JUNE 6, 2003
8:30 AM CDT
EDWARDSVILLE, ILLINOIS

ATTENDEES:

• JAMES GRIFFIN
• JAMES GRIMALDI
• LAWRENCE LEXOW
• CHRIS LOWE
• GREGORY MACIULLA
• ROBERT MELDMAN
• DIANE MIGNANO
• FRANCIS (BUCK) PAOLONE
• PAUL SMATHERS
• SHERRY WHAH
• LILLIAN WOO
• JUDI NICHOLAS, DESIGNATED FEDERAL OFFICIAL

ABSENT:

• LARRY BARNARD
• GERALD GENSIEJEWSKI, JR.
• CALVIN JOHNSON

STAFF:

• ANNE GRUBER

OPENING:
Judi Nicholas, as the Designated Federal Official, officially opened the meeting and handed it over to Chris Lowe, as Chairperson, to conduct business. Chris welcomed everyone to the first face-to-face meeting and especially thanked Larry Lexow for arranging the meeting space on the campus of Southern Illinois University Edwardsville. He asked Larry to give a brief introduction, which he did, describing the beautiful, 2660-acre campus and the B.Barnard Birger building where the meeting was being held. Everyone introduced themselves in lieu of a roll call.

REPORTS:
Chris then talked about the Joint Committee meeting that was held on May 2nd and 3rd. At the meeting, the Chairs of all the committees reviewed the TAP Charter and concluded that it was not within the TAP guidelines to pursue legislative matters. Nina Olson, the National Taxpayer Advocate (NTA), wrote a letter to Tom Seuntjens, the TAP Chairman, that was shared with the whole panel, in which she said that there is no authority for TAP or TAP members, in their capacity as TAP members, to directly present views to Congress. The Joint Committee will forward final recommendations and other appropriate documents to the National Taxpayer Advocate, the Commissioner of the Internal Revenue, and the Secretary of the Treasury. However, to the extent that the panel has issues or concerns that it feels requires legislative intervention, such issues should be raised to the office of the Executive Director for Systemic Advocacy within the Taxpayer Advocate Service and the issue will be researched, developed, and considered for possible submission in the annual report to Congress.

Chris went over the different functions of the Area Committees and the Issue Committees, mainly that the Issue Committee work the issue and its recommendations do not go through the Joint Committee. The Area Committees are the place to initiate grass-roots issues and issues that are procedural and national in scope progress to the Joint Committee for discussion and disposition.

It was just announced that the annual meeting for the entire Panel will be October 2, 3, and 4 in Washington D.C. Chris asked everyone to save the date. And, since a year will have gone by, the leadership of the Ad Hoc committee should be re-examined. The time commitment has proven to be immense and discussion centered on the fact that TAP members each have two committees to work on.

The next topic for discussion was Financial Literacy. Greg Maciulla, Mario Burgos from New Mexico, and Dick Greenberg from Illinois have all been working on projects to promote not only financial literacy, but also income tax literacy. The IRS has a wonderful website called Understanding Taxes for both teachers and students, but it seems to be under-advertised. Greg suggested that the committee do something to get the NTA involved, perhaps even including the topic in her next Report to Congress. Greg stressed that it is not our job to come up with the method to promote tax literacy, but simply to get the problem acknowledged. He suggested that the Panel write letters to our three contacts, i.e. the NTA, the IRS Commissioner, and the Secretary of Treasury. Statistics should be included in the letter to show that high school is the time to start training in preparing tax forms. The letter should come from TAP and be signed by the Chair, Tom Seuntjens. ACTION ITEM: Chris, Greg, Judi, and Anne will get together this afternoon and compose the letter. Bob Meldman pointed out that it is important to get the letter "endorsed" by the TAP, we are not asking the Joint Committee to write it.

BREAK

NATIONAL LICENSING OF PRACTITIONERS REPORT:
Sherry Whah reported on the survey that the sub-committee sent out to all the members of TAP regarding the licensing of tax practitioners. She said that we needed to complete the information we promised to send the NTA when the survey was concluded on May 13th. Also, the members of the TAP panel have asked information on the results of the survey. Out of 96 possible replies, 61 responses were received. One, committee member observed that although 61 replies seems like a good response, considering that the panel consists of people who are supposedly interested in improving the tax system, it probably should have been better. ACTION ITEM: Sherry will write a letter to the members of the panel to thank them for their support and to tell them the results of the survey. She will post this letter on TAPSpeak for all to see.

Discussion continued on the question of whether the NTA needed any more information. Had Nina Olson even mentioned TAP's assistance when she reported to Congress? Is this a dead issue? The IRS has already published its position against licensing. The committee decided to terminate their involvement, but a final report was still due presenting both sides. ACTION ITEM: Sherry, Bob, Lillian Woo, and Paul Smathers, will write the final minority/majority report to send to the NTA regarding TAP's position on National Licensing of Practitioners. ACTION ITEM: Anne will attempt to find statistics on error rates by states. And she will contact Ken Drexler to ask where this issue stands as far as the NTA.

MARKETING REPORT:
Buck Paolone reported on the results of his meeting with the Luckie public relations firm. They made several suggestions regarding methods and products to get the TAP name out to the public. Judi commented that it is easy to get products made at the IRS in-house print shop. Once the strategy and key message are developed, it is easy to get the products. Nametags, tri-folds, a TAP logo, a tagline, sample letters to the editor, are all items that have been developed in the past. Judi asked if the committee liked the Speak Up tagline. Comments were favorable. There was a great deal of discussion about the need to use a consultant to assist with developing the key messages, tag line, logo etc. A consultant developed the CAP marketing and after some discussion it was decided to review those materials and determine if they could be used with some slight modifications.

However, no one liked the Taxpayer Advocacy name because they did not feel it conveys what they are charged with. They liked the initials and would, like to keep TAP. Ultimately the committee members thought that "Treasury Advisory Panel" would be a better name and less confusing to the public. Now most of the calls that come on the toll-free telephone line are in error. Taxpayers want the Taxpayer Advocate Service and instead call or are referred to Taxpayer Advocacy Panel. It was decided to request a name change by discussing the idea with Tom Seuntjens and writing a letter to the NTA, the IRS Commissioner, and the Secretary of the Treasury. ACTION ITEM: Chris will talk to Tom Seuntjens and then possibly write a letter to the NTA, the Commissioner, and the Secretary.

At this point in the meeting, a Social Science class came in the room to observe. The Committee was eager to get the students' views on tax literacy. Two of the approximate 30 students had learned how to fill in their own tax form in high school. Several of the students, as well as the teacher, were involved with the VITA program. Now about half of them filed their own tax return. None of the students had heard of the Taxpayer Advocate Service. The university's chancellor, Dave Werner, dropped by to extend his welcome to the committee.

LUNCH

CLOSING:
Chris reviewed the afternoon's assignments. Chris, Greg, Judi, and Anne will meet to write a letter about tax literacy. Sherry, Bob, Paul, and Lillian will meet to write a follow-up report expressing the majority and the minority views of the panel regarding National Licensing.

Tomorrow's meeting will be held in room at the hotel. Judi adjourned the meeting.

TAXPAYER ADVOCACY PANEL
AD HOC COMMITTEE MEETING
ST. LOUIS, MISSOURI
JUNE 7, 2003
8:30 AM CDT

ATTENDEES:

• JAMES GRIFFIN
• JAMES GRIMALDI
• LAWRENCE LEXOW
• CHRIS LOWE
• GREGORY MACIULLA
• ROBERT MELDMAN
• DIANE MIGNANO
• FRANCIS (BUCK) PAOLONE
• PAUL SMATHERS
• SHERRY WHAH
• LILLIAN WOO
• JUDI NICHOLAS, DESIGNATED FEDERAL OFFICIAL

ABSENT:

• LARRY BARNARD
• GERALD GENSIEJEWSKI, JR.
• CALVIN JOHNSON

STAFF:

• ANNE GRUBER

OPENING:
Judi Nicholas, as the Designated Federal Official, officially opened the meeting and handed it over to Chris Lowe, as Chairperson, to conduct business. Chris welcomed everyone back again. Anne Gruber took the roll call.

REPORTS:
Chris then reviewed the two letters that were written on the committee's behalf yesterday. The letter with the majority/minority report to the National Taxpayer Advocate was complete and copies were distributed to all. The group was still editing the letter about tax literacy, so Chris read it to all.

TAPSpeak:
Judi Nicholas briefly went over the new Internet based forum for TAP members to use to communicate. It can be accessed at http://TAPSpeak.fedworx.org. It can be accessed with a User name and a password that are created by the user the first time on the system. If anybody has any trouble, Barbara Toy can be contacted. Her back up is Mary O'Brien. But actually any staff member should be able to help. After registering, within 24 hours approval is emailed. Then panel members can access the site anytime to change their account information, edit their Bio, or enter discussion items. Other uses include accessing information in a Reading Room, or a Discussion topic, or responding to an Action item where comments are being asked for, such as meeting minutes or elevated issues. Also the year's calendar is available and eventually all members' Bios will be on the system. TAPSpeak should be an easy and quick way to review TAP material. As topics are posted members will receive an e-mail notification of any information related to their issue or area committee.

SAMS TOPICS:
Everyone received two lists. One is the TAMIS list of taxpayer problems and contains the top 25-taxpayer issues sorted by volume on Taxpayer Advocate Management Information System(TAMIS), but it is fairly technical and probably not understandable to the non-practitioner. The other list is the 23 most serious problems encountered by taxpayers from the National Taxpayer Advocate's Report to Congress. Chris was hoping to get the top 20 items from the SAMS (Systemic Advocacy Management System), but they weren't available in time. Chris wanted everyone to look at the lists to see if any problems interested them enough to want to work them.

Buck asked if Navigating the IRS meant problems with the phone system Judi explained that it meant since the reorganization employees' jobs changed and it is difficult to find the right person to handle your problem.. But that is a good point, the list only contains titles, which are often not clear. The Report itself is helpful in deciphering the problem. The TAMIS list is the problems that come to TAS. The Report to Congress list is what the NTA feels are the most serious. The SAMS list is problems identified by employees, taxpayers, practitioners, congressionals, anybody who writes in.

Judi explained the procedure to get referred to TAS and the criteria that must be followed. Hardship is the key word, but also anybody who has waited over 30 days for a response. Consequently, some TAS cases are 3-day priority, while others have a 7-day turn around.

Lillian wondered how many of the Advocates' suggestions have been picked up by legislation and become law. ACTION ITEM: Anne will attempt to find out.

ITIN (INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER)
Judi said that this is an issue that might need TAP help, but she doesn't know any of the details yet. Jim Griffin said that Bank of America is an important stakeholder in the ITIN problem because of their help in getting money to the families in Mexico.

BREAK

MARKETING MATERIALS:
Larry Lexow brought samples of past marketing materials previously used by the CAP (Citizen Advocacy Panel). Everyone looked at the wording in the tri-fold brochure and felt that changing the name might be the only change necessary. Jim Grimaldi said that the previous CAP had a banner and a Mission Statement that they would put out whenever they had a meeting and he thought that they were quite effective. ACTION ITEM: A committee was formed to review the old marketing materials and key message and to develop a recommendation for the Joint Committee about TAP marketing. The following individuals will be on the committee:

• Larry Lexow
• Chris Lowe
• Diane Mignano
• Judi Nicholas
• Buck Palone
• Paul Smathers

FUTURE:
Bob Meldman suggested that they discuss a change in chairmanship since they had time. Everyone wanted Chris to stay in his position if he felt he had the time. Paul Smathers said he would consider being chairperson, but only if Chris wanted or needed to voluntarily step down. As far as meetings go next year, everyone thought that a meeting in January was a good idea. The first two weeks in January were identified as workable dates and the committee liked the meeting on Friday and Saturday. ACTION ITEM: Anne will work up cost estimates for Phoenix, San Diego, Las Vegas, and Los Angeles, preferably for January 8, 9, and 10, 2004.

CLOSING:
Next meeting is a teleconference on July 7, 2003 at 8 AM PDT. Judi adjourned the meeting.

Attachment A:

Taxpayer Advocacy Panel

Nina Olson
National Taxpayer Advocate
1111 Constitution Ave NW
Washington, DC 20004

8 June 2003

Dear Nina:

Attached please find the majority and minority statements from the AD HOC Subcommittee on Preparer Licensing. These statements are a follow up from our May 13th statement.

If I can be of further assistance in this matter or if the panel can assist you further in this matter, please feel free to contact me.

Sincerely,

Sherry Whah, EA
Taxpayer Advocacy Panel Member
AH HOC Committee
Subcommittee on Licensing, Chairman

Taxpayer Advocacy Panel
8 June 2003
AD HOC Committee
Subcommittee on Licensing

Majority Statement
The majority believes the proposal appears to establish the necessary structure to have reasonable assurance that there is consistency and accuracy in preparation of tax returns. Having standardized guidelines and compliance for all nonprofessionals tax preparers would allow for greater confidence for many people who do not use professionals and certified tax preparers.

Minority Statement
The minority believes licensing and enforcement is best left to the states. We concur with the points raised by the Service. We reached this conclusion partially because we believe there is insufficient empirical data to support national licensing of tax preparers.