Area 1 Committee Meeting Minutes

September 23, 2003
Teleconference

Opening of the Meeting
Chairperson Fish welcomed all members and asked Vice Chair Grimaldi to introduce the invited guest. Grimaldi took the floor to introduce Fred Arriaga, Staff Attorney of the South Brooklyn Legal Services, a Low income Tax Clinic.

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
• Paul Nagel, NY
• Charles Silva, MA

Panel Members Absent

• Aimee Brace, NY
• Diane Mignano, RI
• Shamsey Oloko, NY
• Eileen Shuman, VT

TAP Staff Attending

• Marisa Knispel, TAP Program Analyst
• Sandra Ramirez, TAP Program Manager

Guest

• Fred Arriaga, Staff Attorney, South Brooklyn Legal Services.

Vice Chair's Presentation
Grimaldi stated that an issue he is interested in as well as guest Arriaga is that of financial literacy. In NYC, for example, this is a big issue. Currently the Brooklyn Borough President is taking steps to address financial literacy by forming a coalition with the NYC Education Department. Financial literacy is a concern for the entire country since it deals with financial education and independency. It encompasses knowledge of tax obligations to how to complete an application for a credit card. The Brooklyn Borough President is concerned in helping graduating high school students and people who decide to open small businesses. The issue is crucial for native-born Americans as well as people who immigrate from other countries. When it comes to tax obligations, for example, the latter need to be educated especially those who come from countries where there is no voluntary tax system. These people need education on our tax system to be voluntarily compliant.

Grimaldi continued underlining the importance of financial literacy by saying: “How do people know their tax obligations if they are not used to this tax system?” Ghoniem indicated that the Multilingual Issue Committee is working with English As A Second Language (ESL) programs to develop an educational program on taxes. Nagel said that the Schedule C Non-Filer Issue Committee that he chairs worked on this issue. It is very difficult for taxpayers to complete a schedule C when they are not even aware of their filing obligations. Kelly added that volunteer groups are also considering the issue at a high school level. Silva agreed that we should recommend financial literacy to be part of the curriculum program for all school systems in the country.

Nagel explained that the IRS website provides a program called Understanding Taxes. Ramirez spoke about this Program as one used by the IRS's Taxpayer Education function to address high school students and educate them on the tax system. The program offered various materials and video presentations. She does not know if after the IRS reorganized, the program continued or changed. Gorga suggested that the Committee request IRS's TEC organization supply to us an example of literature they distribute to businesses and individuals on the subject. This would be our basis to start working on the issue.

Fish recommended Grimaldi contact someone in the NYC school system and we would revisit financial literacy at our Annual Meeting in October.

Guest's Presentation
Fred Arriaga introduced himself and explained the purpose of the South Brooklyn Legal Services as a Low Income Tax Clinic that represents low-income taxpayers meeting poverty guidelines to resolve issues with Tax Court or the IRS. Mr. Arriaga indicated that one of the major problems taxpayers face with IRS is on the issue of notices, mostly those related to earned income tax credit (EITC) claims. When IRS writes to taxpayers requesting documentation to prove their claim to the EITC, the documentation requested is not specific. When the taxpayer tries to contact the IRS to get clarification, no tax examiner is able to help. There is lack of communication between taxpayers and IRS. Also, when the taxpayer sends documents to IRS, it takes months before receiving a reply from the agency, causing a delay for the taxpayer to receive his/her refund.

Fish asked Arriaga what he would like us to do. Arriaga responded that we try to open lines of communication between the taxpaying public and the IRS. Develop communication with Examination. Reduce the lagged time from the time the taxpayer submits documentation to the time IRS responds to the taxpayer on whether the documents were appropriate or not. Arriaga does not recommend a face-to-face meeting with a tax examiner for this may intimidate the taxpayer, but at least correspondence that may clarify the documentation necessary to prove the claim.

Fish asked Arriaga if he found that most taxpayers return to the same tax preparer that prepared their tax return for help with the IRS notice or they went for assistance to the LITC. Arriaga explained that some do go back to the original preparer, but if assistance is not effective they go to the LITC. As pro-se clients the LITC will assist them free of charge where a tax preparer will request a fee. This adds to the taxpayer's burden.

Kelly asked Arriaga if taxpayers referred to the phone number provided in the IRS notices to get information on the status of the return. Arriaga said that when calling the number provided you do not reach anyone in Examination with access to the exam file. Thus, the IRS employee cannot assist on assessing the problem with the documentation needed. Arriaga suggests that IRS notices and correspondence include the name and phone number of the IRS person handling the case. Kelly explained that the EITC Issue Committee is working on this specific issue of notices related to EITC.

Fish concluded by saying that the Committee will consider this issue at their Annual Meeting and invited the guest to stay for the rest of this meeting.

Meeting Minutes
Fish asked for the minutes of June and July to be approved. These were approved by consensus. The Committee agreed that the minutes of the August meeting did not need approval since there was no quorum met; thus, not an official meeting.

Subcommittee Reports
None.

Report on Joint Committee
Fish said that at the Joint Committee Meeting in Denver the following issues were discussed. First was the subject of members who did not wish to continue membership in TAP. Second issue was the option for members to change their respective Issue Committees.

The issue of term of office was also discussed. Although currently TAP membership is two years, the Joint Committee proposed to have some members remain in the Panel for a third year to allow a membership rotation and aid in the transition.

Last was the issue of TAP members receiving feedback on the proposed and forwarded recommendations to the IRS. Some remaining members of CAP, the precursor to TAP, found the lack of feedback to be a disappointment and hope that it is not repeated with the new organization. Gedge mentioned that this communication with IRS would be a decision-making point for him to consider continuing his TAP membership for a third year.

Fish took the opportunity to remind members that the Joint Committee has forwarded Ghoniem's written proposals on the ITIN, OIC Fee and Quality Control to the IRS.

Report on Annual Meeting
Fish spoke on the Annual Meeting's Area 1 gathering in Washington D.C. on Saturday, October 4th. Ramirez reminded all members to make their workshop selections.

Outreach
Fish discussed the need for Area 1 members to conduct outreach to bring back issues from their communities. Grimaldi asked what type of support could the members receive from the IRS? Ramirez indicated that TAP wants to plan for outreach activities in the new year. Some outreaches may be in coordination with IRS organizations. She also spoke about new marketing material available to our committee members. For example, a Speak Up flyer that may be distributed in outreach activities which provides the opportunity for comments to be addressed to TAP's office in Brooklyn.

Fish said that local community activities provide many outreach opportunities. He gave the example of a country fair in his area that would allow TAP to participate free of charge. Gorga knows of fairs in Yonkers and White Plains, NY that may also offer an opportunity for local TAP members' participation. Fish wants to review outreach plans as part of our meeting in October.

Other Issues
Fish spoke about a referral received through TAP's toll-free number from a woman in New York who received an IRS letter addressed to her husband with the husband's first name but no last name. Under last name, the letter indicated “deceased” which the taxpayer found to be a highly insensitive manner to address someone. She recommends that the IRS change policy when addressing correspondence to a deceased taxpayer.

Annual Assessment
Fish stated that all members received a copy of Area 1's Mid-Year Assessment by email and it was now time to formulate the Committee's Annual Assessment. He reviewed all issues worked by the Committee as they appeared on the former and suggested their status be changed if completed.

Reconfirmation/Reelection of Committee Chair and Vice Chair
Ramirez stated that she'd like to take reconfirmation/reelection votes on chair and vice chair of the committee. Some concerns were presented such as considering if those elected would remain members for a third year to assist in the transition of members within the committee. Kelly and Gedge asked that the reconfirmation/reelection be delayed until the October meeting so all members had a chance to participate.

Public Input
None.

Closing Assessment
Fish spoke briefly about the upcoming Annual Meeting in Washington, D.C. He indicated that no member has been appointed to replace Abigail Alicea from New Hampshire.

Ramirez reminded members that registration for the Annual Meeting will begin on Wednesday, October 1st from 4:30 p.m. to 7:00 p.m. and continue Thursday, October 2nd from 7:30 a.m. to 8:30 a.m.

Fish thanked members and guest for their participation.

Meeting closed at 2:35 PM EDT.

Next meeting will be the Annual Meeting on Saturday, October 4th from 8:30 a.m. to 12:00 p.m. in Washington, D.C.