This worksheet describes some of the information needed to computer gain or loss, for income tax purposes, if you sell or otherwise dispose of your Verizon Communications Inc. (“Verizon”) common stock. We recommend that you keep this information with your tax records, and furnish it to your tax advisor to assist in preparing your income tax returns for any year in which you sell or otherwise dispose of shares.

Generally, gain or loss for income tax purposes is the difference between the “amount realized” (for example, in a simple sale transaction, the amount of money you receive) and your “tax basis” (for example, if you purchased your shares for cash, your purchase price).

The information described in this worksheet provides some, but not all, of the information needed to determine your tax basis. The other information which you need to determine your tax basis is particular to your individual situation, and your tax advisor can assist you in identifying this other information.

Note: There may be several methods for calculating your tax basis in your shares of Verizon common stock, and various factors which must be taken into account. It is beyond the scope of this worksheet to describe all of these methods and factors. This worksheet only applies to shares of common stock that were directly acquired in any of the companies listed in the worksheet, and does not apply to shares of common stock that were acquired upon the exercise of convertible preferred stock. The information in this worksheet is not intended as tax advice, but is intended only to assist you and your tax advisor in determining your tax basis in shares of Verizon stock. Please see the sections that begin with “Special Note” for additional information regarding apportionment of tax basis between Verizon common stock and both Idearc Inc. (“Idearc”) and FairPoint Communications, Inc. (“FairPoint”) common stock.

Major Events Overview

AT&T Divestiture

Shareowners received one share in each of the seven regional telephone companies for every ten shares of AT&T owned. Shareowners also had the option to purchase additional shares of Bell Atlantic Corporation (“Bell Atlantic”) or NYNEX Corporation (“NYNEX”) by selling shares in one or more of the other regional companies.

Record Date: December 31, 1983
Effective Date: January 1, 1984

Allocation Ratios:
Bell Atlantic 10.49%
NYNEX 9.84%

Bell Atlantic/NYNEX Stock Splits

In each of the following Bell Atlantic and NYNEX stock splits, shareowners received one additional share of stock for each share owned.

GTE Stock Dividends

In each stock dividend, shareholders of GTE Corporation (“GTE”) common stock received 1/2 additional share for each share of stock owned as of the record date.

GTE Stock Splits

In each stock split, shareholders of GTE common stock received one or more additional shares for each share of common stock owned as of the record date.

Contel Corporation (“Contel”) Stock Split

Merger of GTE and Contel

The merger of GTE and Contel became effective on March 14, 1991, with an exchange ratio of 1.27 shares of GTE Common Stock for each share of Contel common stock owned.

Merger of Bell Atlantic and NYNEX

The merger of Bell Atlantic and NYNEX became effective on August 14, 1997, with an exchange ratio of 0.768 shares of Bell Atlantic common stock for each share of NYNEX common stock owned. Fractional shares resulting from the merger were paid based on a price of $74.235 per share of Bell Atlantic common stock.

Merger of Bell Atlantic and GTE to form Verizon Communications

The merger of Bell Atlantic and GTE, became effective on June 30, 2000, with an exchange ratio of 1.22 shares of Bell Atlantic common stock for each share of GTE Common Stock owned. Fractional shares resulting from the merger were paid based on a price of $55.00 per share of Bell Atlantic common stock. Bell Atlantic subsequently changed its name to Verizon Communications Inc.

Merger of Verizon and MCI, Inc. (“MCI”)

The merger of Verizon and MCI became effective on January 6, 2006 with an exchange ratio of .5743 shares of Verizon common stock and a cash payment of $2.738 for each share of MCI common stock owned. Fractional shares resulting from the merger were paid based on a price of $31.35 per share of Verizon common stock. Please note that all shares of common stock of WorldCom Inc., MCI’s predecessor company, were cancelled and rendered null and void on April 20, 2004, the date that MCI emerged from bankruptcy.

Spin-off from Verizon of Idearc Inc.

The spin-off from Verizon of its domestic print and Internet yellow pages directories publishing operations into the company that was named Idearc Inc. became effective on November 20, 2006. In the distribution, each Verizon stockholder received one share of Idearc common stock for every 20 shares of Verizon common stock held as of 5:00 pm Eastern time on November 1, 2006. Fractional shares resulting from the spin-off were sold at a price of $27.17 per share of Idearc common stock.

Spin-off from Verizon of Northern New England Spinco Inc. (“Spinco”) and Merger with FairPoint Communications, Inc.

The spin-off from Verizon of its local exchange and related landline activities in Maine, New Hampshire and Vermont into Spinco and the subsequent merger of Spinco into FairPoint became effective on March 31, 2008. In the distribution, each Verizon stockholder received one share of FairPoint common stock for every 53.0245 shares of Verizon common stock held as of 5:00 pm Eastern time on March 7, 2008. Fractional shares resulting from the spin-off were sold at a price of $7.717 per share of FairPoint common stock.

Calculating Tax Basis in Verizon for Former Bell Atlantic Common Shareowners

Use the original tax basis of your Bell Atlantic common stock to complete one of the following sections based on the date you acquired or purchased that stock. If you acquired or purchased stock on more than one occasion, the tax basis must be determined separately for each transaction.

Verizon (formerly Bell Atlantic) Stock Acquired as a Result of the AT&T Divestiture

Verizon (formerly Bell Atlantic) Stock Acquired on or after January 1, 1984 through March 31, 1986

Verizon (formerly Bell Atlantic) Stock Acquired on or after April 1, 1986 through April 10, 1990

Verizon (formerly Bell Atlantic) Stock Acquired on or after April 11, 1990 through June 1, 1998

Verizon (formerly Bell Atlantic) Stock Acquired on or after June 2, 1998 through November 1, 2006

Verizon Stock Acquired on or after November 2, 2006 through March 31, 2008

Calculating Tax Basis in Verizon for Former NYNEX Common Shareowners

Use the original tax basis of your NYNEX common stock to complete one of the following sections based on the date you acquired or purchased that stock. If you acquired or purchased stock on more than one occasion, the tax basis must be determined separately for each transaction.

NYNEX Stock Acquired as a Result of the AT&T Divestiture

NYNEX Stock Acquired on or after January 1, 1984 through and including March 31, 1986

NYNEX Stock Acquired on or after April 1, 1986 through and including August 16, 1993

NYNEX Stock Acquired on or after August 17, 1993 through and including August 14, 1997

Calculating Tax Basis in Verizon for Former GTE Common Shareowners

Use the original tax basis of your GTE common stock to complete one of the following sections based on the date you acquired or purchased that stock. If you acquired or purchased GTE stock on more than one occasion, the tax basis must be determined separately for each acquisition.

GTE Stock Acquired through and including April 22, 1954

GTE Stock Acquired after April 22, 1954 through and including June 3, 1955

GTE Stock Acquired after June 3, 1955 through and including April 20, 1960

GTE Stock Acquired after April 20, 1960 through and including January 14, 1987

GTE Stock Acquired after January 14, 1987 through and including May 23, 1990

GTE Stock Acquired after May 23, 1990 through and including June 30, 2000

Calculating Tax Basis in Verizon for Former Contel Common Shareowners

Use the original tax basis of your Contel common stock to complete one of the following sections based on the date you acquired or purchased that stock. If you acquired or purchased Contel stock on more than one occasion, the tax basis must be determined separately for each acquisition.

Contel stock acquired through and including August 31, 1989

Contel stock acquired after August 31, 1989 through and including March 14, 1991

Calculating Tax Basis in Verizon for Former MCI Shareowners

Use the original tax basis of your MCI stock to complete the following section based on the date you acquired or purchased that stock. If you acquired or purchased MCI stock on more than one occasion, the tax basis must be determined separately for each acquisition.

MCI Stock Acquired on or after April 20, 2004 through and including January 6, 2006

Enter the original aggregate tax basis of MCI stock in (A)			__________ (A)
Enter merger cash consideration (excluding cash received in lieu of fractional Verizon shares) in (B)			__________ (B)
Subtract (B) from (A); enter the difference in (C)			__________ (C)
Enter gain recognized, if any, in connection with the transaction (excluding gain associated with cash received in lieu of fractional shares) in (D) 1			__________ (D)
Add (C) and (D) and enter the sum in (E) The new aggregate basis in Verizon stock, before basis reduction for fractional share cash, equals (E).			__________ (E)
Fractional Share Cash Adjustment:
Enter cash received for fractional shares in (F)			__________ (F)
The basis reduction for fractional share cash equals (F), divided by [(1) the number of shares of MCI exchanged times (2) .5743 times (3) $31.35], times (E); enter result in (G) (F)  x  (E) [# of shares of MCI exchanged x .5743 x $31.35]			__________ (G)
Subtract (G) from (E); difference is the new aggregate basis in Verizon stock; enter in (H)			__________ (H)
Idearc spin-off – Multiply (H) by .96334; enter in (I)			__________ (I)
FairPoint spin-off – Multiply (I) by .995370; enter in (J)			__________ (J)
Your new basis in Verizon = (J)

If you have different tax bases in different blocks of MCI stock (e.g., if you acquired or purchased MCI stock on more than one occasion or at different prices), consult your tax advisor as to the calculation of gain recognized on the receipt of cash for fractional shares and how the basis reduction for fractional share cash should be allocated among the blocks of MCI shares exchanged in the merger.

¹ For the amount of gain recognized in connection with the MCI transaction please refer to the section in the Proxy Statement and Prospectus dated August 31, 2005 beginning on page 114 entitled “Material United States Federal Income Tax Considerations-Original Structure and Alternative Merger-Original Structure”.

Special Note: Different Methods for Calculating Tax Basis in Verizon Following the Spin-off of Idearc

Shareholders of Verizon who received shares of Idearc in the spin-off are required to allocate their aggregate tax basis in their Verizon shares between the Verizon shares and the Idearc shares that they received in the spin-off in proportion to the relative fair market values of their Verizon and Idearc shares (including any cash received in lieu of fractional shares of Idearc). The distribution ratio in the spin-off was one share of Idearc for every twenty shares of Verizon. Verizon stock acquired after November 17, 2006 doers not require an adjustment to tax basis for the Idearc spin-off.

U.S. federal income tax law does not specifically provide a method for determining the fair market values of the Verizon shares and Idearc shares. There are several potential methods for determining the fair market values of the Verizon shares and Idearc shares, including:

1. the opening trading prices of Verizon and Idearc on the first regular trading day of the Idearc shares ($34.82 and $26.50, respectively, on November 20, 2006);
2. the average of the high and low trading prices of the Verizon and Idearc shares on the first regular trading day of the Idearc shares ($34.90 and $27.57, respectively, on November 20, 2006); and
3. the closing trading prices of Verizon and Idearc on the first regular trading day of the Idearc shares ($34.67 and $28.20, respectively, on November 20, 2006).

Verizon is providing an example below of how to allocate a shareholder’s aggregate tax basis in Verizon common stock between his or her shares of Verizon and Idearc. This example is provided solely for illustrative purposes and as a convenience because shareholders and their tax advisors may find it useful when establishing their specific tax positions. Please remember that Verizon does not provide its shareholders with tax advice, and this notice is not intended to provide tax advice. Verizon encourages its shareholders to consult with their own tax advisors with their specific questions pertaining to their own tax positions including the application of the tax basis allocation rules to different blocks of Verizon shares acquired at different times and/or at different prices.

Example

The following example is based on the first of the three alternatives above. It assumes that a Verizon shareholder owned 100 shares of Verizon that had all been acquired at the same time and for the same price of $30.00 per share, for an aggregate tax basis of $3,000.00 This shareholder received five shares of Idearc in the spin-off. Based on the calculations below using the first of the three alternatives above, the shareholder would allocate $2,890.02 of the original $3,000.00 aggregate tax basis to Verizon shares and $109.98 of the original $3,000.00 aggregate tax basis to Idearc shares.

Special Note: Different methods for Calculating Tax Basis for Verizon and FairPoint Following the Spin-off and Subsequent Merger of Spinco into FairPoint

Shareholders of Verizon who received shares of FairPoint as a result of the spin-off of Spinco and subsequent merger of the Spinco into FairPoint are required to allocate their aggregate tax basis in their Verizon shares between the Verizon shares and the FairPoint shares that they received in the spin-off / merger in proportion to the relative fair market values of their Verizon and FairPoint shares (including any cash received in lieu of fractional shares of FairPoint). The distribution ratio in the spin-off was 1 share of FairPoint for 53.0245 shares of Verizon. Verizon stock acquired after March 31, 2008 does not require an adjustment to tax basis for this transaction.

U.S. federal income tax law does not specifically provide a method for determining the fair market values of the Verizon and FairPoint shares. There are several potential methods for determining the fair market values of the Verizon and FairPoint shares, including:

1. the opening trading prices of Verizon and FairPoint on the New York Stock Exchange (“NYSE”) on the first regular trading day (April 1, 2008) following the spin-off / merger; and
2. the average of the high and low trading prices of the Verizon and FairPoint shares on the NYSE on the first regular trading following the spin-off / merger; and
3. the closing trading prices of Verizon and FairPoint on the NYSE on the first regular trading day following the spin-off / merger.

Verizon is providing an example below of how to allocate a shareholder’s aggregate tax basis in Verizon common stock between his or her shares of Verizon and FairPoint. This example is provided solely for illustrative purposes and as a convenience because shareholders and their tax advisors may find it useful when establishing their specific tax positions. Please remember that Verizon does not provide its shareholders with tax advice, and this notice is not intended to provide tax advice. Verizon encourages its shareholders to consult with their own tax advisors with their specific questions pertaining to their own tax positions including the application of the tax basis allocation rules to different blocks of Verizon shares acquired at different times and/or at different prices.

Example

The following example is based on the first of the three alternatives above. It assumes that a Verizon shareholder owned 120 shares of Verizon that had all been acquired at the same time and for the same price of $30.00 per share, for an aggregate tax basis of $3,600.00. This shareholder received 2 shares of FairPoint in the spin-off/merger and cash in lieu (“CIL”) of .263 fractional share of FairPoint. Based on the calculations below using the first of the three alternatives above, the shareholder would allocate $3,583.33 of the original $3,600.00 aggregate tax basis to Verizon shares, $14.73 of the original $3,600.00 aggregate tax basis to FairPoint shares and the remaining $1.94 of the original $3,600.00 aggregate tax basis to the .263 fractional share of FairPoint sold for CIL of fractional shares.

To ensure compliance with Treasury Department regulations, we advise you that the information contained herein was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

This information represents our understanding of existing federal income tax law and regulations and does not constitute tax advice. It does not purport to be complete or to describe tax consequence that may apply to particular categories of shareowners. Please consult your tax advisor for further assistance.