Breakdown of FY 2009 Q4 EOD hires

1. Breakdown of FY 2009 Q4 EOD hires Full working level Below (5-11) Above (12+) BOD Total • SBSE (total) • Exam • BSA • Other (offshore) • LMSB (total) • Domestic • Other (Int/FP) • TEGE (total) • EO: Field • EO: Non-field • EP • Appeals • Total • Percentage • 366 • 320 • 28 • 18 • - • - • 16 • 4 • 12 • - • - • 382 • 47% • 274 • 202 • - • 72 • 125 • 86 • 39 • 21 • - • 10 • 11 • 10 • 430 • 53% • 640 • 522 • 28 • 90 • 125 • 86 • 39 • 37 • 4 • 22 • 11 • 10 • 812 Source: Corporate RA hiring announcement March 27, 2009

2. 1040 Class 4 weeks 1040 OJT 1 1040 OJT 2 5 weeks 16 weeks Orientation + Classroom 1 1040 Classroom 2 + select OJT 2 workshops Simulation 5 weeks 3 weeks 1 week Pre-Audit at POD 1040 OJT 2 1 week 15 weeks Redesigned BFWL training option reduces instructor needs, improves productivity, and creates a common experience among incoming RAs 1ST 26 WEEKS OF RA TRAINING Below FWL SBSE OJT 1 / 1040 classroom training Current training plan at 18 locations (26 weeks) Orientation Class 1 week Field Proposed training solution for the 4 consolidated locations (25 weeks) Move OJT 1 and select OJT 2 workshops to classroom and reduce OJT 2 by 1 week Class Field Source: Interviews, team analysis

3. Orientation Orientation 1040 Class 1 week 1 week 4 weeks 1040 OJT 1 1040 OJT 2 5 weeks 16 weeks Mini-program (Core + workshops) 3 week Combining the upfront curriculum for experienced above FWL hires reduces the training program by 17 weeks and gets the RAs to the field quicker 1ST 26 WEEKS OF RA TRAINING Above FWL SBSE OJT 1 / 1040 classroom training Current (26 weeks before field work) Class Field Proposed (9 weeks before field work) 1040 OJT 2 Class 5 weeks Field Source: Interviews, team analysis