User Manual

Tax Management System

Version <1.01> - <7/10/03>

A signed copy of this document must be kept in the Project Master File.

Using this Manual

<This User Manual is provided as a sample format for your reference. Use this or other templates as necessary depending on your needs. Just ensure the key items referenced in the SDM template are addressed in your document. If you choose to use this template you will need to delete the approval page after the manual has been approved and create your own cover sheet. You should also delete the SDM references in the headers and footers etc. Contact the Technical Writing Group for further assistance and alternatives for writing and formatting this documentation.>

This manual is created by the business unit and is intended for the business user as an operational guide to the <system name> system.

<Note any additional support documentation that are also available for reference. >

Note: If you have feedback on the design of this template, please contact the Software Process Engineering Group in Information Systems. Your input is most welcome.

Revision History

All revisions to this document must be recorded below.

Table of Contents

To update the Table of Contents after adding text, insert your cursor in the text below and press F9.

System Description.

Business Functionality

Procedures and guidelines

Using the system

System Description.

TMS is a management application for W2G Tax forms. It tracks recipient information winning wagers such as Bingo, Slots etc and creates a W2G Tax form for the recipient. At the end of the year the system creates a electronic file for the IRS for tax reporting purposes.

Business Functionality

The users of the system can enter a recipient into the system and associate the wager won. The system then prints out a W-2G Tax form for the recipient and at the end of the year reports the recipient and his winnings to the IRS. The key users for the application are Casino, Operations Accounting, Reservation Administration, Casino Head Cashier and Casino managers on the ships.

Procedures and Guidelines

Introduction

The IRS requires casinos to report all U.S. Citizen/Resident jackpot (including bingo payments) winners of $1200 or more. In 2001, the Casino Accounting Director introduced a system of receiving information from the ships via fax and e-mail, and entering the required information in the TMS W2-G reporting system.

Now he would like this information to be entered directly into the TMS W2-G system on board the ships and a tax form issued to the guest before they disembark the vessel.

This information should be obtained from the Guest at his/her convenience before the jackpot is paid. The in-house Jackpot information form should be completed only if the same individual wins a second or subsequent jackpot of $ 1200.00 or more. The Guest should not be asked to complete this form again. The Head Cashier/Manager will be responsible to complete the TMS W2-G form, containing the details from the original Jackpot information form and its corresponding jackpot voucher.

Tax information required for a bingo payment over $1,200.00 will be collected by the dealer/host paying the bingo winner. This information will be collected before any winnings are paid to the guest and will be recorded on the Jackpot information form making a note of the amount of the bingo payment on the form.

USC's And ARC's are subject to tax on their worldwide income. The tax laws provide relief from various income items in the form of exemptions/deduction/tax credits, etc. It is a taxpayer's responsibility to report his/her income and lawful deductions on their annual tax return. Gambling losses may be offset against winnings to the extent of the winnings; however, the Company has no responsibility to provide information about losses.

Note that an accumulated credit hand pay using a jackpot payout slip DOES NOT qualify for tax reporting. Only actual, individual winning jackpot combinations, which yield a jackpot of $ 1200.00 or more, are reportable.

Therefore, please make sure accumulated credit payouts are identified as " ACC - NOT A JACKPOT "

Voucher Issued for winning Jackpot Combination of $ 1200.00 or more

When a player approaches the Main Cage Cashier to collect payment for their jackpot, they must bring with them the white copy of the Jackpot form. USC's and ARC's who are awaiting payment for a winning Jackpot combination of $ 1200.00 or more must also bring the completed "Jackpot Information" sheet.

The Cashier shall:

• Clarify whether the jackpot form is supporting a winning jackpot combination or whether it is merely a payment of accumulated credits.
• If the payment is a winning jackpot combination, verify that the Guest has completed all relevant parts of the Jackpot Information sheet. If a Cashier is in any doubt as to clarity of information, a Manager should be called.

The following information needs to be obtained from the Guest:

• Name
• Home mailing address
• Social Security Number
• Date of birth

• Determine whether the Guest is a USC/ARC or a foreign national. Foreign nationals are not required to complete the Jackpot Information sheet as they are not liable for US taxes
• Match the corresponding pink copy of the Jackpot with the original, white form.
• Examine the white copy for any alterations.
• The Cashier will have the player sign the back of the pink form and shall then compare this signature with that of the original copy.
• Having paid the guest the required amount, the Cashier will retain both the white and pink copies of the jackpot form for use when balancing their bank.
• It is important that the cashier inform the guest that they will receive the W-2G tax form on the final day of the cruise. If any of the information they have provided is incorrect they can contact the Information desk before disembarking and we will be able to reprint a new form for them.

Backup Withholding

If the winner does not cooperate in self-identification (i.e. if the winner refuses to complete a Jackpot Information sheet), then the IRS requires that we withhold their share of the total Jackpot amounts.

The backup withholding rates which apply are as follow:

• 29% for 2004 and 2005
• 28% for 2006

In such a case the Cashier shall expense the entire Jackpot as per normal and set up a Front Money Slip of the required amount withheld (similar to Royal Flush)

The Guest will sign the Front Money Slip in addition to the back of the pink Jackpot receipt and shall receive from the Cashier the white copy of the Front Money Deposit Slip as proof that taxes were paid in addition to the amount in cash received for the Jackpot, net of the taxes.

The full Jackpot will be recorded in the CFS and IVERSON only, NOT into the TMS W-2G system. The shoreside office will handle this reporting.

Front Money slips are recorded as a negative amount on the Cashier's Closing Bank Summary to offset the portion of the Jackpot amount withheld from the Guest on behalf of the I.R.S. At voyage end, the Head Cashier will deposit amounts withheld, referencing account CCL01-00-00004-243001.

Amounts withheld are deposited into a special bank account and transmitted to I.R.S within 15 days.

It is essential that any instances requiring backup withholding be communicated to the shoreside casino office immediately so a timely deposit to the bank can be made (to avoid late penalty).

2. Using the TMS system

The TMS W-2G System was conceived and designed for the purpose of reducing the amount of emails that are sent to the Miami Executive Office and to aid the Miami Executive office in preparing the related tax forms.

The system gives immediate access to certain pieces of information.

We need to ensure that the information being reported is both legible and also correctly completed in full on presentation of the Jackpot information sheet. The Cashier, Technician and Manager must clarify that the written material is completely legible before any funds are dispensed. In the event any information is unclear, it will be necessary for the employee to have a Guest communicate the information again, and for the employee to clarify the original written material.

Signing on:

Double click the TMS icon on your desktop. You will not need to enter a UserId and password as the system would validate your NT Login ID.

Click on Tools - Recipient Profiles

3) You would see the form where you enter /edit recipient information.

1- Guest - Last Name: First Name:

- Street Address (Including apt. no)

- City:

4- State: Click the dropdown arrow.

Standard State and U.S. Territory Abbreviations

Military "state" Abbreviations

Armed Forces Americas (Except Canada)  AA

Armed Forces Europe, Middle East and Canada AE

Armed Forces Pacific  AP

- Zip code: ZIP is the acronym for Zone Improvement Plan. ZIP identifies a specific geographic delivery area.

The first field should contain 5 numbers. Some people know their sub-code which is 4 numbers after the dash.

- Tax Year: Click on the appropriate year the wager was won. The IRS works on a calendar year basis.

7- Tax ID. Social Security is a government program that helps workers and retired workers and their families achieve a degree of economic security. Social Security also called Social Insurance, provides cash payments to help replace income lost as a result of retirement, unemployment, disability or death. The program also helps pay the of medical care for people age 65 or older and for some disabled workers. About 38 million people in the United States - about one in six - receive social security benefits.

Workers in jobs covered by Social Security must have a Social Security card. Each card has a number that enables the Social Security Administration to keep a record of the Social Security taxes paid by each worker. Any United States citizens may apply for a Social Security car at a district Social Security office.

Social Security Numbers are nine numbers and appear as follows: 435-21-3787

8- Gross Winnings: Amount of the Jackpot. Multiple Jackpots on a single cruise should be added as one amount.

9-Type of Wager: Select from the drop down box. Select " Slot Machine" for all jackpots and "Bingo" for all bingo winnings

10-First ID: (same as number 7)

11- Date Won: Date the wager was won. (Calendar Date)

12-Cashier: Ship initials (i.e. HO)

Once the Head Cashier enters the information correctly, he/she will execute the Insert button to save the information.

The various other features are:

Clear = Clears the recipient form

Search = Access to see the information that is already there. (You would need to enter either tax id or name to search)

Update = Access to make changes in case you made a mistake before.

Insert = After you enter the player information (last name, First name SS # etc) you have to click on insert in order to save information

Delete = Delete

Audit= To see history of changes to the recipient information

Close=Closes the recipient form.

Corrected=Ignore this feature (shipboard users)

Printing:

For printing the recipient form you would need to go to File - Print . The form would print to the default printer on the users desktop.

AT THE END OF THE VOYAGE

Upon close of the voyage, the Head Cashier will be responsible to print the IRS Form W-2G. The closing cashier will then deliver these forms on the final night of the voyage to the guest cabins. On those ships where the Head Cashier is not present during the final evening of the voyage the manager will have access to this system and can complete this task.

In the event that any of the information on the W-2G form is incorrect, the Guest may contact the information desk who will in turn beep the Head Cashier to research the situation and modify and reprint the form if necessary. Do not check the "CORRECTED" box. That is for forms previously sent to the IRS.

W-2G Casino Reporting Problems. "CCL SHIPS"

We started using the Citrix system for almost a year. Since this system is connected directly with shoreside via satellite. We need to keep in mind that some problems are occurring. Casino users report all PC issues to the computer officer onboard their ship. If the issue cannot be resolved onboard the computer officer will send a problem report to our helpdesk at the carnival office.

Helpdesk have code to help us to resolve all the problems as follows:

P3 (schedule work)

Satellite connection is down

Cannot connect to Citrix Server

Application not working

"letmsch" is locked out

Printer problems "Run-time error '482' - Printer Error.

Printer problems - very slow to print the reports.

The Head cashier need to notify the I.S. Manager of the problem, please specify the problem and the code. After that the I.S. Manager need to open a clarify case number to investigate the problem. We try to create a new system to help the users on shipboard as quick as possible.

Weekends. Advice the winners that the form will be printed and mailed ASAP after your problem is fixed; you can forward the print forms to us for mailing.

W-2G Casino Reporting Problems. "Princess & Holland American Line"

Since this system is connected directly with shore side via satellite, we need to keep in mind that some problems may occur. Casino users should report all PC issues to the computer officer onboard their ship. If the issue cannot be resolved onboard, the computer officer will then need to email us at casinoaccounting@carnival.com

Typical problems that occur are:

Satellite connection is down

Cannot connect to Citrix Server

Application not working

Account is locked out

Printer problems "Run-time error '482' - Printer Error.

Printer problems - very slow to print the reports.

All problems reported for the TMS system should be emailed to the following email address:

casinoaccounting@carnival.com . Casino shore side here at Carnival would co-ordinate the call with the help desk at Carnival. Shore side will prefer if everyone is using the code P3. P3 (schedule work)

Weekends. Advice the winners that the form will be printed and mailed ASAP after your problem is fixed; you can forward the print forms to us for mailing.

Thank you very much for your cooperation.