Area 1 Committee Meeting Minutes

July 18, 2006
Teleconference

Designated Federal Official

• Ramirez, Sandra — Brooklyn, NY

Committee Members Present

• Barry, Shaun — Franklin Square, NY
• Epstein, Harvey — Lee, NH
• Gadon, Hal — Cranston, RI
• Hom, Gim — Acton, MA
• Margulies, Howard — North Easton, MA
• Searleman, Sanford — Glens Falls, NY
• Zgoda, Bruce — Clarence, NY

Committee Members Absent

• Guthman, Michael — Westport, CT
• Havey, Dorothy — Lincolnville, ME — Chair

TAP Staff

• Jenkins, Audrey — Analyst
• Knispel, Marisa — Analyst
• Odom, Meredith — Secretary

Roll Call
Quorum Met

Welcome/Announcements/Review Agenda
Epstein, Vice Chair ran the meeting in Havey’s absence.

JC Report Out
Epstein briefed the committee on the June Joint Committee (JC) meeting in Denver using an email from Havey. He referenced a memo which addressed several issues being worked by various members that provided feed back to Commissioner Everson on several topics that he raised in an earlier meeting with the JC. The topics included: section 7216 (Privacy Issue), Tax Preparer regulations, Outsourcing of collection activity, and Free E-filing. Havey is not sure if Area 1 issues were put forward and acted on. Jenkins stated that they were and that she was waiting for a response from Toy, the JC analyst who received the forwarded Area 1 recommendations, and whom forwards them to the JC Quality Review team. Ramirez will provide the committee with details of the JC meeting. The Communication committee conducted a survey about TAP Speak and the results show that TAP Speak needs improvement.

Subcommittee Report-Out
Subcommittee 1
The sub committee met on July 7th and they agreed to forward Barry’s write-up of the “Stall Letter”. The copy went to the entire committee. Searleman suggests that under benefits and barriers for the language to be softened. Knispel suggested rephrasing the sentence by taking out the word “cost” and use “changes” in programming. Barry will make changes to the letter and forward it to the committee. Jenkins will input database number before forwarding to JC.

Subcommittee 2
The sub committee met on July 11th. Zgoda discussed the monthly Installment reminder notice proposal and how the sub committee is trying to come up with a clearer way the notice can report to taxpayers each month how payments are applied and the balance accrues.  This letter will show how much their outstanding balance is, and for each payment made there will be a breakdown between the principal, interest and penalty which will explain the remaining balance. Jenkins will provide the entire committee with the proposal.

Hom - discussed the next item which is the inclusion of estimated tax payment on the Form 1040. Hom stated that other taxes such as social security are collected on the 1040 and when you send in your tax payment for the previous year, if you’re self employed, you pay social security to the IRS. You cannot, however, pay estimated income tax on the Form 1040, but if you have a tax refund on the return it can be applied to next year’s estimated income tax. Hom suggests adding a line for estimated tax on the Form 1040. Jenkins suggested that if the committee wants to make changes to the 1040, it would be a good idea to go through the Ad Hoc committee since they are working with the IRS on changing the Form 1040. Jenkins will arrange for a specialist to speak to the committee on estimated tax payments and how they are processed. Hom and Havey are on the Ad Hoc committee and Hom will ask the contacts in forms and pubs some questions in reference to the 1040. Jenkins will contact the Program Owners from Forms and Pubs in reference to the 1040, if needed.

Hom added that there should be a way of making estimated tax payments online to the IRS just as you do with other bills using online banking. Knispel noted that estimated tax payments can be made online using the EFTPS system. Jenkins will have an expert come in to address the committee on this matter.

Gadon acknowledged Knispel’s work on Form 8453. Gadon feels there are millions of dollars that could be saved each year by not using Form 8453. Gadon drafted the Form 8453 proposal and would like the committee to decide whether this recommendation is ready to go forward. Epstein will send the committee a copy of Gadon’s proposal and the committee will provide input.

Outreach Report-out by Members
N/A

Issue Committee Update
Gadon gave an update on the VITA TCE Committee. The committee feels they should get rid of the Form 8453, they are writing a volunteer manual in which the Practitioner Pin is the approved and preferred method for taxpayers to sign their electronically filed returns. The Self Select Pin issue is up in the air because the IRS intends to require preparers to retain W2’s for several years when they use the Self Select Pin. They are working on revising manuals.

Hom gave an update on the Ad Hoc committee which met in DC. The committee discussed the regulations for tax preparers. The committee met with representatives from the forms and pubs function of IRS.

Other Comments/Questions
Ramirez gave the committee an update on the interviews for the new applicants and thanked Hom, Barry and Zgoda for being on the interview panel.

Epstein had a problem locating the agenda on TAP Speak. Jenkins advised that going directly through the link will direct you to the agenda. After that you can always locate the agenda in the Area 1 Reading Room. Jenkins will also begin to post it to the calendar for quick access.

Recap New Action Items
Epstein will send out a copy of revisions to Gadon’s 8453 proposal. Subcommittee 1 will meet August 4, 2006 at 9:00 AM EDT. Subcommittee 2 meets August 8, 2006 at 9:00 AM EDT.
Jenkins will provide the committee with copies of Zgoda’s “Installment Letter” proposal. 
Ramirez will provide the committee with details of the JC Face-To-Face meeting.
Jenkins will arrange for a specialist to speak to the committee on the 1040 issue.

Public Participation
N/A

Next Meeting
August 15, 2006 @ 9:00 AM EDT