Ad Hoc Issue Committee Minutes

Taxpayer Advocacy Panel
Ad Hoc Teleconference
May 3, 2004
11 am Eastern, 8 am Pacific

Attendance

• Jim Griffin
• James Grimaldi
• Larry Lexow
• Greg Macuilla
• Robert (Bob) Meldman
• Diane Mignano
• Buck Paolone
• Sherry Whah
• Lillian Woo

Staff

• Judi Nicholas, Designated Federal Official
• Marla Ofilas, Note Taker

Roll Call

• Marla Ofilas took roll and a quorum was met.

Welcome/Announcements/Review Seattle Face-to-Face Agenda
Bob welcomed everyone and began by reviewing the agenda for the Ad Hoc Face-to-Face meeting that will be held in Seattle, Washington on May 24th and 25th.

TAP Director, Bernie Coston will attend the meeting. Bob expressed a desire for a question and answer session with Bernie. Bernie will also give the committee an update on pertinent TAP issues.

Action: Judi will be meeting with Bernie in Chicago and will confirm the Q&A session with him at that time.

Action: Ccommittee members will forward questions for the TAP director to Judi.

Bob asked if anyone had any comments or ideas. Lillian agreed it’s a great idea to be able to have a give and take with Bernie. Bob asked Lillian, if she had any questions to please submit it. Since Lillian would not be attending the face-to-face meeting in Seattle, the committee would pass on her comments to Bernie.

Bob continued, Jim and Calvin are going to talk about the Confidentiality Sub-Committee Report during the Seattle meeting. Bob asked Judi if she knew what stage the report is in. Judi explained that the report has been drafted. The form will be shown to the entire committee but at this time the committee is in the process of putting the report on the referral template.

Bob added that the Taxpayer Assistance Centers is on the agenda and they will discuss what Nina Olson’s concerns are. Bob felt that this is something the committee could discuss; to see what kind approach the committee would like to use; and to see where the committee is going. An additional item Bob put on the agenda for the face-to-face meeting, is a Critique of the Ad Hoc Committee. Bob explained that the critique is not a self-critique of the committee but what function or role should the ad hoc committee play in the second term of TAP; where the issues should be coming from; and what can the committee work on for the rest of the year.

New Ad Hoc Issues
Jim Griffin offered that recently in California there was an interesting tax amnesty program. California generated over a billion dollars because of it. It was targeted toward a specific aspect of tax shelters; generic letters were sent to about 30 thousand people; and they have about 1000 people and companies responded in the tax amnesty time frame generating over a billion dollars in taxes collected. Jim felt that it was a win win situation. The offer of amnesty for a limited amount of time has proven to be good on the state level. Jim asked if it would be within the jurisdiction of the ad hoc to consider something like this.

Judi explained there wasn’t an amnesty program but what did happen for a period of time last year, people that participated in tax shelters had the opportunity to come forward and avoid any legal action. Jim suggested that since the state program was promoted and received publicity and the federal program receive similar affect, maybe the ad hoc committee may only need to suggest advertising as the outcome.

Judi explained that there has been multiple press coverage regarding this topic. Bob explained the program was initiated by the Chief Council Office in Appeals for Large and Midsize Companies.

Judi offered the IRS does not want to have an amnesty program on a regular basis. This could make the taxpayers not settle their accounts and wait until the IRS has an amnesty program to avoid paying additional fees. Bob agreed with Judi that the IRS just won’t agree to an amnesty program. The volunteer disclosure policy won’t hold up because their afraid someone maybe under criminal investigation and if they make it look like they are putting someone under criminal investigation when all they want is money then it’s blackmail. Bob felt that he could go on for hours regarding this. However, he did feel it was a great idea.

Bob asked if the committee has any ideas for issues the ad hoc could work on, they should bring it up in the meeting. The committee was instructed by Judi to try to find other issue to take on. One of the questions Bob will pose to Bernie is “Whether or not he could, more clearly define the role that Nina in visions for the Ad Hoc committee, and whether she will continue to give the Ad Hoc committee specific issues?” Bob explained to the committee, how the ad hoc committee receives their issues. Judi added that if there are issues any of the members are interested in and a member has an issue to bring up in the face-to-face meeting, to notify her so the staff could investigate and have it prepared prior to the meeting.

Jim Griffin provided an informational piece to the committee that he received for United Way in the San Francisco area. It’s a power point presentation that United Way provides to show what they do in supporting VITA and the EITC program. Jim just wanted to inform the committee about the program and will bring the materials to the meeting. Action: Jim will provide a CD-ROM of the presentation and show the presentation during the face-to-face meeting.

Sherry asked Bob if he had seen the information on Power of Attorneys (POA) that had just come available. Bob replied no. Sherry offered that as of March 27th the POA form 2848 is used only for representation, unless you are a CPA or Enrolled Agent, you cannot use that form. The tax authorization information form needs to be used for all others. It further states POA form is not filled out correctly, it will be returned to the taxpayer not the representative. Bob asked who else could have used the 2848. Sherry replied that in the pass unenrolled prepares could use the form. In addition, on the back of the form was a list of authority one had. Sherry continued that this was a new directive that just came out. Jim asked if they would be revising the form. Sherry replied that the article did not state that. But Sherry felt that they must be in preparation for licensing or something. One of Sherry’s concerns was that they were going to send the POA back to the taxpayer not the representative because it wasn’t filled out correctly. Bob reviewed form 2848. Bob asked if they were taking away the privileges of the family member and unenrolled prepare. Sherry said that it did confirm the unenrolled prepare but not sure about the family member. Sherry continued that the article just reported for representation only. Action: Bob asked Sherry if she could email it to him. He would be interested in seeing it. Sherry agreed. Action: Bob will send Judi information from Circular 230 to provide the committee members during the face-to-face meeting. The information is regarding who is covered and who isn’t.

Closing
Bob asked if anyone had any comments to make. Judi explained that Monday night the committee will get together for dinner and McCormick’s and Schmidt’s restaurant. Judi asked the committee to R.S.V.P via email with the number of people attending. In addition, Marla is looking into a restaurant at Pike Place Market that the committee could attend for lunch on Monday as well.

Judi added that she received a voice mail message, from the Territory Manager of the Taxpayer Assistance Center, that a tour of the TAC will not be a problem. He has also agreed to meet with the committee prior to the tour to discuss any questions the committee may have. In addition, Judi has an issue related to the TAC offices and receiving ITINs from the assistants in the TAC offices. Judi is working that issue and will have that available to review during the face-to-face meeting.

Decision: The committee agreed to cancel the June teleconference and also agreed to cancel the July teleconference so the group could work on receiving issues and have issue available during the August face-to-face meeting in Oklahoma City on August 2 and 3, 2004.

Bob thanked the committee members and adjourned the meeting.

The next meeting will be on August 2nd and 3rd, 2004 in Oklahoma City, Oklahoma