January 6, 2003
1:00pm PT

Members in attendance

• Gerald Gensiejewski, Jr.
• James Griffin
• James Grimaldi
• Lawrence Lexow
• Chris Lowe
• Gregory Maciulla
• Robert Meldman
• Diane Mignano
• Francis Paolone
• Paul Smathers
• Sherry Whah
• Lillian Woo
• Judi Nicholas (acting DFO)

TAP Staff

• Nancy Ferree - TAP Manager - Plantation, FL
• Sallie Chavez - Analyst - Plantation, FL

Guests

• Nina Olson - National Taxpayer Advocate
• Arlene Kay - Director, Systemic Advocacy
• Deryle Temple - TAP Program Manager
• Dan Rinke - CCH Reporter

Panel Chair welcomed everyone and wished everyone a Happy New Year.

Roll call
Roll was taken and the quorum is met.

Review of Minutes
The minutes of the December 5, 2002 meeting was reviewed and by consensus was accepted as written.

National Licensing of Practitioners
Sherry Whah reported on the feedback she has received so far on the surveys she has received back. She has received 16 responses. Of those 16 responses, 15 used professional preparers and were satisfied with the preparers. Two of the respondents stated that they received notices. One said the error was the preparer's fault and the other stated incorrect information was given to the preparer. All those responded would support national licensing.

Sherry said she has talked to several citizen groups and no one at any of these meetings objected to the national licensing. She talked to a group of 102 professional preparers and out of this group only two objected.

Larry Lexow said he has spoken to practitioners in his area and most support the idea. The only question they have is who will regulate the program and support it?

Sherry stated that Oregon has had the licensing program for years and it is self-supported by the fees charged.

It was mentioned that most of the issues are covered in the National Taxpayer Advocate's Report to Congress.

Deryle Temple commented that Nina Olson would be joining the conference call in a few minutes and she would like to address the issues covered in her report. The chair welcomed Deryle to the TAP.

One of the committee members brought up a question about EIN processing and a story about someone who requested an EIN and was contacted by both campuses concerning the EIN. He is concerned that the EIN processing is not centralized.

One of the committee members questioned how this program would be funded. Someone answered that Nina Olson's report indicated it would be self-funded by fees.

Sherry Whah reviewed the licensing process in the State of Oregon.

One of the committee members brought up education of children. He thinks that the school should have a class about "what it means to pay taxes". This could help in some people preparing their own tax return. Someone else mentioned VITA and how this program helps the low-income taxpayers.

Nina Olson joined the conference call. She stated that VITA would not take away from the paid preparers. As far as licensing is concerned, a specific proposal is needed and the only question is whether it should be state or federally regulated. Nina would like the program to be complacent but not intrusive. She is now waiting for comments from tax administrators.

Chris Lowe asked Nina where the Ad Hoc Committee could be useful in supporting this issue? She said she would like to see the committee gather responses from citizens on what they are looking for in a tax preparer. She suggested contacting USA Today and working with them on a poll.

There is now a program where some low-income taxpayers can file electronic returns free online (through FirstFed). More research needs to be conducted on why low-income taxpayers go to paid preparers. The reason may be because they are confused.

The licensing proposal in the Annual Report to Congress would require preparers to take a refresher exam each year to be re-certified. It would also require a great deal of "paid advertising" to get the word out about this new process.

Chris Lowe asked if H & R Block has "bought" into the program. Nina Olson said that originally they were opposed but now they are more comfortable.

Again it was suggested that children be educated on the taxing process. Nina said she would support such a recommendation. The IRS has classes available for the schools and she would like to revive it. She said she would support and take the proposal to the Secretary of Education if this is what the committee wants. She also stated that each committee member could go to each state board of education to support such a class. One of the committee members stated that if we teach kids they won't need paid preparers.

Nina said there was a report by the Brookings Institute at Brooking.org on Refund Anticipation Loans. There is more information out there. TEC has additional research on this subject. Greg Maciulla said he would like to have this information. Judi Nicholas said she will have Anne Gruber provide this information for Greg. There is also information on the IRS web site.

Nina was asked about specifications for referring taxpayers to TAS. She explained significant hardship. She is requesting that the definition for significant hardship be rewritten to include more situations.

A committee member brought up the GAO report on inappropriate levies. Nina said that if the committee thinks this is appropriate they should work on it. She would like to have a conference call with the committee (before January 27) about Private Debt Contractors. She would like to have their comments on this program.

Chris thanked Nina for taking her time to join the panel on the conference call today.

Sherry will get together with the sub-committee and they will rewrite the survey.

Committee Comments
There were no comments.

Meeting was adjourned.