 Address change 1 SOross receipts or sales ll 3,536,643. b Less returns and allowances I 169,926.Ic Bal P. lc 3,366,717. 2 Cost of goods sold (Schedule A, line 8) 2 3,920,908. 3 Gross profit Subtract line 2 from line lc 3 <554,191.: 4 Dividends (Schedule C, line 19) 4 5 Interest 5 8 6 Gross rents 6 S 7 Gross royalties 7 8 Capital gain net income (attach Schedule D (Form 1120)) 8 9 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) 9 10 Other income (attach schedule) 10 11 Total income. Add lines 3 through 10 Il.. 11 <554,191.: IDeductions (See Instructions for limitations on deductions.]l 12 Compensation of officers (Schedule E, line 4) 12 18 Salaries and wages (less employment credits) 13 14 Repairs and maintenance 14 16 Bad debts 15 15 Rents 16 400,000. 17 Taxes and licenses SEE STATEMENT 1 17 400. 18 Interest 18 19 Charitable contributions 19 20 Depreciation from Form 4562 not claimed on Schedule A or elsewhere on return (attach Form 4562) 20 21 Depletion 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans 23 24 Employee benefit programs 24 26 Domestic production activities deduction (attach Form 8903) 25 26 Other deductions (attach schedule) SEE STATEMENT 2 26 128. 27 Total deductions. Add lines 12 through 26 Plo 27 400,528. 28 Taxable incomebeim net cperaleng bus dfxluction and spedial deductions. Subtract line 27 horn line li 28 <954,719.: 29 Less: a Net operating loss deduction ETATEMENT 3 I 29e I 0 . b Special deductions (Schedule C, line 20) .. 29b 29c 30 Taxable Income. Subtract line 29c from line 28 (see instructions) 30 <954,719.: 31 Total tax (Schedule J, line 10) 31 0. 32 a 2005 overpayment credited to 2006 32a Tax and Payments b 2006 estimated tax payments 32b c 2006 refund applied for on Form 4466 32c ) d Bat II. 32d e Tax deposited with Form 7004 32e f aeon: ( 1) Form 2939 ( 2)Form 4138 32f g Credit for federal telephone excise tax paid (attach Form 8913) 32g 32h 33 Estimated lax penalty (see instructions). Check if Form 2220 is attached P . 0 33 34 Amount owed. If line 32h is smaller than the total of lines 31 and 33, enter amount owed 34 0 . 35 Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid 35 36 Enter amount from line 35 you want Credited to 2007 estimated tax Ilw Refunded O. 36 I Under penalties ol damn I declare that I have exambed this return. Including acomrdanyeng schedules and statements. and to the best of my knowledge end babel. II as true. si gn correct. end complete. Declaration of prepotet fans than taxpayer) la based on all Information of which predator has any knowledge. Is kakpni 17 4:7P•di srla 4 tetra ' em Here L r syvauwor arrow I Dale 'rx l_x] Yes No PlOpdifWA Oat. Check it vonatio. sell-ernployed Paid Preparers irmittnamt J •H • COHN LLP Eli Use Only rce voy,, 4 r•etenVoYed). 1212 6TH AVENUE Phone no. F IIIIIIII I--- adder.% and 2IP code NEW YORK, NY 10036 ,V 06;t in JWA For Privacy/Paperwork Reduction Act Notice, see Instructions. 1 Form 1120 (2006) 16440220 701201 0706463004 2006.09010 CORE CLUB MEMBERS CORPORATI 07064632 EFTA01075662  Feimil20'2036i CORE CLUB MEMBERS CORPORATION Page2 Schedule A Cost of Goods Sold (see instructions) 1 Inventory at beginning of year 76,649. 2 Purchases 2 3,894,070. 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule) 5 6 Total. Add fines 1 through 5 6 3,970,719. 7 Inventory at end of year 7 49,811. 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, ine 2 8 3,920,908. 9a Check all methods used for valuing closing inventory: (i) M Cost (ii) 0 Lower of cost or market (iii) 0 Other (Specify method used and attach explanation.) ON• b Check if there was a writedovm of subnormal goods c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) II, 0 d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO I 9d e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? U Yes LXJ No f Was there any change in determining quantities, cost, or valuations between opening and c osing inventory? 11 11 (a)Dividends (c)Special deductions Schedule C Dividends and Special Deductions (see instructions) received (b) % (a)x (b) 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) 70 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) 80 .34, 3 Dividencb on debt-financed stock of domestic and foreign corporations int*UCtron: 4 Dividends al certain prekrred stock of less-than-20%-owned pubic utilities 42 5 Dividends al certain preferred stock of 2094 -cr-more-onned public otitis; 48 8 Dividends Iran lesa-than-2094 -sued foreign cerporations and certain FSCs 70 7 Dividends from 2016 -or-rnse-ovmed forces, corporations and certainFSCs 80 8 Dividends from wholly owned foreign subsidiaries 100 9 Total. Add lines 1 through 8 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 100 11 Dividends Iran affiliated grow members 100 12 Dividends Iran certain FSCs 100 13 Dividends flan foreign caporalians not friduled on Ores S. 8. 7.8. 11. er 12 14 inane from catoled foreign corporatists under subpart F (attach Forns)5471) 15 Foreign dividend gross-up 16 oc -DISC and former DISC dividends nor included on Ines 1.2. or 3 17 Other dividends 18 Deduction for dividends paid on certain preferred stock of public ditties r 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 IP' 20 Total special deductions. Add lines 9. 10. 11. 12. and 18. Enter here and on page 1, line 29 Ow Schedule E Compensation of Officers Iciergu ctir e ath= le 0;li lie rro erects dine la tabs fines 4 through 10 al page 'Owe $600.000 Cr more. (b)Social security (c) Percent of Percent of corporation (f)Amount of (a) Name of officer time devoted stock o erred number compensation to business (d) Common (e) Preferre d ILIENNIE SAUNDERS 100.00% 2 Total compensation of officers 3 Compensation of officers claimed on Schedule A and elsewhere on return 4 Subtract line 3 from line 2. Enter the result here and on page 1. line 12 01.0247 JWA Form 1120 (2006) 2 16440220 701201 0706463004 2006.09010 CORE CLUB MEMBERS CORPORATI 07064632 EFTA01075663  Form 1120 (2006) CORE CLUB MEMBERS CORPORATION Page 3 Schedule J I Tax Computation (see instructions) 1 Check if the corporation is a member of a controlled group (attach Schedule 0 (Form 1120)) od_J 2 Income tax. Check if a qualified personal service corporation (see instructions) P• 2 0. 3 Alternative minimum tax (attach Form 4626) 3 4 Add lines 2 and 3 4 0. 5a Foreign tax credit (attach Form 1118) 5a b Qualified electric vehicle credit (attach Form 8834) 5b c General business credit Check applicable box(es): El Form 3800 El Form 6478 D Form 8835, Section B Q Form 8844 5c d Credit for prior year minimum tax (attach Form 8827) 5d e Bond credits from: D Form 8860 0 Form 8912 5e 6 Total credits. Add lines 5a through 5e 6 7 Subtract line 6 from line 4 7 0. 8 Personal holding company tax (attach Schedule PH (Form 1120)) 8 9 Other taxes. Check if from' CI Form 4255 El Form 8611 El Form 8697 Form 8866 0 Form 8902 0 Other (attach schedule) 9 10 Total tax. Add lines 7 through 9. Enter here and on page 1, Fine 31 10 0. Schedule K I Other Information (see instructions) 1 Check accounting method: a I I Cash b LXJ Accrual Yes No 7 At anytime during the tax year, did one foreign person Yes No c 0 Other (specify) Iln• own, directly or indirectly, at least 25% of (a) the total voting power of all classes of stock of the corporation 2 See the instructions and enter the: entitled to vote or (b) the total value of all classes of stock a Business activity code no. Iii. of the corporation? X b BuyilirapCbVily 00 PRIVATE MEMBERS CLUB If 'Yes," enter (a)Percentage owned Or. c Proaci co 'WACO P. PRIVATE MEMBERS CLUB and (b) Owners country Illi. 3 At the end of the tax year, did the corporation own, directly or c The corporation may have to file Form 5472, Information indirectly, 50% or more of the voting stock of a domestic Return of a 25% Foreign-Owned U.S. Corporation or a corporation? (For rules of attribution, see section 267(c).) X Foreign Corporation Engaged in a U.S. Trade or Business. If "Yes; attach a schedule showing: (a) name and Enter number of Forms 5472 attached Illli• employer identification number (EIN), (b) percentage owned. 8 Check this box if the corporation issued publicly offered and (e) taxable income or (loss) before NOL and special deductions of such corporation for the tax year ending with or debt instruments with original issue discount I, 0 within your tax year. If checked, the corporation may have to file Form 8281, 4 Is the corporation a subsidiary in an affiliated group or a Information Return for Publicly Offered Original Issue parent-subsidiary controlled group? X Discount Instruments. If "Yes; enter name and EIN of the parent corporation Ili• 9 Enter the amount of tax-exempt interest received or accrued during the tax year Illi• $ 10 Enter the number of shareholders at the end of the tax 5 At the end of the tax year, did any individual, partnership, year (if 100 or fewer) Illi. corporation, estate, or trust own, directly or indirectly, 50% or more of the corporation's voting stock? (For rules 11 If the corporation has an MX for the tax year and is of attribution, see section 267(c).) STATEMENT 4 X electing to forego the carryback period, check here Ili. RI If "Yes; attach a schedule showing name and identifying If the corporation is filing a consolidated return, the statement required by Temporary Regulations section 1.1502-21T(b)(3) number. (Do not include any information already entered must be attached or the election will not be valid. in 4 above.) Enter percentage owned IIII• 100.00 12 Enter the available NOL carryover from prior tax years 6 During this tax year, did the corporation pay dividends (other (Do not reduce it by any deduction on line than stock dividends and distributions in exchange for stock) 2%.) Ilu. $ 12,560. in excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) X 13 Are the corporation's total receipts (line la plus lines 4 through If "Yes; file Form 5452, Corporate Report of 10 on page 1) for the tax year and its total assets at the end of the Nondividend Distributions. tax year less than $250,000? X If 'Yes," the corporation is not required to complete Schedules L, If this is a consolidated return, answer here for the parent M-1, and M-2 on page 4. Instead, enter the total amount of cash corporation and on Form 851, Affiliations Schedule, for distributions and the book value of properly distributions (other each subsidiary. than cash) made during the tax year. Ilu.$ Note: If the corporation, at any time during the tax year, had assets or operated a bu mess in a foreign country or U.S. possession, it may be required to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this eturn. See Schedule N for details. JWA Form 1 120 (2006) 611671 12-20-06 3 16440220 701201 0706463004 2006.09010 CORE CLUB MEMBERS CORPORATI 07064632 EFTA01075664  Fwm1120000 CORE CLUB MEMBERS CORPORATION Pape 4 Schedule L I Balance Sheets per Books Beginning of tax yw End of la. Assets (a) (b) (c) (d) 1 Cash 2a Trade notes and accounts receivable b Less allowance for bad debts ( 3 Inventories 76,649. 49,811. 4 U.S. government obligations 5 Tax-exempt securities 6 oirs currant Mate tan. scizi 7 Loans to shareholders 8 Mortgage and real estate bans 9 Other investments (att. sae) 10a Buildings and other depreciable assets b Less accumulated depreciation ( 11a Depletable assets b Less accumulated depletion 12 Land (net of any amortization) • 13a Intangble assets (amortizable only) 12,775. 1,925. b Less accumulated amortization ( 32.) 12,743. ( 1604 1,765. 14 Other assets (at sch.) 15 Total assets 89,392. 51,576. Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgages. notes. bolds payable in less ton 1 seer 18 Other current liabilities (ate Bch.) $TMT 5 22,133. 28,004. 19 Loans from shareholders 20 titai0e9aia. meet bonds pay**. in I yew of moo 21 Other Ibbilities (att. sch.) . STMT 6 79,819. 990,851. 22 Capital stock: a Preferred stock I) Common stock 23 Additional paid-in capital 24 2:Isn't ti inrirairac; mutate 25 Retained earnings -Unappropriated <12,560.> <967,279. 26 cc Atisyl=c5ht°sr:at:iar' l 5. 27 Less cost of treasury stock ) 28 Total liabilities and shareholders' equity.. 89 , 392 . 51,576. I Schedule M-1 I Reconciliation of Income (Loss) oer Books With Income oar Return Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more - see instructions 1 Net income (loss) per books <954,719 >7 Income recorded on books this year not 2 Federal income tax per books included on this retum (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest $ 4 InCOme SitbJeCt to tax not regarded on WOKS MIS year (itemize): 8 Deductions on this retum not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this retum (itemize): a Depreciation 010/1191:010 a Depreciation contribution:a & charitable u contriatilione Travel and geortalnment . $ 9 Add lines 7 and 8 6 Add lines 1 through 5 <954,719 >10 Income (page 1. line 28)- foe 6 less line 9 <954,719.> Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year <12,560 • >5 Distributions: a Cash 2 Net income (loss) per books <954,719 b Stock 3 Other increases (itemize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6 4 Add lines l, 2 and 3 <9 67 279 . >8 Balance at end of year ine 4 less line 7 <967.279.> 611631 RAm 12.29-06 um% Form 1120 (2006) 4 16440220 701201 0706463004 2006.09010 CORE CLUB MEMBERS CORPORATI 07064632 EFTA01075665  Alternative Minimum Tax - Corporations FOrm 4626 OP See separate instructions. OLIO No. 1535-0175 Depadrneril of the Tieatury Interns Revenue SoatvICO Name di. Attach to the corporation's tax return. 2006 CORE CLUB MEMBERS CORPORATION Note: See the instructions to find out if the corporation is a small corporation exempt from the alternative minimum tax (AMT) under section 55(e). 1 Taxable income or (loss) before net operating loss deduction 1 <954,719.> 2 Adjustments and preferences: a Depreciation of post-1986 property 2a b Amortization of certified pollution control facilities 2b c Amortization of mining exploration and development costs 2c d Amortization of circulation expenditures (personal holding companies only) 2d e Adjusted gain or loss 2e f Long-term contracts 2f g Merchant marine capital construction funds 2g Section 833(b) deduction (Blue Cross, Blue Shield, and similar type organizations only) 2h I Tax shelter farm activities (personal service corporations only) 2i j Passive activities (closely held corporations and personal service corporations only) 2j k Loss imitations 2k I Depletion 21 m Tax-exempt interest income from specified private activity bonds 2m n Intangible drilling costs 2n o Other adjustments and preferences 2o 3 Pre-adjustment alternative minimum taxable income (AMTI). Combine Ines 1 through 2o 3 <954,719.> 4 Adjusted current earnings (ACE) adjustment a ACE from line 10 of the ACE worksheet in the instructions 4a <954,719. b Subtract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a negative amount (see instructions) 4b 0. c Multiply line 4b by 75% (.75). Enter the result as a positive amount 4c d Enter the excess, if any, of the corporation's total increases in AMTI from prior year ACE adjustments over its total reductions in AMTI from prior year ACE adjustments (see instructions). Note: You must enter an amount on line 4d (even if line 4b is positive) 4d e ACE adjustment • If line 4b is zero or more, enter the amount from line 4c • If line 4b is less than zero, enter the smaller of line 4c or line 4d as a negative amount Je 4e 0. 5 Combine lines 3 and 4e. If zero or less, stop here; the corporation does not owe any NAT 5 <954,719.> 6 Alternative tax net operating loss deduction (see instructions) 6 7 Alternative minimum taxable income. Subtract line 6 from line 5.1f the corporation held a residual interest in a REMIC, see instructions 7 8 Exemption phase-out (if line 7 is $310,000 or more, skip lines 8a and Bb and enter -0- on line 8c): a Subtract $150,000 from line 7 (if completing this line for a member of a controlled group, see instructions). Bzero or less, enter -0- 8a D Multiply line 8a by 25% (25) 80 c Exemption. Subtract line 8b from 540,000 (if completing this ine fora member of a controlled group, see instructions). If zero or less, enter -0- 8c 9 Subtract line 8c from line 7. If zero or less, enter -0- 9 10 Multiply line 9 by 20% (.20) 10 11 Alternative minimum tax foreign tax credit (AMTFTC) (see instructions) 11 12 Tentative minimum tax. Subtract line 11 from line 10 12 13 Regular tax liability before applying all credits except the foreign tax credit and the American Samoa economic development credit 13 14 Alternative minimum tax. Subtract line 13 from line 12.1f zero or less, enter -0-. Enter here and on Form 1120. Schedule J. line 3, or the appropriate line of the corporation's income tax return 14 JWA For Paperwork Reduction Act Notice, see the instructions. Form 4626(2006) 617001 01.09-07 5 16440220 701201 0706463004 2006.09010 CORE CLUB MEMBERS CORPORATI 07064632 EFTA01075666  CORE CLUB MEMBERS CORPORATION Adjusted Current Earnings (ACE) Worksheet Oro See ACE Worksheet Instructions. 1 Pre-adjustment AMTI. Enter the amount from line 3 of Form 4626 <954,719.> 2 ACE depreciation adjustment: a AMT depreciation 2a ACE depreciation: (1) Post-1993 properly 20(1) (2) Post-1989, pre-1994 properly 2b(2) (3) Pre-1990 MACRS property 2b(3) (4) Pre-1990 original ACRS property 2b(4) (6) Prop