Ad Hoc Issue Committee Minutes

April 5, 2004

• Jim Grimaldi
• Larry Lexow
• Chris Lowe
• Greg Maciulla
• Bob Meldman, Chair
• Judi Nicholas, Designated Federal Official
• Buck Paolone
• Sherry Whah
• Lillian Woo

Welcome/Announcements/Review
Bob Meldman welcomed all participants to the meeting and reviewed the agenda. Judi took roll and a quorum was met.

Bob mentioned Senate bill S882 which contains a provision for national registration of income tax return preparers as well as a provision pertaining to confidentiality of information provided to income tax return preparers.

Action: Judi will research the original text of the bill and send the pertinent portions to the appropriate committee members

There was some discussion about how much direct input TAP might provide to a congressional member regarding legislation. Judi informed Bob Meldman via e-mail that no direct contact may be made with congressional offices.

Sub-Committee Reports
National Licensing – Registration and Enforcement Sub-Committee: Bob stated that the subcommittee had a number of meetings and arrived at a number of viable ideas. One possibility considered was to have all tax return preparers governed by Circular 230. Chief Council's office is preparing input for the committee on expanding the coverage of Circular 230 and it should be available to the committee within a few weeks.

After a brief discussion it was agreed that the sub-committee had completed its work and the document they prepared represented their final recommendations to the full committee.

Bob asked the sub-committee to monitor the movement of Senate Bill S882 and look for opportunities to provide input along the way.

Action: Judi will contact Ken Drexler to find out how or if the NTA's office is involved in moving this bill forward and obtain any additional information he might have for the committee.

Action: Sherry will compare the sub-committee recommendations with the provisions of Senate Bill S882 to see where they might be different. Based upon the review the sub-committee might alter their recommendations.

Confidentiality - Lillian stated that her sub-committee has completed their work. What they found was existing laws and regulations are sufficient. There are two enforcement offices are available. The Office of Professional Responsibility, which enforces provisions in Circular 230 and the IRS Return Prepare Program, which enforces the standards of conduct for those preparers not covered by Circular 230.

What the committee uncovered was that both offices rely on referrals rather than actively seeking out cases. The committee has come up with, what they feel, are the key issues; how can they encourage increase enforcement of violations of confidentiality; how can TAP promote information about confidentiality so that the public is aware of what their rights are; and how can TAP bring about a toll free hotline for the taxpaying public to register complaints about confidentiality.

Lillian has drafted a recommendation to be considered by the sub-committee. The final recommendation will be shared with the full committee.

Bob suggested that Lillian also review Senate Bill S882 and look at the language discussing confidentiality.

Action: Lillian will review the confidentiality portions of Senate Bill S882.

National Licensing - Education & /Testing: - Jim Grimaldi stated that the sub-committee has decided to use the VITA test and education process as a model for education and testing as part of national licensing. The target taxpayer group for both VITA and national licensing are those taxpayers who have low to moderate income and need help with understanding taxes and tax preparation. Using the VITA partnership with AARP as a guide the sub-committee will recommend the IRS establish partnerships with tax return preparer professional organizations.

Action: Jim will compare the sub-committee recommendations with the provisions of Senate Bill S882 to see where they might be different. Based upon the review the sub-committee might alter their recommendations.

ONG-Office of Notice Gatekeeper
Judi and Diane created and administered an initial survey to determine which panel members had access Tax trails, FAQ or Tax topics on the IRS web site. A more comprehensive set of follow up questions were sent to the members who had accessed one or more of the topics. The survey responses are due April 13. Once the final responses are in they will be provided to the Office of the Notice Gatekeeper.

Buck asked Judi the survey was sent to individuals outside of TAP, it was not.

TAC-Taxpayer Assistance Center
Larry Barnard who is the point person for this issue was not no the call. A brief discussion about what Ad Hoc's role in looking at the TACs is. Bob believes that the NTA wants the TAP through the Ad Hoc committee to monitor the TACs.

The TAP already had an opportunity to provide input to the proposal to discontinue providing help to taxpayers whose question(s) are outside the scope of the TAC employee's training. Based upon the input from the Joint Committee the proposal was abandoned.

Action: Judi will contact Bernie Coston, TAP Director, to get more information on what the NTA's expectation is regarding the Ad Hoc committee and service provided by the TACs.

Closing
There was a discussion about the booklet, mailed to each panel member, containing all of the outreach and marketing materials. Buck Paolone thought some materials were missing. Judi explained that the materials in question would be distributed by the TAP staff and the booklet was intended to provide panel members with a list of what was available to them and how to obtain the materials. Additionally, some materials are not yet available. Buck requested all TAP members receive the booklet.

Bob also asked if the TAP members were going to receive a copy of the communication strategy plan. Judi explained that was something the joint committee needed to decide.

Action: Bob agreed to asked email Tom Suenjens, TAP chair and follow up on the Joint committee decision to disseminate the plan.

Bob mentioned that the committee has a conference call May 3rd and a Face-to-Face the end of May. The June 7 conference call is tentative – if the committee concludes the call is needed after the face-to-face meeting it will be held.

The only agenda items for the May 3 call would be to discuss and finalize the agenda for the face-to-face meeting later in the month.

Bob adjourned the call.