August 5, 2003
3:00 PM – 4:30 PM EDT

Participants (Committee Members)

• Mary Balmer, Chairperson, NC
• Richard Bobb, NC
• Anthony DiMartino, NJ
• Nancy L. Ferree, Designated Federal Official
• Jerry Gensiejewski Jr., PA
• Calvin Johnson, VA
• Karen Kerrigan, VA
• David Meyer, Vice-Chairperson, NJ
• Theodore Perros, DC
• George Pruchniewski, MD
• Robert Taylor, PA
• Faith Vinikoor, MD
• Staff Members
• Inez E. De Jesus, Scribe

Members Not Present

• C. Morgan Edwards, NC
• Robert Maziarz, NJ
• Patrick Mc Combie, DE
• Manning H. Mosley III, PA
• Lou Romito, Designated Federal Official
• Leonard Steinberg, NJ

No public participants on this call.

Welcome/Announcements
Chairperson Mary Balmer began meeting timely, and started by sharing the following information from the Joint Committee meeting held on July 15, 2003:

• Joint Committee minutes are available for all to view on TAP Speak, http://tapspeak.fedworx.org/irs/tapspeak.nsf/MainMenu
• National Taxpayer Advocate Nina E. Olson participated on this call and one of the questions she addressed was that the TAP should be working more closely with the IRS rather than with the Treasury.
• Ms. Olson also clarified a previous statement she had made regarding the former Citizen Advocacy Panel (CAP). When she had referred to CAP as a failure, she meant that despite all the best efforts of all the volunteers, CAP did not get the attention they should had gotten from the IRS. IRS failed to provide incentive to the Program Owners. She does not want to see this happening with TAP and plans on placing an emphasis on establishing a working relationship between the panel and the IRS.
• Chairperson Balmer shared her involvement with updating the TAP “Issue Matrix” which resulted in two additional columns: one to indicate whether the issue was “Active” or “Parking Lot”, and the second to indicate the category assigned to the issue. The Joint Committee wants to see all open issues with the appropriate indicator of being either “active” or in “parking lot”. The category column was added to assist in clustering the issues so that upon review, the Joint Committee would be better able to ensure there is no duplication of effort among the Area Committees. Balmer also shared that the use of colors to differentiate is being considered, and if used a legend will be provided to indicate the significance of the color code(s).

Action: Chairperson requested that analyst provide her with a listing of Area 2's open issues by Main Category and Subcategory so that she can review to ensure the issues have been properly categorized.

• The Joint Committee will be having their next face-to-face meeting, September 5-6, 2003, in Denver. Since Chairperson Balmer will not be able to attend, Leonard Steinberg will be representing Area 2. The Joint Committee will be working on the agenda for the forthcoming Annual Business Plan during this meeting.
• The Annual Business Meeting will be held October 2-4, 2003 in Washington, DC . Further detailed information is forthcoming. The TAP Staff announced that Jenny Reyes, TAP Secretary, would be contacting the committee in order to confirm attendance and to make travel arrangements; the cutoff date to reserve rooms at the Grand Hyatt Hotel is August 22, 2003.

Overview on Recent Face-to-Face Meeting in Philadelphia
None

Roll call
Program Analyst De Jesus took the roll call, and announced that Designated Federal Official (DFO) Lou Romito is currently on a teaching assignment and that Program Manager Nancy L. Ferree will be acting as DFO during this meeting.

Quorum= 12 members present, quorum of 10 met

Review/Approve Minutes from meeting on June 20 & 21, 2003
No objections; Analyst confirmed that all corrections brought to her attention by Panel Members Perros, and Steinberg have been made. Minutes were approved.

Action items from prior meeting
TAP Staff and several members confirmed that they had received from DFO Romito the “Welcome to the IRS-An Orientation to IRS History, Culture, and Values” publication which he had promised during the recent face-to-face meeting in Philadelphia, PA.

Program Analyst De Jesus reported that all action items from previous meeting are completed, and that the action items assigned to her regarding Researching the Systemic Advocacy (SAMS) will continue to be an on-going effort as this committee receives new issues. She also informed the panel that she will be attending the Taxpayer Advocate Tax Law & Technical Training Symposium next week and was looking forward to learning more on how to effectively use SAMS.

Status Reports from Sub-committee Chairs
Chairperson Balmer asked if there were any comments on the 2 recently elevated recommendations to the Joint Committee and there were none. These are:

1. IRS Toll-Free Number (Issue #70)- Wait Time Before Speaking with an IRS Customer Service Representative and Taxpayer Feedback Immediately Following the Call.
2. EFTPS-Short Form Worksheet-(Issue # 467) EFTPS Telephone Prompts Do Not Match the EFTPS Short Form Worksheet.

Action Requested: DFO Ferree suggested that analyst post these 2 recommendations on TAP Speak.

Chairperson Balmer also shared with the committee that Issue # 1865, “Problem with the Handling of Power of Attorney's on Practitioner Toll-Free Number” will be closed since the IRS has an “e-services” initiative to offer tax professionals the opportunity to electronically interact with the IRS beginning Fall 2003, and included in the initial offering is the Disclosure Authorization, including the Power of Attorney. There was no objection from the committee.

Status report on Form 1041 Issue # 1309
Chairperson Balmer shared that on July 1, 2003, the subcommittee met via teleconference with IRS Subject Matter Experts Chuck Frank, Tax Law Specialist, 1041 Instructions, and John Darazsdi, Attorney, Estate Tax. Conclusion: changing the instructions of a tax form is easier than creating a brand new form. ( e.g. 1041 EZ concept the committee was considering.)

The subcommittee also learned that when presenting a recommendation to the IRS, consideration should be given to the significant reduction of taxpayer burden. This is a key factor. How will it make it easier for the taxpayer? It will be very costly for the IRS to program a 1041 EZ.

A suggestion that Esquire John Darazsdi made during the recent face-to-face meeting would be to clarify the process on income taxed at the estate level versus income passed to the beneficiary by using the Schedule K-1 (Form 1040). Perhaps an idea for the committee to consider would be a flowchart to clarify the concept. Vice-Chair David Meyer suggested that perhaps in separate areas in the instructions booklet to have diagrams: “If you have an easy estate, follow________”.

Chairperson Balmer also stated that both Chuck Frank and John Darazsdi are very eager to be working with the Area 2 committee; and, she briefly shared with the committee a systemic issue Inez had brought to her attention regarding Electronic Filing of Form 1041 error, which is irrelevant to what the committee is addressing.

Status report on Form W-4 (Employee's Withholding Allowance Certificate) Issue #494
Bob Taylor shared that the subcommittee has not met yet. (Sub Chair Maziarz, and C. Morgan Edwards, and Bob Taylor)

“The citizen from Pennsylvania had made a suggestion that Form W-4 be changed and that there should be an option to have a percentage withheld. Specifically for when income is sporadic, it's easier to ask for 10% of wages to be withheld.” Panel member Taylor stated that in Circular E, Employer's Tax Guide, there is mention of a percentage, but it has been his experience that it is an issue to get companies to adhere to it. The subcommittee will continue to review this issue.

Review of New Issues (Copies were mailed to panel as “pre-read materials prior to this meeting”)
Program Analyst provided the panel with a brief overview of each of the following new issue(s):

Issue #126-Conflict of Interest-Various Issues
CPA from South Carolina shared his support of the National Taxpayer Advocate's views regarding the regulation of tax preparers. Committee discussed how similar issue was discussed in the TAP AdHoc Committee as well by the Senate Finance Committee. Committee agreed by consensus to respond to CPA and close the issue on the TAP database.

The procedure to be used would be for analyst to prepare draft-closing letter and submit to Vice-Chair Meyer for review.

Issue # 1108-Toll-Free Line-Returned Phone Calls with 3 Business Days
Citizen from New Jersey brought to Area 2's attention that when she called the toll free line for assistance with a Schedule E technical question (s), she did not get a call back on the same day, and when she returned the phone call, it becomes a telephone tag.

Panel Member DiMartino shared his extensive conversation with this individual, and he too, has had similar experiences. Not too many employees are trained to answer technical questions such as Schedule E; she had also phoned during the height of the tax season. DiMartino also stated that after a long conversation with this citizen, she was satisfied with the responses given and the awareness that the committee is already addressing the issue of elevating suggestions for improvements to the IRS Toll-Free number service.

Panel Member Faith Vinikoor and DiMartino also shared that Area 3 is also addressing this problem. Committee agreed that this issue be closed in the TAP database and a letter be sent to this individual thanking her for her input.

Issue # 1984- Estimated Tax Penalty
Citizen from Pennslyvania had an individual tax issue regarding estimated tax penalty; Analyst De Jesus shared that after checking SAMS to ensure there was no systemic problems individual was informed of options available regarding requesting abatement of penalties. Program Manager/DFO Ferree also shared that a letter was sent to this individual on behalf of the panel. There were no objections. Issue closed: TAP database.

Issue # 2074-Practitioner Assistance at SC Taxpayer Assistance Center
Practitioner from South Carolina is concerned about the new policy that begins in October 2003 whereby one will no longer be able to get transcripts at the local Taxpayer Assistance Centers.

Chairperson Balmer stressed that based on the latest news on “e services” initiative by the IRS, tax professionals will be given the opportunity to electronically interact with the IRS, and can request tax return transcripts through the new “Transcript Delivery System”.

Analyst shared that Panel Member Mosley III had shared with her that he was aware that there had been problems specifically in this office.

Panel Member Jerry Gensiejewski Jr shared that at meetings he has attended there has been heated discussion by Practitioners on this new policy change. There is a belief that they should be consulted before IRS makes changes like this one. When promoting this change, there has been poor communication.

Action: DFO Ferree who happens to be attending the 2003 Tax Forum in Atlanta, GA, on this same day, stated that she would make an inquiry among the Practitioners in attendance and get back to the panel on input she receives to find out 1) whether tax professionals are aware of the new “e-services” initiative, and 2) whether they would be inclined to use it.

Action: Chairperson promised to share with Panel Member Gensiejewski the link to the “e-services” page.

A question arose whether there may be some fees associated in the future when a taxpayer/Practitioner may be requesting transcripts from the IRS.

Committee agreed to placed this issue in “Parking Lot”.

Issue # 2115- Suggestion to Improve Instructions to Form 1040 NR (U.S. Non-Resident Alien Income Tax Return)
Citizen from South Carolina who is involved with the VITA (Volunteer Income Tax Assistance) program is suggesting that some changes be made to the Instructions for Form 1040-NR 2002, specifically where it is related to foreign teachers.

Analyst De Jesus shared that she had just received additional information from this same individual with suggestions for changes to Publication 519, U.S. Tax Guide for Aliens. This information will be mailed to the panel. Committee agreed to place this issue for now in “Parking Lot”.

Issue # 2126- Suggestion: Improvement to Menu Choices on Toll-Free Number Given on Notices
Citizen from Maryland suggests that the committee should review the menu options on the toll free numbers provided on notices and that they be relevant to the notice being sent. Committee agreed to place this issue: “Parking Lot”.

Issue # 1727- Prioritize Systemic Problems with Notice CP-2000 (Under Reported Income)
This issue had been forwarded to the Notice Issue Committee, but was recently returned to Area 2 since the Notice Committee is currently only working on the re-writing of certain notices. Committee agreed to place this issue: “Parking Lot”.

The 2003-2004 Priority Guidance Plan Report
During the past month, Panel Member Patrick Mc Combie had shared this report with the committee. The report shows the projects that the IRS has identified and will be addressing within the next 12 months. Panel Member Faith Vinikoor shared her views on the importance for the panel to learn how Chief Counsel handles IRS regulations.

Vinikoor suggests that this be a topic to be included in the workshop during the Annual Business Meeting. Chairperson reminded everyone that all suggestions needed to be forwarded by August 7, 2003.

Action: Chairperson also requested that panel members who have access to AOL Instant Messaging, that they provide her with their buddy name.

Administrative News
DFO Ferree reminded everyone to expect a phone call from Secretary Jenny Reyes regarding travel reservations for upcoming Annual Business Meeting. Also, reminder of any feedback regarding the agenda for this meeting needs to be forwarded, as soon as possible.

DFO Ferree reminded everyone of “TAP Speak” and if anyone was experiencing any problems, to please let the staff know. Panel Member DiMartino shared that he has had difficulties in accessing. He has been helped but the problem remains.

DFO Ferree also reminded everyone of the importance of letting the staff know prior to any outreach that involves expenses. Approval is necessary to ensure that funding is available. Also, if members need to purchase supplies, please make the request from the staff. Out of pocket expenses for supplies will not be reimbursed.

Conclusion: The panel agreed that commencing immediately, instead of emails, communication between staff and panel will be made via TAP Speak. For example, the posting of draft/final minutes, agendas, list of open issues will be available on TAP Speak. There will be a trial period of one month and then this will be readdressed.

Public Input/Closing Assessment- No public input.
Panel Member Theodore Perros shared that he still senses there is a fear of the IRS by many when he conducts outreach events and requests input on how to improve customer service at the IRS.

Chairperson Balmer closed the meeting timely and thanked everyone for his or her participation.

Confirmation of next teleconference meeting
September 2, 2003, from 3:00 PM-4:30 PM EDT. (Same dial in number and participant's code)