Area 2 Committee Meeting Minutes

February 3, 2004
3:00 PM – 4:30 PM EST
Teleconference

Roll call was taken by TAP Program Analyst Inez E. De Jesus
Quorum= 9; quorum was met, 11 members and the Designated Federal Official (DFO) were present on this call.

Panel Members Present

• Mary Balmer, Vice-Chair, NC
• Richard (Dick) Bobb, NC
• Anthony DiMartino, NJ
• C. Morgan Edwards, NC
• Robert Maziarz, NJ
• Patrick McCombie, DE
• David L. Meyer, Chair, NJ
• Terry L. Mapp, DFO
• Theodore Perros, D.C.
• Robert Taylor, PA
• Leonard Steinberg, NJ
• Faith Vinikoor, MD

TAP Staff

• Steve Berkey, National Office Program Analyst
• Inez E. De Jesus (Scribe)

Members Not Present

• Jerry Gensiejewski, Jr., PA
• Calvin Johnson, VA
• Karen Kerrigan, VA
• Manning H. Mosley III, PA

Welcome/Announcements & Welcome to New DFO Mapp
Chair Meyer opened the meeting by welcoming everyone.

The committee expressed its condolences to the Ferree family due to their recent loss.

Panel Member Perros shared an article that appeared in the February 3, 2004, Washington Times newspaper, which discusses the Alternate Minimum Tax (AMT) legislative issue that is also addressed in the National Taxpayer Advocate's 2003 Annual Report to Congress, as the most serious problem encountered by taxpayers. Perros promised to forward this article to all. Chair Meyer tabled this topic for discussion towards the end of the meeting.

Review/Approve Minutes from Meeting on January 6, 2004
Minutes were approved by consensus.

Action Items from Prior Meeting
Analyst confirmed that the following “action items” were addressed as noted:

• A letter of appreciation to former DFO was mailed on January 15, 2004.
• TAP Master Calendar was updated on January 7, 2004.
• Continue to contact the Form 1041 Subject Matter Expert, and inform him of change of face-to-face meeting location and other date change as discussed during last month's meeting. - Done on January 7, 2004.
• Analyst also shared that she had arranged a teleconference meeting for the 1041 subcommittee, which was held on January 22, 2004. (The subcommittee will update the committee later on during this call)
• List of LITC's (Low Income Tax Clinics), Publication 4134, was distributed to the entire committee on January 9, 2004.
• Issue # 1727, CP-2000 Notices, was forwarded to the Reducing Taxpayer Burden- Notices Issue Committee on January 7, 2004. DiMartino shared that the issue had been accepted by the committee and will be addressed.
• EFTPS Recommendation was incorporated into the Chair's last monthly report to the Joint Committee. (Will be discussed during the Joint Committee's February 17, 2004 teleconference meeting)
• The W-4 Issue will be addressed during this meeting.

Action items that are still pending
Bobb & Edwards will get together to address the issue of getting the citizens/taxpayers from N.C., and S.C. knowledgeable of TAP's existence and mission.

Status Reports from Sub-Committee Chairs

Form 1041 Issue (Simplification of Instructions)
Patrick McCombie shared that the subcommittee met via teleconference on January 22, 2004, and the following is an update of their discussion:

• McCombie will be completing soon the document with the changes to the instructions to the Form 1041, U.S. Income Tax Return for Estates and Trusts.
• Vinikoor is currently addressing the creation of a Form 1041EZ, although it will not be called EZ.
• Vinikoor shared that the IRS representatives have stated that it is doable to make changes to IRS forms and publications.
• DiMartino stated that in order to simplify Form 1041, the suggestion should not be too complex.
• Steinberg suggested that a 1041X Amended Form, showing both columns, should be developed similar to the 1040X Amended Return Form.
• Vinikoor also shared that she recently learned there is an electronic 1041.

W-4 Draft Recommendation
Bob Maziarz shared that he had received suggestions from the committee that wherever the word “salary” appears that it be replaced with the word “paycheck”. The committee agreed that once Bob makes these minor changes, he will share the document with all, and it should be ready to be elevated to the Joint Committee at this point. Action item: Maziarz will make corrections/ De Jesus- will ensure that this recommendation is elevated to the Joint Committee.

Re-visit “Elevated” Telephone Issue
Chair Meyer made a motion to amend this proposal. Discussion held concluded that:

• Give the taxpayer the option of providing feedback on the service received, and leave it to the IRS to create the questions.
• Revise the proposal, make it a simple questionnaire. Example: “Was your call answered in a timely manner?”

Action item: De Jesus will send copy of the recommendation to the Committee Chair.

Formation of New Sub-committees- 2004
Chair Meyer opened this segment of the meeting by referencing email he sent out on January 7, 2004, whereby he confirmed that the Area 2 Committee had decided to engage in more extensive outreach this year to better educate the public on TAP, and also the creation of the following new subcommittees:

1. Reduce “Processing Time of Offer-in-Compromise (OICs)”
2. Review OIC's criterias
3. Research “Efiling” Alternates
4. “Interactive Forms”- Review proposal to provide free tax preparation software
5. “Plain Language Publications”*

Meyer stated that he had received some responses indicating interest and would appreciate those who had not responded yet to do so as soon as possible. Action item: Meyer/De Jesus- once all members respond, a template with the members of the new subcommittees will be shared with all.

* Perros shared that he had requested from the Analyst to obtain a Subject Matter Expert (SME) in order to begin the dialogue with the IRS on the processing and background behind “informational bulletins”. Action item: Inez is in the process of obtaining a SME for this subcommittee.

Review of New Issue(s)
Analyst referenced Issue #2590, from a Practitioner in New Jersey.

Chair Meyer shared with the committee that he spoke to the Practitioner and learned that the client had received a “30 day letter” from the IRS and the Practitioner responded in 29 days but received a notice of deficiency dated 3 days later. Apparently the response was not inputted timely due to a computer program.

Vinikoor referenced that “the combination letter problem” which relates to this issue is also addressed in the 2003 Report to Congress as one of the most serious problems encountered by taxpayers.

DiMartino referenced the Single Point of Contact Notice Issue Committee Representative Jim Cesarano who has often mentioned that the IRS is aware of these issues, and it's going to take a long time to resolve.

Balmer stated that certain generated notices do not speak to one another. This led to a discussion among the members on how in the new IRS Budget there is no monies earmarked for the modernization program of IRS computers. All agreed that it would take a long time to get the IRS computers to communicate with one another. The committee agreed that the IRS is cognizant of this problem and there is nothing the committee can do regarding this issue. Action item: Chair will compose closing letter and Issue #2590 will be closed by the analyst.

Review of Parking Lot Issue- Beyond TAP's Scope- “Suggestion to Improve 1040 NR Instructions” (Issue # 2115)
Vinikoor suggested that this citizen be referred to the Systemic Advocacy (SAMS) system since his suggestion goes beyond the scope of the TAP's mission since it is really a legal issue involving non-resident aliens.

Committee agreed that this issue be closed. Action item: Chair will compose closing letter and Analyst will ensure that this issue is closed on the TAP database and all actions recorded.

Administrative News from the DFO
Recently assigned DFO, Terry L. Mapp, Local Taxpayer Advocate, Philadelphia, introduced herself to the committee and stated that she looked forward to be working with this panel. At this time, there was no administrative news to report.

Analyst De Jesus shared that she had placed an order for hardcopies of the National Taxpayer Advocate's 2003 Annual Report to Congress and she needed to know how many members were interested in obtaining the hardcopy version or the CD version. Members Bobb, DiMartino, Maziarz, Perros, Steinberg, and Taylor responded that they prefer a hard copy. (Members Balmer and Vinikoor had already placed an order) Chair Meyer reminded everyone that the report can be obtain by accessing the www.irs.gov website.

Public Input/Closing Assessment
Analyst shared that although a citizen from Virginia had registered to participate on this call, he did not sign on. There was no public input.

Before meeting ended, the Alternate Minimum Tax (AMT) legislative issue was discussed among the members since some members strongly feel that since this will be a major force during the next year or two, that perhaps this committee should address it as well. The following was discussed:

• A subcommittee be created to show support to the National Taxpayer Advocate's initiative regarding this issue. Perhaps the creation of an “education” program whereby a “fact sheet” notifying taxpayers of AMT, its purpose, etc be used as a distribution item and at the same time remind taxpayers that they should contact their representatives in Congress.
• Incorporate AMT during their outreach efforts.
• Write a letter of support to Nina Olson.

DFO Mapp shared that the previous week she had delivered the National Taxpayer Advocate's 2003 Report to 10 Congressmen within her district in Philadelphia and she can confirm that Congress is very much aware of the AMT issue and how it is the most serious problem that will affect a significant and increasing number of taxpayers. She suggested that the best way is for taxpayers to contact their congressional representatives.

Balmer referenced the “Brookings Institute” website where the Alternate Minimum Tax is also being discussed: http://www.brookings.edu/views/op-ed/gale/20040121amt.htm

Some members expressed that this should be an initiative outside of TAP, as a public service.

Action item: The following members Meyer, Perros, and Steinberg agreed to draft a document regarding AMT and then decide later on how this information will be distributed/shared.

Confirm Next Teleconference Meeting: March 2, 2004, at 3:00 PM ET