Ad Hoc Issue Committee Minutes

December 1, 2003
8:00 a.m.

Members in Attendance

• Larry Barnard / Riggins, ID
• James Griffin / Walnut Creek, CA
• James Grimaldi / Brooklyn, NY
• Calvin Johnson / Virginia Beach, VA
• Lawrence Lexow / Edwardsville, IL
• Chris Lowe / Placentia, CA
• Gregory Maciulla / Tucson, AZ
• Robert Meldman / Milwaukee, WI – Ad Hoc Chair
• Diane Mignano / North Kingstown, RI
• Judi Nicholas / Seattle, WA Designated Federal Official
• Francis Paolone / Hoover, AL
• Paul Smathers / Edgeley, ND
• Sherry Whah / Anchorage, AK
• Lillian Woo / Bryan, TX – Ad Hoc Vice Chair

Members Absent

• Gerald Gensiejewski Jr. / Newtown, PA

Staff/Note Taker

• Virginia Patterson

Welcome/Announcements/Review Agenda
Introduced Virginia Patterson, who is temporarily filling in for Anne Gruber as analyst.

Virginia is a program analyst with Taxpayer Advocate Service (TAS).

Practitioner Licensing
Bob Meldman read an excerpt from Nina Olsen November 18, 2003 response to his letter of October 10, 2003 . “Thank you for the opportunity to reply to the Ad Hoc Committee regarding issues the group might take up in the coming year. The registration and certification of tax return preparers is a very good issue for the Ad Hoc Committee to address. Inviting Thomas Berry Cooke and others to provide input to the Committee is a fine strategy for gathering all viewpoints before formulating a recommendation…”

Sherry, Jim Grimaldi, others on the subcommittee will contact various professional organizations involved in taxes to obtain their thoughts and suggestions regarding practitioner licensing find out what they think is necessary for licensing.

The sub-committee will meet again on December 5 to discuss the results of the conversations with the practitioner organizations. The sub-committee would like members of interested organizations to provide comments to the Ad Hoc committee. The recommended format is a 2-½ hour teleconference. Each group would have up to 15 minutes to make a presentation regarding licensing and registration. A 15-minute Q & A session would follow the presentations. The guests would leave the call after the Q & A portion to allow the committee to discuss the issue further. (we cannot ask the participants to leave the call since this is an open meeting but we can indicate that the committee will discuss what they have heard without taking any additional comments) Each group would be asked to provide their views in writing in advance of the call.

Consensus was reached regarding the call format and date. The call will be scheduled for February 2, 2004 at 8:00 am PST / 11:00 am EST.

Communication Strategy
The Joint Committee approved the communication strategy proposed by the Ad Hoc committee. The Joint Committee was given a window of time to provide any additional comments to Bob; he has not received any comments to date.

ACTION: Judi work with the TAP Director and managers regarding a timeline for implementation.

Other Ad Hoc Issues
Bob listed the four issues in his October 10, 2003 letter to Nina Olsen and Thomas Seuntjens:

1. Registration and certification of tax return preparers.

2. Confidentiality of information
   Nina Olsen November18 th reply: ‘ I also endorse the Ad Hoc Committee's desire to develop the issue of confidentiality of information provided to return prepares. I look forward to the Committee's perspective on this issue.'

3. ITINS
   Nina Olsen November 18 th reply: ‘The issuance of ITINs to immigrants is an issue that is very much in flux within the IRS, and I suggest the Committee wait to see if the IRS resolves the matter.”

4. Large case (LMSB) issues.
   Nina Olsen Nov 18 th reply: ‘I do not feel that it is appropriate for the Ad Hoc Committee to take up issues facing LMSB taxpayers since Treasury envisioned the TAP addressing issues impacting small business taxpayers and taxpayers whose income is from wages and investments.'

Confidentiality: The committee needs to flesh out what it means by confidentiality. Lillian, Larry Lexow, Calvin, Diane and Larry Barnard will be on the subcommittee for this issue. Lillian will serve as chair for the group. The first conference call is scheduled for December 8 th at 11:00 EST.

Action: Judi will send an e-mail reminder with the call in information.

Lillian asked the sub-committee members review the Gramm Leach Briley Act information at the following web site www.ftc.gov/privacy/privacyinitiative

ITINs: per Nina's suggestion, committee will put this issue in the parking lot for future consideration.

LMSB related issues: If an issue is strictly related to Large and Mid-sized businesses the committee will not take in on. If an issue impacts Large and Mid-sized businesses and other taxpayer segments (wage earners or small businesses) the committee will consider the merits of the issue and make a decision whether to accept or reject the issue.

Bob invited each committee member to raise any other issues they think the Ad Hoc Committee should consider. Other Issues:

Jim Grimaldi – The president of the Brooklyn Borough is interested in having the TAP help with a financial literacy initiative. After some discussion Jim will direct him to the IRS Web site. The Ad Hoc committee also sent a letter to Secretary Snow regarding the need for high school education about tax obligations.

ACTION: Judi will send Jim the link to the web site as well as a copy of the letter sent to Secretary Snow.

Greg Maciulla – The IRS needs to advertise the resources available to taxpayers to assist with all manner of tax issues. This issue may be addressed when the communication strategy is implemented.

Sherry Whah – What happened to the issue regarding refund anticipation loans (RALs)? Lillian indicated Area 5 is working this issue and had a conference call with the IRS E-File Executive last week. The primary barriers are the desire of the free-file alliance members to offer RALs and the IRS' interest in maintaining the alliance. Lillian indicated the issue has become so big that Area 5 may break off part of it and ask it be assigned to the Ad Hoc committee.

FACE to FACE Meeting
The meeting is scheduled for May 23 – 25 in Seattle. The meeting will begin on May 24 at 8:30 am and end at 4:00 pm PST. The meeting will resume at 8:00 am on May 25 and end at 11:00 am. Travel will be May 23 and May 25 or 26 depending upon flights.

Next Ad Hoc Teleconference: January 5, 2004 , 8:00 am PST / 11:00 am EST