AU251.1 Page 1 JEFFREY EPSTEIN 358 EL BRILLO WAY PALM BEACH Ft 33480 State of New York - Department of Taxation and Finance Statement of Personal Inman, Tax Audit Changes Manhattan District Office Jurisdiction(s): New York State New York City Resident Status: Resident Resident Filing Status: 1 - Single Dote Issued: 03/01/96 Case Number: X-555616246 2 F.R.N.t 47980540 S.S.N.: 090.44-3348 4 S.S.N.: • • JI4 • Tax Period: 1992 New York New York City of Total State City Yonkers Liability Corrected Tax Liability (rem Attachment 1,257,968.330, Tax Previously Paid or Adjusted 591,623.00A, 732,549.79A/ 38,390.00 O ft 1,990,518.12 630,013.00 Additional Tax Liability 666,345.33 4/ 694,159.79 1,360,505,12 Penalties Total Penalties 0.00 0.00 0.00 Interest Computed to • 03/29/96 157,225.62 163,788.50 321,014.12 Totals 823,570.95J/ 857,948.29e/ v4' 1,681,519.24 Remarks: Due to computational rounding totals may display +/- one cent. TAXPAYER IS BEING TAXED AS A DOMICILIARY OF NYS FOR 1992. PER AUDIT, TAXPAYER CHANGED NY DOMICILE TO FLORIDA EFFECTIVE 6/30/93. Consent to Findings: Pursuant to Section 681(F) of the Tax Law, the restrictions provided in Section 681(C) of the lax law are waived, and consent is given to the assessment/collection of tho above deficiency(s), together with interest thereon, as provided by Lew, and the overassessment(s) is accepted as correct. We understand that these field audit adjustments are subject to review. Signature Date Signature Date Id/ EFTA00727500

AU251.1 Page 2 JEFFREY EPSTEIN 358 EL BRILLO NAY PALM BEACH FL 33480 State of New York - Department of Taxation and Finance Statement of Personal Income Tax Audit Changes Manhattan District Office Jurisdiction(s): New York State New York City Resident Status: Resident Resident Filing Status: 1 - Single Date Issued: 03/01/96 Case Number: X-555616246 2 F.R.N.: 47980540 S.S.N.: 090.44.3348 4 S.S.N.: • - Schedule of Audit Adjustments to New York Siete Taxable income Tax Period: 1992 N.Y. State Adjusted Gross Income per Return Audit Increases to N.Y. State Income Audit Decreases to N.Y. State Income Net Adjustments to N.Y. State Income Corrected Adjusted Gross Income Itemized Deductions per Return Audit Increases to Itemized Deductions Audit Decreases to Itemized Deductions Net Adjustments to Itemized Deductions N.Y. Itemized Deduction Adjustment Corrected Itemized Deductions After Modification Number of Exemptions Allowed: 0 • Value of Each Exemption: 1000 17,132,693.00 er.' 17,132,693.00 1,404,095.00 IY 0.00 702,047.50 Yr 702,047.50 0.00 Corrected N.Y. State Taxable Income 16,430,645.50 .P1 EFTA00727501

AU251.1 Page 3 JEFFREY EPSTE1N 358 EL GRILLO WAY PALM BEAU FL 33480 State of Hem York - Department of Taxation and Finance Statement of Personal 1ncome fax Audit Changes Manhattan District Office Jurisdiction(s): New York State New York City Resident Status: Resident Resident Fiting Status: 1 - Single Date Issued: 03/01/96 Case Number: X-555616246 2 F.R.N.: 47980540 S.S.N.: 090.44.3348 4 S.S.N.: • • Tax Period: 1992 New York New York City of total State City Tankers Liability Corrected Texable Ineens or Bast Recomputed Fox Liebility 16,430,645.50 vil: 16,430,645.50 1,293,913.33 15" 732,549.79 ét Credits Against Tax N.T.S. Resident Credit (iT•112R) (0) 35,945.00 W." Total Credits Against Tax Other Taxas or Disaltowed Credits Total Additional Tims or Ofsallowed Credits Corrected tax liabitity 35,945.00 V 0.00 1,257,968.33 W 732,549.79 Dr ( k) 47'44; VI ar' amail TV» 3,4/ t 11/ EFTA00727502