EXHIBIT (a)(4)
INSTRUCTIONS FOR COMPLETING THE LETTER OF TRANSMITTAL
1. YOUR TENDER. Please check the applicable box to indicate the number of
Interests you are tendering and, if you are not tendering all of your Interests,
insert the number of Interests you wish to tender. Be sure to complete the
Transmittal Letter and return it to us:
BERKSHIRE INCOME REALTY, INC.
ONE BEACON STREET, SUITE 1500
BOSTON, MA 02108
ATTN: KRUPP FUNDS GROUP
2. INVESTOR INFORMATION. Print the exact name(s) in which the Preferred
Shares are to be registered. This would be the Investor's name in the case of
taxable entities. For IRA accounts, registration would be in the name of the
trustee for the benefit of (FBO) the IRA account holder (example, Community
Savings & Loan, Trustee FBO John R. Doe, IRA). Registration for other retirement
plans would be in the plan name.
When completing the taxpayer identification or social security
number, if the account is in more than one name, the number of the first
Investor should be listed. IRAs and other retirement plans should provide the
taxpayer identification number and the social security number of the IRA account
holder. A trust should provide its taxpayer identification number. Uniform Gifts
to Minors should provide the minor's social security number. All other Investors
should provide the appropriate social security number or taxpayer identification
number.
3. ADDITIONAL MAILING ADDRESS. This section should be completed only if
the Interests are held through a trust company and the Investor wants to receive
investor mailings at a separate address. This is recommended for IRA accounts so
that the beneficiary can receive informational mailings at a home address.
4. DIRECT DEPOSIT ADDRESS. This section should be left blank if the form
of ownership is an IRA. It should be completed only if the Investor wishes
distribution checks directly deposited to a bank or cash management account.
Please specify checking or savings account and include a voided check or savings
deposit slip to verify account numbers.
5. FORM OF OWNERSHIP. Check applicable box. To such extent as may be
requested by BIR, any partner, trustee, agent or other person acting in a
representative or fiduciary capacity must furnish either: (i) an opinion of
counsel, acceptable to BIR, that such representative or fiduciary has power and
authority to execute the Transmittal Letter; or (ii) a copy of the partnership
agreement, trust agreement (including family trust agreements), power of
attorney or other document pursuant to which such person acts in a
representative or fiduciary capacity. Whether or not BIR requests to examine
such supporting documents shall in no manner affect the representation and
warranty as to due
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authority made by the representative or fiduciary on behalf of the Investor on
the Transmittal Letter.
6. INVESTOR SIGNATURES. If applicable, the signature of an IRA or other
retirement plan trustee is required. The signature of the beneficiary is not
necessary. All other Investors must sign and date the Transmittal Letter. If
ownership is held by joint tenants with rights of survivorship, tenants in
common, tenants by the entirety or community property, then all parties must
sign and date the Transmittal Letter.
INSTRUCTIONS FOR COMPLETING THE SUBSTITUTE FORM W-9
Under federal income tax law, each Investor who surrenders
Interests under the Offer generally is required to provide to BIR its correct
Taxpayer Identification Number ("TIN") on Substitute Form W-9, which is included
in the Letter of Transmittal, and to certify, under penalties of perjury, that
the number is correct and that the Investor is not subject to backup withholding
of federal income tax. If BIR is not provided with the correct TIN, the Investor
may be subject to a $50 penalty imposed by the Internal Revenue Service (the
"IRS"). In addition, failure to provide the information on Substitute Form W-9
may subject the Investor to federal income tax withholding on payments made to
the Investor by BIR.
If the Investor has been notified by the IRS that the Investor
is subject to backup withholding, the Investor must cross out item (2) of the
certification box of the Substitute Form W-9, unless the Investor has since been
notified by the IRS that the Investor is no longer subject to backup
withholding. If backup withholding applies, BIR is required to withhold a
portion, determined according to the applicable backup withholding rate, of any
reportable payments made to the Investor. Backup withholding is not an
additional tax. Rather, the tax liability of persons subject to backup
withholding will be reduced by the amount of tax withheld. If withholding
results in an overpayment of taxes, a refund may be obtained from the IRS
provided that required information is furnished to the IRS.
The TIN for an individual United States citizen or resident is
usually the individual's social security number. If the Investor has not been
issued a TIN and has applied for one or intends to apply for one in the near
future, the Investor should write "Applied For" in the space provided for the
TIN in Part 1 of the Substitute Form W-9 and sign and date the Substitute Form
W-9 and the Certificate of Awaiting Taxpayer Identification Number by signing
the Letter of Transmittal. If "Applied For" is written in Part 1 and BIR is not
provided with a TIN within 60 days, BIR will remit backup withhold taxes on all
reportable payments to the IRS until a TIN is provided to BIR.
Certain Investors (including, among others, all corporations
and certain foreign individuals) are not subject to backup withholding. In order
for a foreign Investor to qualify as an exempt recipient, the Investor must
submit a completed statement (generally, an Internal Revenue Service Form
W-8BEN), signed under penalties of perjury, attesting to the Investor's exempt
status. A Form W-8BEN (or such other Form W-8 as is appropriate) may be obtained
from Berkshire Income Realty, Inc. at One
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Beacon Street, Suite 1500, Boston, Massachusetts, 02108, telephone number (617)
523-7722. Other exempt Investors should furnish their TIN, check the box in Part
2 of the Substitute Form W-9, and sign, date and return the Letter of
Transmittal to BIR.
For additional instructions on how to fill out Substitute Form
W-9, refer to the following Guidelines for Certification of Taxpayer
Identification Number on Substitute Form W-9.
GUIDELINES FOR CERTIFICATION OF TAXPAYER - IDENTIFICATION
NUMBER ON SUBSTITUTE FORM W-9
GUIDELINES FOR DETERMINING THE PROPER IDENTIFICATION NUMBER TO GIVE THE PAYER.
- -- Social Security numbers have nine digits separated by two hyphens, e.g.,
000-00-000. Employer Identification numbers have nine digits separated by only
one hyphen, e.g., 00-0000000. The table below will help determine the number to
give the payer.
- ---------------------------------------------------------------------------------------------------
FOR THIS TYPE OF ACCOUNT: GIVE THE EMPLOYER IDENTIFICATION NUMBER OF - -
- ---------------------------------------------------------------------------------------------------
1. Sole proprietorship account The owner(4)
2. A valid trust, estate, or pension trust The legal entity (do not furnish the identifying
number of the personal representative or trustee
unless the legal entity itself is not designated
in the account title)(5)
3. Corporate account The corporation
4. Religious, charitable, or educational The organization
organization account
5. Partnership account held in the name of the The partnership
business
6. Association, club, or other tax-exempt The organization
organization
7. A broker or registered nominee The broker or nominee
8. Account with the Department of Agriculture The public entity
in the name of a public entity (such as a
State or local government, school district,
or prison) that receives agricultural
program payments
- --------------------------------------------------------------------------------
(1) List first and circle the name of the person whose number you furnish.
If only one person on a joint account has a social security number,
that person's name must be furnished.
(2) Circle the minor's name and furnish the minor's social security number.
(3) Circle the ward's, minor's or incompetent person's name and furnish
such person's social security number.
(4) Show the individual name of the owner. You may also enter your business
or "DBA" name. You may use either your social security number or your
employer identification number (if you have one).
(5) List first and circle the name of the legal trust, estate or pension
trust.
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NOTE: If no name is circled when there is more than one name, the number will
be considered to be that of the first name listed. If you are a
single-member limited liability company that is disregarded as an
entity separate from the owner for federal tax purposes, enter the
taxpayer identification number of the owner.
OBTAINING A NUMBER
If you do not have a taxpayer identification number or you do
not know your number, obtain Form SS-5, Application for a Social Security Number
Card (for individuals), or Form SS-4, Application for Employer Identification
Number (for businesses and all other entities), at an office of the Social
Security Administration or the Internal Revenue Service (the "IRS") and apply
for a number.
To complete Substitute Form W-9, if you do not have a taxpayer
identification number, write "Applied For" in the space of the taxpayer
identification number. Generally, you will then have 60 days to obtain a
taxpayer identification number and furnish it to the requester before amounts
withheld are remitted to the IRS. If the requester does not receive your
taxpayer identification number within 60 days, amounts withheld will be remitted
to the IRS and backup withholding, if applicable, will continue until you
furnish your taxpayer identification number to the requester.
PAYEES EXEMPT FROM BACKUP WITHHOLDING
Payees specifically exempted from backup withholding on ALL
payments include the following:
o An organization exempt from tax under section 501(a) of the
Internal Revenue Code, or an individual retirement plan.
o The United States or any wholly-owned agency or
instrumentality thereof.
o A State, the District of Columbia, a possession of the United
States, or any political subdivision or wholly-owned agency or
instrumentality thereof.
o A foreign government or a political subdivision, or
wholly-owned agency or instrumentality thereof.
o An international organization or any of its wholly-owned
agencies or instrumentalities.
Other payees that may be exempted from backup withholding include the following:
o A corporation.
o A financial institution.
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o A dealer in securities or commodities registered in the United
States, the District of Columbia, or a possession of the
United States.
o A real estate investment trust.
o A common trust fund operated by a bank under section 584(a) of
the Internal Revenue Code.
o An entity registered at all times during the tax year under
the Investment Company Act of 1940.
o A foreign central bank of issue.
o A trust exempt from tax under section 664(c) of the Internal
Revenue Code or described in section 4947(a)(1) of the
Internal Revenue Code.
o A futures commission merchant registered with the Commodity
Futures Trading Commission.
o A middleman known in the investment community as a nominee or
custodian.
Payments of dividends not generally subject to backup withholding include the
following:
o Payments to nonresident aliens subject to withholding under
section 1441 of the Internal Revenue Code.
o Payments made by certain foreign organizations.
Payments of interest not generally subject to backup withholding include the
following:
o Payments of interest on obligations issued by individuals.
NOTE: You may be subject to backup withholding if (i) this
interest is $600 or more, (ii) the interest is paid in the
course of the payer's trade or business and (iii) you have not
provided your correct taxpayer identification number to the
payer.
o Payments of tax-exempt interest (including exempt-interest
dividends under section 852 of the Internal Revenue Code).
o Payments described in section 6049(b)(5) of the Internal
Revenue Code and the corresponding regulations to nonresident
aliens.
o Payments made by certain foreign organizations.
EXEMPT PAYEES DESCRIBED ABOVE GENERALLY SHOULD FILE A
SUBSTITUTE FORM W-9 TO AVOID POSSIBLE ERRONEOUS BACKUP WITHHOLDING. FILE THIS
FORM WITH THE PAYER, FURNISH YOUR TAXPAYER IDENTIFICATION NUMBER, CHECK THE BOX
FOR
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"EXEMPT" ON THE FACE OF THE FORM, SIGN AND DATE THE FORM AND RETURN IT TO THE
PAYER.
If you are a nonresident alien or a foreign entity not subject
to backup withholding (including each such payee on a joint account), file a
completed Internal Revenue Service Form W-8BEN or other appropriate Form W-8, as
applicable, with the Payer.
Certain payments other than interest and dividends that are
not subject to information reporting are also not subject to backup withholding.
For details, see sections 6041, 6041A(a), 6045, 6050A and 6050N of the Internal
Revenue Code and the Treasury regulations thereunder.
PRIVACY ACT NOTICE. - - Section 6109 of the Internal Revenue
Code requires most recipients of dividends, interest, or other payments to give
taxpayer identification numbers to payers who must report the payments to the
IRS. The IRS uses the numbers for identification purposes and to help verify the
accuracy of your tax return. Payers must be given the numbers whether or not
recipients are required to file tax returns. Payers must generally withhold a
portion, determined according to the applicable backup withholding rate, of
taxable interest, dividends, and certain other payments to a payee who does not
furnish a taxpayer identification number to a payer. Certain penalties may also
apply.
PENALTIES
(1) PENALTY FOR FAILURE TO FURNISH TAXPAYER IDENTIFICATION NUMBER. - - If you
fail to furnish your taxpayer identification number to a payer, you are subject
to a penalty of $50 for each such failure unless your failure is due to
reasonable cause and not to willful neglect.
(2) CIVIL PENALTY FOR FALSE INFORMATION WITH RESPECT TO WITHHOLDING. - - If you
make a false statement with no reasonable basis which results in no imposition
of backup withholding, you are subject to a penalty of $500.
(3) CRIMINAL PENALTY FOR FALSIFYING INFORMATION. - - If you falsify
certifications or affirmations, you may be subject to criminal penalties
including fines and/or imprisonment.
FOR ADDITIONAL INFORMATION CONTACT
YOUR TAX CONSULTANT OR THE IRS
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