EFTA00604789.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 EFTA00604789  How Arc You Managing? J.H. COHN LLP 121.2 Avant...It& IfInfriat5 New York. NY 10036 Aticonum and CcelcutTarti cap 1919 212-297-0400 fax 212-922-0913 totosulkoltniorst CORE CLUB MEMBERS CORPORATION ENCLOSED ARE THE ORIGINAL AND ONE COPY OF YOUR 2007 CORPORATE TAX RETURNS, AS FOLLOWS... 2007 U.S. CORPORATION INCOME TAX RETURN 2007 NEW YORK CORPORATION INCOME TAX RETURN 2007 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, GARY LEVY NI NI :A INTERNATIONAL I.N. Cohn LIP is a mambo of Ntaia Inenaateonal a worldwide mooch of independent accourams and consulting fans. EFTA00604790  2007 TAX RETURN FILING INSTRUCTIONS U.S. CORPORATION INCOME TAX RETURN FOR THE YEAR ENDING DECEMBER 31, 2007 Prepared for CORE CLUB MEMBERS CORPORATION Prepared by J.H. COHN LLP To be signed and dated by THE APPROPRIATE CORPORATE OFFICER(S). Amountoftax Total tax $ 0 Less: payments and credits $ 0 Plus: Interest $ 0 NO PMT REQUIRED $ Overpayment CmdkedloymrestimMedtax $ 0 Retmdedtoyou $ 0 Make check NOT APPLICABLE payable to Mail tax return and check (if DEPARTMENT OF THE TREASURY applicable) to INTERNAL REVENUE SERVICE CENTER CINCINNATI, OH 45999-0012 Return must be mailed on PLEASE SIGN AND MAIL AS SOON AS POSSIBLE. or before Special Instructions EFTA00604791  U.S. Corporation Income Tax Return O/48 No. 1545.0123 For. 1120 For calendar year 2007 or tax year Department of Ira Leta. . Internal Revenue Saute:, beginning . ending 2007 A Check it Use Name B Onp10 er identification nut to Consolidated rattan 0 IRS Plinth Form 851) label. CORE CLUB MEMBERS CORPORATION b Lie/ncnItle comae- a elated return Other- Number. street. and room or suite no. If a P.O. box, see instructions. Date hoop orated 2 Personal holOn? CO 0 wise, 12/06/2004 3 Personal Wyk.aNDO print D Total assets (see Instructions) Nee nsaucbons) or type. City or town, state. and ZIP code 4 Schedule 14-3 attached CI 124,202. I' 1 i C WWI IL UN I IIIIMI (MUM iZIL_I rural return tap i name unange ill/L-1 Arlaress cnange 1 terms recelple a Salt. I 4, 856,394 . BLS returns Dna allowances I 89,340.Ic Bal Ph. to 4,76-7,054. 2 Cost of goods sold (Schedule A, line 8) 2 4,270,728. 3 Gross profit Subtract line 2 from line lc 3 496,326. 4 Dividends (Schedule C, line 19) 4 1 5 Interest 5 6 Gross rents 6 _ 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 O. II 496,326. pee instructions for limitations on deductions.( 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 16 Rents 16 400,000. 17 Taxes and licenses BEE 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 25 Domestic production activities deduction (attach Form 8903) 25 26 Other deductions (attach schedule) SEE STATEMENT 2 26 838,256. (Deductions 27 Total deductions. Add lines 12 through 26 Ille. 27 1,238,656. 28 Taxable incomebeam net operating bss decluction and special deductions. Subtract line 27 from line 11 28 <742,330.: 29 Less: a Net operating loss deduction STATEMENT 3 0. b Special deductions (Schedule C, line 20) I 29 29b I 29c I 30 Taxable Income. Subtract line 29c from line 28 (see instructions) 30 <742,330 31 Total tart (Schedule J, line 10) 31 0. 32 a 2006 overpayment credited to 2007 32a Tax and Payments b 2007 estimated tax payments 32b e 2007 refund applied for on Form 4466 32c d Bal Iln. 32d e Tax deposited with Form 7004 32e f p ets: (1) Form 2939 (2)Fcrm 4136 32f 32g 33 Estimated tax penalty (see instructions). Chedc B Form 2220 is attached 33 34 Amount owed. If line 32g is smaller than the total of lines 31 and 33, enter amount owed 34 0. 35 Overpayment If line 32g is larger than the total of lines 31 and 33, enter amount overpaid 35 36 Enter amount from line 35 you want Credited to 2008 estimated tax 00 Refunded O. 36 Undo' penahies of per I declare that I have married this return, inducing accompanying scheduks aro staltnrcr la. srei to the boat 0' in kn'.rkeoe..nd ocher. 4 is true. correct. and complete. Dedwatian of prepare. (other than taxpayer) is booed on all information ol which prepare, has any knowledge. Sign Here I vriria„airirrArs 8 ann skpaivrorgokisi Date toe IF/ Yes No Preparere Date tAleCk it a Vi signature sal-ernployed Paid Preparers Farina:nu H /3 . H. COHN L LP EIN Use Only Ise:tenni vow, Phone no. adcluss. and ZP coda 12/26-07 JWA For PrIvacy/Paperwork Reduction Act Notice, see instructions. 7116°1 Form 1120 (2007) EFTA00604792 Famu20,2mn CORE CLUB MEMBERS CORPORATION Page 2 Schedule A Cost of Goods Sold (see instructions 1 Inventory at beginning of year t 49,811. 2 Purchases 2 4,342,157. 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 4,391,968. 7 Inventory at end of year 7 121,240. 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, ine 2 8 4,270,728. 9 a Check all methods used for valuing closing inventory: (i) M Cost (ii) 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 la• Li c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) 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? LJ Yes LXJ No f Was there any change in determining quantities, cost, or valuations between opening and c osing inventory? 1 11 (a)Dividends (c) Special deductions Schedule C Dividends and Special Deductions (see instructions) received (ti) % (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 preferred stock of less-than-20% -owned pubic utilities 42 5 Dividends al certain preferred stock of 20%-a-n ore-onned public otitis; 48 8 Dividends Iran lesa-than-2094 -wined faagn caporations and certain FSCs 70 7 Dividends from 20% -or-rnse-aemed 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 mambas 100 12 Dividends Iran certain FSCs 100 13 Dividends kill foreign co:casabas not friduled on fifes 3.8. 7.8. 11. er 12 14 inane from ceeholed fcceign corporation under subpart F (attach Forns)5471) 15 Foreign dividend gross-up 16 C -DISC and former DISC dividends not included on Ines 1.2. or 3 17 Other dividends 18 Deduction for dividends paid on certain preferred stock of public ditties 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 II" 20 Total special deductions. Add lines 9. 10. 11. 12. and 18. Enter here and on page 1, line 29b Ill• Schedule E Compensation of Officers zotrztru rro line .;:zath= le 1,mairiceolsoinc, la pin fines 4 though 10 al page 1) are a500.000 or more. (b)Social security (c) Percent of Percent of corporation (fiAmount of (a) Name ol officer number time devoted stock o erred to business (d) Com mo n (e) Preferre d compensation *JENNIE 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 I2.28-07 JWA Form 1120 (2007) 2 2007.07080 CORE CLUB MEMBERS CORPORATI EFTA00604793 Form 1120(2007) CORE CLUB MEMBERS CORPORATION Page 3 Schedule .1 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) 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 Credits from Forms 5735 and 8834 5b c General business credit. Check applicable box(es): D Form 3800 D Form 5884 El Form 6478 0 Form 8835, Section B 0 Form 8844 CI Form 8846 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 O. 8 Personal holding company tax (attach Schedule PH (Form 1120)) 8 9 Other taxes. Check it from' CI Form 4255 El Form 8611 El Form 8697 Form 8866 l= Form 8902 l= Other (attach schedule) 9 10 Total tax. Add lines 7 through 9. Enter here and on page 1, fine 31 10 O. Schedule K I Other Information (see instructions) 1 Chedc 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. Ir. of the corporation? X b BuyilirapCbVIly O. PRIVATE MEMBERS CLUB If 'Yes," enter (a)Percentage owned Illo. c Proaci er ealtiCeP. PRIVATE MEMBERS CLUB and (b) Owners country In. 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 Illb. employer identification number (EIN), (b) percentage owned. 8 Check this box it the corporation issued publicly offered and (e) taxable income or (loss) before NOL and special deduction 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 Nes,' enter name and EIN of the parent corporation Ili• 9 Enter the amount of tax-exempt interest received or accrued during the tax year pr. $ 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) Iln. 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 NOL for the tax year and is of attribution, see section 267(c).) STATEMENT 4 X electing to forego the carryback period, check here 1100 III If Nes,' attach a schedule showing name and identifying If the corporation si filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be number. (Do not include any information already entered attached or the election will not be valid. in 4 above.) Enter percentage owned Ir. 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) 29a.) In. $ 954,780. 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 Nes,' 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 property distributions (other each subsidiary. than cash) made during the tax year. Pao $ JWA Form 1 20 (2007) 711621 12.26-07 3 2007.07080 CORE CLUB MEMBERS CORPORATI EFTA00604794 Fwm1120(2007) CORE CLUB MEMBERS CORPORATION 4 i Schedule L I Balance Sheets per Books Beginning etax yeas Ed Llyca' Assets (a) (b) (c) (d) 1 Cash 2a Trade notes and accounts receivable b Less allowance for bad debts ( 3 Inventories 49,811. 121,240. 4 U.S. government obligations 5 Tax-exempt securities 6 on. currant Mete tan. mkt 7 Loans to shareholders 8 Mortgage and real estate bans 9 Other investments (an. sch.) 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) 1,925. 3,515. b Less accumulated amortization ( 1604 1,765. ( 5534 2,962. 14 Other assets (at sch.) 15 Total assets 51,576. 124,202. Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgaged notes. bends payable in leeston 1 yeer 18 Other current liabilities (ate sch.) $TMT 5 28,004. 31,630. 19 Loans from shareholders 20 licTidefele. meet bonds payabea In I yeas more 21 Other liabilities (att. sch.) STMT 6 990,851. 1,802,384. 22 Capital stock: a Preferred stock I) Common stock 23 Additional paid-in capital 24 2;4snet eirdnirac; =piste 25 Retained earnings -Unappropriated <967,279.> <1,709,812. 26 .4=V oatTuren 27 Less cost of treasury stock ) 28 Total liabilities and shareholders' equity.. 51,576. 124,202. I Schedule M-1 I Reconciliation of Income (Loss) oer Books With Income oar Return Note: Schedule M-3 required instead of Schedule 1A-1 if total assets are $10 million or more - see instructions 1 Net income (loss) per books <742,533 >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 ramoci to tax not recorded on becks this 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 sentributkris Charitable U canirleulions Travel and C Ceinetalnment STMT 7 203. 203 9 Add lines 7 and 8 6 Add lines 1 through 5 <742,330 >10 Income (page 1. line 28)- foe 6 less line 9 <742,330.> Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year <967,279 • >5 Distributions: a Cash 2 Net income (loss) per books <742,533 b Stock 3 Other increases (itemize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6 4 Add lines 1. 2. and 3 <1,709,812. >8 Balance at end of year (ine 4 less line 7) <1,709,812.> 711631 12.26-07 JWA Form 1 120 (2007) 4 2007.07080 CORE CLUB MEMBERS CORPORATI EFTA00604795  Alternative Minimum Tax - Corporations 4626 OMB No. 1535.0175 2007 FOrm OP See separate instructions. Depadrneril of the Tieatury Interns Revenue SoatvICO ► Attach to the corporation's tax return. Name Ernp10,4101W1000000m^15,0 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 <742,330.> 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 <742,330.> 4 Adjusted current earnings (ACE) adjustment a ACE from line 10 of the ACE worksheet in the instructions 4a <742,330. 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 adjustrneMs 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 6 <742,330.> 6 Alternative tax net operating loss deduction (see instructions) STATEMENT 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). B zero or less, enter -0- b Multiply line 8a by 25% (25) c Exemption. Subtract line 8b from $40,000 (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 (2007) 717001 1J-27.07 5 2007.07080 CORE CLUB MEMBERS CORPORATI EFTA00604796 CORE CLUB MEMBERS CORPORATION Adjusted Current Earnings (ACE) Worksheet ► See ACE Worksheet Instructions. 1 Pre-adjustment AMTI. Enter the amount from line 3 of Form 4626 <742,330.> 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) Property deserted in sections 168(f)(1) through (4) 2b(5) (6) Other property 20(6) (7) Total ACE depreciation. Add lines 2b(1) through 2b(6) 2b(7) c ACE depreciation adjustment. Subtract line 2b(7) from line 2a 2c 3 Inclusion in ACE of items included in earnings and profits (E&P): a Tax-exempt interest income 3a b Death benefits from life insurance contracts 3b c All other distributions from life insurance contracts (inducing surrenders) 3c d Inside buildup of undistributed income in life insurance contracts 3d e Other items (see Regulations sections 1.56(g)-1(c)(6)(iii) through (k) for a partial list) 3e f Total increase to ACE from inclusion in ACE of items included in E&P. Add fines 3a through 3e 3f 4 Disallowance of items not deductible from E&P: a Certain dividends received 4a Dividends paid on certain preferred stock of public utilities that are deductible under section 247 4b c Dividends paid to an ESOP that are deductible under section 404(k) 4c d Nonpatronage dividends that are paid and deductible under section 1382(c) 4d e Other items (see Regulations sections 1.56(g)-1(d)(3Xi) and (ii) fora partial list) 4e f Total increase to ACE because of disallowance of items not deductible from E&P. Add lines 4a through 4e 4f 5 Other adjustments based on rules for figuring E&P: a Intangible drilling costs 5a b Circulation expenditures 50 c Organizational expenditures Sc d LIFO inventory adjustments ad e Installment sales ae f Total other E&P adjustments. Combine lines 5a through 5e 5f 6 Disallowance of loss on exchange of debt pools 6 7 Acquisition expenses of life insurance companies for qualified foreign contracts 7 8 Depletion