Taxpayer Advocacy Panel

Welcome/Announcements/Review Agenda
The meeting began with a warm welcome from the South Carolina Local Taxpayer Advocate Frances Kleckley who also took this time to share administrative matters with the panel regarding building logistics.

Chair DiMartino thanked Ms. Kleckley for providing such a fine facility for the Area 2 meeting.

National Office Report
TAP Director Bernie Coston began by quoting the opening of Charles Dickens, Tale of Two Cities, “It’s been the best of times, it’s been the worse of times….” in respect to the changes the IRS is constantly undergoing and the current budget situation. The IRS Budget has been approved but no allocations have been received yet. Coston applauded the panel for their participation as volunteers in assisting to making things better for the taxpayers. He reminded the panel that the staff is here to provide them with support. Highlights of Coston’s report are as follows:

President’s Advisory Panel on Federal Tax Reform whose primary mission is to recommend reforms to the tax code that will make the U.S. tax system simpler. Coston has a liaison contact person which he is in communication with.

The CD version of the National Taxpayer Advocate’s 2004 Report to Congress was distributed to all at this meeting. Coston pointed out the 21 “Most Serious Problems Encountered by Taxpayers” mentioned and how his expectation is that the staff and panel use this report as a reference as they address new issues. Coston is aware that this panel is already seeing the problems that taxpayers experience.

Emphasis on making contact with your Local Taxpayer Advocate and getting to view the operations of a Taxpayer Advocate office would be beneficial to all.

Dialogue between the staff and chairs is a very important communication mechanism.

Keep Inez and Nancy informed of any outreach you will be engaged with whether there is a cost or not.

Each committee will have only one face-to-face meeting this year. In addition, there will be involvement with Tax Forums and there may be other outreach opportunities.

Regarding the Annual Meeting, the National Office Staff is already working on planning this year’s event and we listened to the feedback received in order to make adjustments.

Measures on the effectiveness of the TAP are currently being reviewed, and committee’s input will be welcomed.

The new Communications Issue Committee was briefly discussed.

The Media Specialist in Area 2 has done a very good coverage this year with the Press Releases of panel members.

Release date of the 2004 TAP Annual Report is February 21, 2005.

McElroy shared that the he saw the TAP Area 2 meeting announced this morning on a local TV Channel. (WLTX Channel 19)

Perros shared his concerns regarding the DC Annual Tax Preparation & Information Fair event this year, and how there was exclusion for participants as far as income and he wondered if this was a grassroots issue. Director suggested that if the panel agreed a recommendation can be written up.

Administrative News from the Staff
Nancy L. Ferree welcomed all and thanked Inez for coordinating this meeting with the South Carolina Local Taxpayer Advocate and her staff. Nancy also went over some of the items in the folders provided to the panel; especially the “Travel Expense Report” and she reminded everyone that the original hotel receipts are required. Panel inquired if there was a possibility of being able to have in the future direct deposit.

Business Cards — Nancy shared that it will take about 4-6 weeks for the cards to be printed with the TAP Logo. Members who are serving their last term were advised to use what they have in stock and others can see her or Inez if they have a special need.

Nationwide Recruitment Plan — the staff will ensure that there is representation from every State. This is currently being addressed since the application will be made available on the TAP Website to the public from April 1-29, 2005. There will be News Releases announcing this event beforehand.

Review/Approve Previous Meeting Minutes
The minutes of the January 18, 2005 teleconference meeting were approved by consensus.

Review Pending Action Items
Inez reviewed the action items from the January 18, 2005 meeting, and confirmed that the action items were completed with the exception of the following which needs to be monitored until completion:

Issue #2389, Simplify Communications to Taxpayers, will be forwarded to the Joint Committee with the Chair’s February Monthly Report.

Criteria (Metric Scoring for Year End Report)- tabled for future discussion when Sinnamon will be available to address.

Joint Committee Report
Chair DiMartino shared:

that regarding the 2004 TAP Annual Report, which was previously mentioned by the Director, 500 copies will be printed in addition to availability by CD’s and on-line versions. A poll was taken and consensus was reached whereby CD versions will be provided to the entire area 2 committee.

DiMartino elaborated on the Measurements of the TAP that is currently being looked at by the TAP Director and solicited who will be interested in participating in providing feedback and this resulted in the following volunteers: Brubaker, Hurley, Kreisler, Sinnamon and Woo. (The Director noted this information.)

The Joint Committee reminds the area committees to stay focus on grassroots issues, as the Issue Committees address matters brought to them from the IRS.

Recruitment Process — comments will be solicited on “What did you think of the Recruitment Process?”- e.g. on line application, interview, etc. We will attempt to monitor past issues not addressed.

Meeting Satisfaction Survey — the Joint Committee encourages the committees to use this process after all meetings. Dimartino inquired, “Do you want this format?”- Nancy chimed in and shared that this is a very helpful tool for the staff, it is a lessons learned experience. A copy was provided in the Members Folders, and by the end of the meeting every member filled it out and submitted it to the staff. Action item for Inez: Coordinate responses and place the results on TAP Speak and have available for future meetings.

New Legislative Form — DiMartino shared how this form was created by Area 4 member James Abraham; copies were given to all members. Coston explained this form is meant to be a vehicle for elevating legislative concerns. National Taxpayer Advocate Nina Olson can decide whether or not to address the issue. Coston advised members to review the NTA Annual Report prior to elevating any legislative issues.

TAP Realignment

Chair DiMartino welcomed David Cain to the Area 2 Committee and explained that David came from Area 4 and this is a result of when recently TAP was aligned to meet TAS realignment. We had a gain and no losses.
The SB/SE Compliance Issue Committee was explained as well as the new Communication Issue Committee.
The new TAP Charter will be more general.

Sub-committee Reports Since Last Meeting

Issue # 3228, Efiling Alternates & Interactive Forms — sub-committee has not met since the last teleconference meeting.
Issue # 3234, Seniors Problems with Tax Matters — sub-committee has not met since the last teleconference meeting.
Issue # 3239, Provide Tax Forms to All — after a brief discussion led by Christine Hurley, the committee agreed to drop this issue.

In addition, during this section, Faith Vinikoor made a brief presentation in respect to Issue # 3367, Package X versus CD’s Distribution; she distributed 2 exhibits with information on the ordering of Package X (Forms and Instructions) by Tax Professionals as well as information on the Ordering of IRS-endorsed 2004 Federal Tax Products CD-ROM. After panel discussed this issue, they agreed by consensus to drop this issue (there is no contact information on the individual that originally brought this issue to Vinikoor’s attention.)

Vinikoor also made a brief presentation in respect to Issue # 3236, E-file Services & 100 Return Requirement; she shared information regarding the regulations of return preparers. The incentive is to obtain 100% electronic filing-services still available. She learned that most of the States piggy back on the Federal guidelines. The committee did not decide whether this issue would be pursued or not. Action item: this issue has been tabled for discussion during the March 15, 2005 teleconference meeting.

DiMartino shared that he had spoken recently to the prior Chair, David Meyer, in respect to Issue # 3220, Reduce Processing Time of Offer-in-Compromises (OICs), & Issue # 3223, Review OIC’s Criteria, and agreed with his input that this issue is already being addressed by both the IRS and the National Taxpayer Advocate as indicated in her 2004 Report to Congress. Unless the committee has a specific matter regarding OIC’s it would not be productive to continue to address it at this time.

DFO Terry Mapp chimed in and agreed with Chair DiMartino and also stated that OIC’s are very complex and each case needs to be addressed on its own merit; there is not a one size fits all.

Steve Rue shared that he refers his clients to the Local Taxpayer Advocate in Virginia when he experiences difficulties with specific offers. Committee agreed to drop both Issues #3220 & 3223.

TAP Director Coston also shared that there have been many studies done by the National Taxpayer Advocate’s office in respect to OIC’s.

Issue #3238, Access Via Telephone, Rapid Refund & Expanded Website, Hurley led this discussion; panel agreed to change the title of this issue to “Usability of the IRS Website”- Hurley shared that she had requested further information from the individual that provided her with these issues, and was awaiting his/her response. Action item: follow-up for Analyst Inez De Jesus is to conduct further research when she receives specifics from Hurley.

Processing of New Issues — Briefing by Program Manager
Nancy Ferree made a brief presentation on the processing of new issues. She made reference of the “TAP to IRS-Area Committees Flow Chart” that is in the Members Handbook, and shared that the staff conducts the preliminary research when an issue arrives and the National Taxpayer Advocate’s 2004 Report to Congress should be reviewed before working an issue. Citizens contact the TAP and make suggestions for changes by correspondence, telephone calls, web comments or by talking directly to a panel member.

Inez stated that the panel’s suggestions regarding the wording of the description or title of an issue are welcomed.

New Issues & Formation of New Sub-committees
New Issues:

Issue # 3390, Request “Timely Response Required” on IRS Problems — This issue was submitted by Panel Member Bill Bly; Bly shared his experiences with two of his clients who received a CP 2000 notice from the IRS and didn’t open the envelopes until the response dates had almost passed. TAP should consider asking the IRS to add to the outside of the envelope a brief statement like “Timely Response Required”- after researching IRS current procedures to see how notices are sent out. Results/Action item: committee agreed that a Draft Recommendation to the Joint Committee should be written up.

Issue # 3391, IRS “Take Home Pay” Web Calculator” — this issue was submitted by Steve Kreisler; he suggests that the IRS website provide a “take home pay” calculator to allow users to determine how much money will be deducted from their paycheck based on salary, filing status, W-4 allowances, EIC credits, and other inputs. Results/Action item: committee agreed that this would be a good idea and a sub-committee was created. (Further information below under “New Sub-committees”.)

Issue # 3392, Change Form 1065 Schedule D (Capital Gains and Losses) — This issue was submitted by Bill Bly: Partnerships use Schedule D with their Form 1065, US Return of Partnership Income, to report sales/exchanges of capital assets, capital gain distributions, and nonbusiness bad debts that are not specially allocated to partners. Bly suggests that two additional lines be added to this form for both short and long term gains/losses. Results/Action item: committee agreed that a Draft Recommendation to the Joint Committee should be written up.

New Sub-committees:

Issue # 3228, E-filing Alternates & Interactive Forms — sub-committee is composed of Cain (Sub-Chair), Brubaker, Hurley, and McElroy.

Issue # 3234, Seniors Problems with Tax Matters — sub-committee is composed of Sinnamon, Bly, Brubaker, Perros, Tillerson, and Vinikoor.
*Since Sinnamon had brought this issue to the panel’s attention, it is assumed at this time that he will take the lead of the sub-committee.

Issue # 3235, Suggestion Provided-Form 2553 — sub-committee is composed of Rue (Sub-Chair), DiMartino, Edwards & Woo.

Issue # 3391, IRS “Take Home Pay” Web Calculator — sub-committee is composed of Kreisler (Sub-Chair), McCombie, Maziarz, & Warnecki.

Citizen Input
None

February 18, 2005- Afternoon Session

Expectation: Sub-committee Break-out Sessions
Nancy Ferree explained the process of sub-committees working in between area meetings. The staff is available to conduct additional research and at times to obtain a Subject-Matter-Expert (SME). During a regular meeting, the sub-committees share with the entire committee an issue progress report. During this face-to-face meeting, the panel will have the opportunity to exercise this process.

Sub-committee Break-out Sessions
The sub-committees met for over approximately 90 minutes.

Reports Resulting from Break-out Sessions

Issue # 3228, E-filing Alternates & Interactive Forms — sub-committee will be reporting back to the entire panel their findings and possible proposal.

Issue # 3234, Seniors Problems with Tax Matters — sub-committee shared how Tillerson had reviewed Publication 554, Older Americans Tax Guide, and noticed that this publication refers the reader to nineteen other publications for additional information. Since Lynwood Sinnamon was not present and he is the individual that submitted this issue to the panel, the sub-committee will be sharing their notes with him to see if they are progressing in the proper direction. Results/Action: for both the sub-committee and Analyst in obtaining information from the analyst who prepares this Publication 554 to address specific questions. Obtain a Subject-Matter-Expert.

Issue # 3235, Suggesion Provided-Form 2553 — Background: Rue had attended a meeting with the IRS whereby he provided input which will be considered when this form is revised in the near future. Action for Rue: Rue is to prepare a letter to the chair as information to the Joint Committee on the details of what transpired at this meeting; in the interim, the sub-committee is looking at also changing the second Column “L” and use a terminology of “Ownership” instead of “Stock Owned”. Results/Action item for Woo: Woo is drafting the details of this issue and forwarding to Area 2 Chair and Chair will then format properly for elevation to the Joint Committee.

Issue # 3391, IRS “Take Home Pay” Web Calculator” — the sub-committee has agreed to become familiar with the IRS withholding calculator and examine relevant sections of the IRS Publication 15, Circular E. Sub-committee also agreed to review: www.paycheckcity.com. Results/Action item for the TAP Staff: Obtain a Subject-Matter-Expert, and investigate whether the IRS has contemplated creating this type of calculator for their website. If so, what decision was made and why? Also, how popular (e.g. how many hits, etc) is the IRS withholding calculator receiving?

Other Issues Discussed:

Issue # 2389-Simplify Communications to Taxpayers — Perros inquired on the status of this issue which he had originally submitted to the previous Area 2 Committee and was advised that since it had been approved last month by the committee to be elevated, it will be included in the Chair’s February 2005 Monthly Report to the Joint Committee. Perros also inquired if it would be appropriate for him to bring this same issue to the attention of the President’s Advisory Panel on Federal Tax Reform. Coston indicated that he would work with Perros on this since he already has a liaison contact person from the President’s Panel.

** It was also discussed that as a private citizen a TAP Member may approach a politician but not as a panel member. The TAP Annual report is distributed to the Department of the Treasury as well as to other stakeholders. A panel member must be clear about his/her role as Joe Citizen vs. TAP member.

Issue # 3316-E-Services Phone Site — David Cain shared an experience he had when he phoned this service and was placed on hold, and he had left the phone on hold overnight, and upon return to his office the next day, he was still in the hold mode. Cain stated that he had not intended for this to become an issue, he just wanted to express his frustration; and therefore, this issue was dropped.

Issue # 3394-Improve Form 1099 (U.S. Information Return for Calendar Year) — A citizen from Pennsylvania shared how his handwritten printing does not go all the way through all of the copies of Form 1099. He also indicated that he only fills out about 3 a year. After discussion by the panel, Results/Action item: this issue will be dropped and a letter will be sent to the citizen, suggesting that since he only prepares a few 1099’s annually, that perhaps he should send in the original after making copies of the original.

Issue # 3295-Add Limited Liability (LLC) Option to Form SS-4 — inadvertently, this issue was not discussed and it will be tabled for discussion during next month’s meeting. Action item: Add Issue #3295 to the agenda for March 2005 teleconference meeting.

Outreach Reports — committee decided to address these on day number one and all were reminded that information regarding the area’s outreach activities can be found on TAP Speak: http://TAPSpeak.fedworx.org

Members shared their various outreach activities performed so far and the staff reminded them to submit the “TAP Speaker Request Report” on a timely manner so that this information may be incorporated into the chair’s monthly report to the Joint Committee as well as for office reports.

In summary, members shared contacts with their Local Taxpayer Advocates, networking with organizations like “AHEPA” (American Hellenic Educational Progressive Association) Chapter 31, and the various interviews recently conducted with local reporters who were writing the members’ press releases.

Nancy Ferree reminded everyone to keep the staff informed of all of their outreach activities, and if there is an expense involved, please let the staff know beforehand. This information is also very useful for the Chair and the reports he prepares to the Joint Committee.

Ferree also shared that she has made contact with all the Area 2 Local Taxpayer Advocates and many already knew who their TAP representatives were. “If you do not know who your LTA is please let the staff know.”

DFO Mapp shared that the local Philadelphia office has engaged their Low Income Tax Clinics with TAP Promotional Materials. She also stated that the Area 2 LTA’s are engaged partners with the TAP. She has invited Bly and Brubaker to attend the upcoming Stakeholder Relationship upcoming meetings, and alerted the rest to be on the look out for invitations from their LTA’s.

Coston also shared that after a recent CAP meeting with Area Directors, he has shared the TAP rosters with them. He met the Virginia LTA, Mark Campbell at this meeting, and he was advised that he already had met Steve Rue. Bernie thought that the idea of making contact with your alumni associations is a very good idea.

Closing Assessment
Before closing, all discussed and agreed that today’s meeting has been very effective and the fact that face-to-face meetings are much more effective than teleconference meetings.

Meeting Adjourned by the Chair

February 19, 2005

Roll Call
Inez E. De Jesus took the roll call and quorum of 11 was met — 15 members were present.

Welcome/Announcements for the Day
Chair opened the meeting and turned it over to Perros who made a motion that a “Thank You” letter be drafted and sent to Frances Kleckley and her superiors. The committee agreed that this was an excellent idea and all expressed their appreciation for her “Southern Hospitality”. Action item: Chair will prepare the letter of appreciation. (Coston stated that he will be doing the same.)

Perros also expressed his gratitude towards Nancy and Inez.

New Business

Director requested that the area should start thinking of ideas to submit to the new Communications Issue Committee. There are also four members on this committee that have been assigned to this new issue committee. (Hurley, Sinnamon, Tillerson, and Warnecki)

Director also shared that this committee has been very effective with photos, and News Releases; and

The TAP Name Change recommendation made by this committee previously is a dead issue.

He also planted a seed: “What are your true objectives as a panel?”

Director suggested that perhaps training of panel members for when they conduct research or deal with different types of media might be food for thought for those who do not have a comfort level.

Director also thought that partnering with VITA (Volunteer Income Tax Assistance) and manning a booth at one of these locations is food for thought as well.
Vinikoor shared that the TAP has an identity crisis; there should be an internal campaign to educate folks and in clarifying the difference. TAP versus TAS. Mapp agreed. Ferree shared that most of the calls received on the TAP Toll Free line are not TAP related.

Cain shared “What’s on TAP?”-a concept created by the Area 4 committee which did not get up and running; perhaps this needs to be sent to the new Communications Issue Committee. Coston stated that this may be also used for outreach.

Brubaker thought that one document describing what TAP/TAS does and showing the difference may be an effective tool for clarifying the purposes of each.

Mapp stated that when she has meetings they use the means of teleconference and therefore there is no need for travel expenses.

Cain inquired on “How do we know what is happening in our areas?”

Action item for Inez: send both Hurley and Tillerson, contact information on their LTA’s.

Brainstorm Ideas for Next Month’s Agenda
None

Citizen Input
None

Closing Remarks/Survey/Adjournment
Before closing, members were reminded to take the time to fill out the “TAP Meeting Satisfaction Survey” and to submit to the staff.

In summary, the committee and staff agreed that this was an excellent meeting and a great opportunity for the sharing and exchange of information. The general interaction was beneficial to all. There is no comparison with the advantages of meeting face-to-face versus via telephone. By meeting earlier in the year, the members are able to build on their strengths as they continue to address the TAP Mission.

The Director thanked everyone for doing what they do. He reported that his boss, the National Taxpayer Advocate, feels the TAP is doing a good job. He also took this opportunity to thank Nancy and Inez for their efforts; he and the panel expressed that all the hard work paid off- it was a highly successful gathering, and everyone left satisfied. Coston is also noticing that there is always a way to make things happen, and he is considering how during the annual meeting scheduling more time together for the committees. The way we currently do things might not be the best way. He is also aware that the volunteers give more than 300-500 hours during their tenure. It is important that a group like this is out there telling the IRS – “You need to make things better for the taxpayers”- and he told the committee: “You are not done yet!”

Coston and DiMartino wished everyone a safe journey home. Chair thanked the Director for his presence and for being here during the entire meeting.

Perros suggested that perhaps changing the annual meeting to be held in early October may be more effective.

Chair adjourned meeting.

Next Meeting: Teleconference: March 15, 2005 at 1:30 PM ET (90 minutes)

*These minutes were approved by consensus by the Area 2 Committee on March 15, 2005