Area 1 Committee Meeting Minutes

May 27, 2003
Teleconference

Opening of the Meeting
Chairperson Fish opened the meeting at 1:05 PM EDT by welcoming all members.

Roll Call

Panel Members Attending

• Elizabeth Brodbine-Ghoniem, MA
• Walter Fish, NY, Chair
• William Gedge, CT
• Peter Gorga, Jr., NY, DFO
• James Grimaldi, NY, Vice Chair
• Catherine Kelly, ME
• Shamsey Oloko, NY
• Eileen Shuman, VT

Panel Members Absent

• Abigail Alicea, NH
• Aimee Brace, NY
• Diane Mignano, RI
• Paul Nagel, NY
• Charles Silva, MA

TAP Staff Attending

• Nancy Ferree, TAP Program Manager
• Marisa Knispel, TAP Program Analyst

Meeting Minutes
The minutes of the April 22nd meeting were approved by consensus.

Report on Joint Committee Meeting
Chair Fish briefed on issues discussed at the Joint Committee Meeting in Washington D.C. He explained that NTA Olson provided all committee chairs with a copy of the letter addressed to TAP Chair Seuntjens that explains procedures to follow on dealing with legislative issues. TAP members are not to submit their legislative recommendations or views directly to Congress, but to forward them to the Systemic Advocacy unit of the Taxpayer Advocate Service. Ms. Olson, he explained, selects the five main topics of interest to compose her Annual Report to Congress.

The terms of TAP membership were discussed. The Joint Committee proposed that after the two-year membership commitment, one third of the current membership volunteer to continue on the panel for an additional year. The new members will join for a two or three year term. The proposal is to be recommended to the TAP Director and National Taxpayer Advocate for approval.

Chair Fish also announced TAP's new web site, TAP Speak, and offered the site's address. The web site, he added, includes a reading room.

Members also discussed TAP's toll-free line (ASPECT) and web site. Analysts forward issues and concerns of citizens received through these to the appropriate committees. TAP's NY office is not currently connected to the toll-free line due to lack of staff, thus Analyst Knispel's duty is to address web comments.

At the meeting, it was also recommended that members establish a relationship with their Local Taxpayer Advocates (LTAs). LTAs make visits to congressional offices and bring forth issues affecting the public. DFO Gorga explained in more detail the purpose of these visits.

Member Grimaldi spoke about the upcoming IRS Practice and Procedure Conference to be held at the Helmsley Hotel in NYC on June 17th. He asked DFO Gorga if TAP members could participate in the event. Gorga explained that the event is sponsored by the NYS Society of CPAs and will follow up by providing Grimaldi the name of the person to contact.

Subcommittee Reports
Member Shuman stated that the proposals for Phase Outs and Penalties are not final. DFO Gorga explained that these proposals involve legislative issues; the third proposal submitted by Kelly is more of administrative nature.

Member Shuman talked about the Penalties and Interest Abatement proposal, indicating that she would like to add a suggestion on the issue of the IRS letter sent to taxpayers with a balance due. The letter sent to the taxpayer in Vermont , who initiated the issue, is not clear and she feels that an added statement will clarify the situation on penalties and interest for all taxpayers affected.

Member Kelly talked about her proposal to add a message under the IRS local phone number indicating that this number is not to be used for tax questions, but to make an appointment. At the very least, the message should indicate that the number is recorded, not live.

Member Shuman continued on the last proposal regarding Phase Outs. She'd like to address both recommendations made on the original proposal submitted to the committee as separate issue or proposals. Gorga agreed that the first recommendation made of publishing a standard table on tax publications (e.g. 1040 instructions) is an administrative issue. The second recommendation, he continued, is legislative. So, the best way to submit a recommendation on the Phase Out issues is to write two separate proposals.

Shuman will revise the Phase Out proposal and forward to committee. She will also make a couple of changes to the Penalties proposal, send it to Analyst Knispel who will forward it to the Joint Committee.

New Issues
Member Kelly asked Chair Fish if he had reviewed information she sent him regarding people under the age of 18 having to pay self-employment tax. She gave an example of a taxpayer in Maine . The issue was discussed and Publications 533 and 15 referenced.

Member Shuman asked the chair if he had new issues or tasks that he'd like to assign for the members to investigate. He indicated that he has been away recently and has not have time to review a list of issues that DFO Gorga sent him.

DFO Gorga asked members if they were aware of any hot topics in their area. Kelly raised the issue of the clergy who are affected on claiming the earned income credit due to their receiving housing allowance. Due to the inclusion of the housing allowance in the EIC calculation, these taxpayers are ineligible for the credit or the amount of the credit they are entitled to is substantially reduced. Gorga indicated that this is also a legislative issue and it might eventually get resolved. It is not an issue that impacts most taxpayers. The alternative minimum tax has more interest due to the number of people currently affected.

Future Meeting Planning
The topics of the Andover meeting and invitations to LTAs in the area were discussed.

Public Input
None.

Closing Assessment
In closing, Area 1's participation at the National Tax Forum in Atlantic City and TAP's Annual Meeting were discussed. Chair Fish closed the meeting at 2:09 PM.