| Identifier | Return Reference | Explanation |
|---|---|---|
| ATTACHMENT TO FORM 8886, LINE 7BTHE FUND PARTICIPATED IN TRANSACTIONS WHERE LOSSES WERE CLAIMED UNDER IRC SECTION 165 THAT MAY EQUAL OR EXCEED THE RELEVANT $2,000,000 REPORTABLE LOSS THRESHOLD AND TREATED AS ORDINARY PURSUANT TO IRC SECTION 988. HOWEVER, THE FUND CANNOT DETERMINE WITH REASONABLE CERTAINTY WHETHER THE TAX LOSS ON ANY INDIVIDUAL TRANSACTION EQUALS OR EXCEEDS $2,000,000 OR WHETHER THESE LOSSES HAVE MET ANY OF THE EXCEPTIONS PROVIDED IN REVENUE PROCEDURE 2004-66, AND AS SUCH THE FUND IS REPORTING THESE TRANSACTIONS ON A PROTECTIVE BASIS. IN GENERAL, THE ADJUSTED TAX BASIS OF THE ASSETS OBTAINED BY THE FUND IS DETERMINED BY WAY OF CASH PAID AND MAY HAVE BEEN ADJUSTED BY ONE OR MORE STATUTORY PROVISIONS OF THE IRC AS FOLLOWS: WASH SALE ADJUSTMENTS (IRC SECTION 1091); CONSTRUCTIVE SALES (IRC SECTION 1259); STRADDLE LOSS DEFERRALS (IRC SECTION 1092) OR BY OTHER PROVISIONS OF THE IRC. ---------------------------------------------------------------------------------IRS NOTICE 2006-16 MODIFIED NOTICE 2002-35 BY PROVIDING A SAFE HARBOR FROM THE DISCLOSURE REQUIREMENTS IMPOSED BY SECTION 1.6011-4 FOR TAXPAYERS THAT HAVE, SOLELY AS A RESULT OF THEIR DIRECT OR INDIRECT INTEREST IN A PASS-THROUGH ENTITY, PARTICIPATED IN A TRANSACTION THAT IS THE SAME AS OR SUBSTANTIALLY SIMILAR TO THE TRANSACTION DESCRIBED IN NOTICE 2002-35. SECTION 3.02 WILL APPLY IF A TAXPAYER RECEIVES ACKNOWLEDGEMENT THAT THE PASS-THROUGH ENTITY HAS OR WILL COMPLY WITH ITS SEPARATE DISCLOSURE OBLIGATION UNDER SECTION 1.6011-4 WITH RESPECT TO A TRANSACTION DESCRIBED IN NOTICE 2002-35, AND IF THE TAXPAYER'S ONLY OBLIGATION UNDER SECTION 1.6011-4 TO FILE A DISCLOSURE STATEMENT WITH RESPECT TO THAT TRANSACTION ARISES FROM THE TAXPAYER'S DIRECT OR INDIRECT INTEREST IN THAT PASS-THROUGH ENTITY. THE ACKNOWLEDGMENT CAN BE A COPY OF THE FORM 8886 FILED (OR TO BE FILED) BY THE PASS-THROUGH ENTITY, AND MUST BE RECEIVED BY THE TAXPAYER PRIOR TO THE TIME SET FORTH IN SECTION 1.6011-R(E) IN WHICH THE TAXPAYER WOULD OTHERWISE BE REQUIRED TO PROVIDE DISCLOSURE. TAXPAYERS MEETING THE REQUIREMENTS OF SECTION 3.02 OF THIS NOTICE WILL NOT BE TREATED AS HAVING PARTICIPATED IN AN UNDISCLOSED LISTED TRANSACTION FOR PURPOSES OF SECTION 1.66654-2(c)(3)(ii). TAXPAYER HOLDS A DIRECT INTEREST IN SERIES DIVERSIFIED-2, THE FRONTIER FUND (THE FUND) AND, AS A RESULT, PARTICIPATED IN A TRANSACTION DESCRIBED IN NOTICE 2002-35. TAXPAYER REQUESTED VERIFICATION OF THE FUND'S COMPLIANCE WITH ITS SEPARATE DISCLOSURE OBLIGATION UNDER SECTION 1.6011-4 WITH RESPECT TO THIS/THESE TRANSACTIONS. AT THIS TIME THE FUND'S 2011 PARTNERSHIP RETURN HAD NOT BEEN FILED AND IT WAS UNKNOWN IF THE FUND WOULD FILE FORM 8886. TAXPAYER, THEREFORE, IS FILING FORM 8886 AS A PROTECTIVE DISCLOSURE. |
| Category/ Item | Listed at Cost or FMV | Book Value | End of Year Fair Market Value |
|---|---|---|---|
| RBTD---MF-Frontier Diversified Srvs 2 | FMV | 71,232 | 74,255 |
| RTBD-MF-DODGE & COX #145 | FMV | 35,000 | 31,142 |
| RBTD---MF-Pimco Foreign Bond Fund Adm | FMV | 53,000 | 57,544 |
| RBTD---MF-Pimco Total Return Admin 435 | FMV | 104,297 | 104,049 |
| RBTD---MF-Pimco High Yield Fund Admin | FMV | 42,801 | 39,953 |
| RBTD---MF-Pioneer Select Mid Cap Growth | FMV | 21,984 | 21,215 |
| RBTD---MF-Oppenheimer Main St Small Cap | FMV | 35,733 | 41,688 |
| RBTD---MF-MFS Value Fund CL A | FMV | 128,598 | 113,532 |
| RBTD-MF-MFS Intl New Discovery Fund Cl A | FMV | 15,570 | 19,221 |
| RBTD---MF-Hateras Alpha Hede Strat Fd | FMV | 39,000 | 39,975 |
| RBTD---MF-Goldman Sachs Mid Cap Value Fu | FMV | 22,149 | 20,504 |
| RBTD---MF-Fidelity ContraFund 022 | FMV | 133,029 | 177,329 |
| RBTD---MF-AMERICAN EUROPACIFIC GRTH-F2 | FMV | 60,000 | 45,704 |
| RBTD---MF-Eaton Vance Large-Cap Value | FMV |
| Description | Amount |
|---|---|
| PRIOR YEAR LATE PAYMENT PENALTY | 1 |
| Description | Revenue and Expenses per Books | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| P. O. BOX RENTAL | 112 | 56 | 56 | |
| ON-SITE PROMOTION OF CHARITABLE ORG | 203 | 203 | ||
| OFFICE SUPPLIES & POSTAGE-GRANT LETTERS | 77 | 77 | ||
| MISCELLANEOUS OFFICE SUPPLIES & EXPENSES | 98 | 49 | 49 |
| Description | Revenue And Expenses Per Books | Net Investment Income | Adjusted Net Income |
|---|---|---|---|
| Other Investment Income | -5,502 | -5,502 |
| Description | Beginning of Year - Book Value | End of Year - Book Value |
|---|---|---|
| PAYROLL LIABILITES | 398 | 398 |
| Category | Amount | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| FIDUCIARY FEES | 5,847 | 5,847 | 0 | 0 |
| Category | Amount | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| PAYROLL TAXES | 199 | 199 | ||
| FOREIGN TAXES | 170 | 170 | ||
| 2011 EXCISE TAX | 398 | 398 | ||
| 2010 EXCISE TAX | 16 | 16 |