Tuesday, April 22, 2007
Wednesday, April 23, 2007
Thursday, April 24, 2007

Designated Federal Official (DFO)
Lois G. Lombardo, Local Taxpayer Advocate, Philadelphia, PA

Members Present
Kimberly Brown, Blakeslee, PA, Vice-Chair
Michael Bryant, Oakton, VA
Emilio Cecchi, North Bethesda, MD
Benson Chapman, Wayne, NJ, Chair
Blanche Davis, Rehoboth Beach, DE
Steve Fulkrod, Bel Air, MD
Richard Grzebinski, Raleigh, NC
Robert Haines, Lebanon, NJ
Carolyn Hutchinson, Fletcher, NC
Edward Johnson, Florence, NJ
Joseph Holley, Barboursville, WV
Louise McAulay, Florence, SC
Robert McQuiston, Bryn Mawr, PA
Robert Patterson, York, PA

Members Absent
James Brock, Williamsburg, VA
Peter Welch, Mooresville, NC

Staff Present
Sallie Chavez, TAP Program Analyst
Nancy Ferree, TAP Program Manager
Anita Fields, Management Assistant

Guest(s) Present
Connie Sharpe, Annapolis, MD Alternate Tap Member (4/22-24/2008)
Pam Votta, Local Taxpayer Advocate (LTA) (4/22/2008)
Robert Donatelli, Local CPA (4/23/2008)
Faith Vinikoor  Former Tap Member (4/23/2008)
Matthew Weir, Director of Advocacy Projects (4/24/2008)
Josh Beck, NTA Attorney Advisor (4/24/2008)
Keith Blair, EITC (4/24/2008)
John Snyder, EITC (4/24/2008)
Puja Madan, EITC (4/24/2008)
Michael Crumrine, EITC (4/24/2008)
Rachna Mathur, EITC (4/24/2008)

Welcome/Announcements
Ben Chapman opened the meeting and welcomed everyone to Baltimore.  He announced that everyone was present with exceptions of Peter Welch and Jim Brock due to illness.  He also stated that this is our meeting and want to have everyone to participate. Don’t be shy and if you don’t know anything about the topic to please ask.

Review/approve minutes from prior meeting
Minutes were approved as written by consensus.
Make note that the agenda has changed since 4/11.  Everyone should be working off the 4/22 agenda.  Keep in mind that times can be adjusted as we go.

Tuesday, April 22, 2008

National Office Report
It was reported that the IRS budget is very tight.  A National Office representative will not be attending any of the face to face meetings due to these constraints. Inez De Jesus will be retiring May 31st.  Ben stated that she is very hard to replace.  Now that there is a hiring freeze it will be a while before Inez’s position is filled.  We have a Junior Analyst that has joined the staff that will fill in.  Ben stated that we will work together and get through this.  That might mean doing a little research on our own.  The Annual Report is being worked. We are still waiting to hear when it will be released.  TAP tries to have a meeting with the IRS Commissioner each year; we try to have the Annual Report ready before the meeting so that we can send him a copy a week beforehand.

Recruitment Updates
There are 442 finals, 630 drafts and 84 deleted applications.  Area 2 only has three retiring members this year and two members resigned.  Hopefully we will get all positions filled after recruitment.  Ranking of applications will begin May 12, 2008.  We will ask panel members to participate in the interview process.

Ben mentioned that Bernie sent out an email regarding ethics.  The document that was sent out does not pertain to panel members specifically; there are some parts that do pertain to panel members.  Please read it and comply if it pertains with you.

Ben mentioned the TAP Mission Statement.  He just reminded everyone that the committee can work on any issue as long as it is not legislative.  If the issue is very near and dear to your hearts and does not fall into the realm of TAP, then you can write your congressman or use the SAMS database.

Screening Committee Goal(s) and New Issues
Issue 3997—Terminate “S” Election------ It is recommended that the issue is made active. The IRS did add the check box, but the regulation and the instructions still need some changes. The issue was made active by consensus and a subcommittee was appointed with Bob Haines, Kim Brown, and Bob McQuiston.  Bob Haines is the lead.
Issue 4628—Confusion on where to file Different Forms---------it was recommended that this issue be dropped by the screening subcommittee.  Bob McQuistion gave a presentation on this issue.  Everyone made good points on why the committee should or should not work this issue.   The issue is made active by consensus and Bob McQuistion, Bob Haines, Louise McAulay and Emilio Cecchi will be on the subcommittee with Bob McQuistion as the lead.
Issue 4643—IRA’s Non-deductible Part---------Not really a customer service issues; therefore it is recommended that it is dropped.  It was dropped by consensus.
Issue 4645—Debt Forgiveness/Penalty & Interest------Not a customer service issue, because it ties into legislation.  It was dropped by consensus.

Review the Processing of Issues, From New to Elevating to IRS
Ben explained the process begins with getting a potential issue by conducting outreach.  Then it goes to the screening subcommittee, then to the entire committee with the recommendation to make it an active issue.  If we can actively work it, then we appoint a subcommittee with a member leading the subcommittee.  After all the research is done and the subcommittee has discussed it, the recommendation is written up.  There is a format on TAPSpace that is available and that form should be used.  Then it goes to the internal quality control of area 2.  After it is reviewed and accepted then it goes to the Joint Committee.  The chair of that subcommittee should be on the Joint Committee call in case there are any questions that arise.  Once it makes it through the Joint Committee quality review team and it passes, it then gets elevated to the IRS.

Pam Votta (LTA) Private Debt Collection
Pam Votta the LTA for Baltimore gave a presentation on Private Debt Collection.  She reiterated the National Taxpayer Advocate’s position on private debt collection.  When it was first introduced there were three agencies collecting debt for the IRS.  After the first year one agency was dropped and now there are only two agencies collecting debt.  There are two IRS units that support these agencies.  PCAs get compensated by receiving a percentage of monies collected and an administrative fee.  TAS involvement includes:  Notice to Taxpayers, Policy and Procedures handbooks, Training Tapes and Case selection.  If a taxpayer doesn’t want to work with a PCA and want to work with TAS, TAS takes the case with no regard to criteria.  PCAs are now required to provide bi-lingual services, hearing-impaired services and opt-out provision in the initial contact letter.  The NTA calls for repeal because of the low revenue that is collected, the cost initiative and because the IRS is paying the PCAs to collect on liabilities it would satisfy without their efforts.

Bob McQuiston asked does the commission that is paid to the PCAs come out of the IRS budget.  No, it comes from a different fund.  

TAPSpace Overview
Sallie shared that TAPSpace was changed last year to ensure that all analyst were doing things the same way.  She gave an overview, with hands on training available.

Public Input
There was no public input.

Wrap up day one
Ben Chapman stated that we will go over active issues in the morning.  He also asked that everyone to please get here on time due to the first guest speaker to begin at 8:15 am.

Wednesday, April 23, 2008

Administrative/Mentoring
Ben opened the meeting and informed everyone that the meeting will not be held at the hotel tomorrow.  If they plan on leaving at the conclusion of the meeting then they can drive and park in the parking garage.

Guest Speaker, Robert Donatelli
Robert is a local CPA and a retired IRS employee.  He mentioned that he deals with TAS about three or four times a year and his experience have been pleasant and successful.  He works with LMSB offices.  Robert spoke on the CAP program where examinations work with the taxpayer before they file their taxes.  It is a very unique program.  He states that he is now seeing much more counsel involvement. There is more coordination that there was in the past.  He spoke on his experience with Appeals. The IRS has a program called the fast track appeals, when the issue is still in the examination office and they can’t come to a resolution they request a fast track appeal.  With a fast track appeal the issue can be resolved in approx. 2 months, if you go the regular route it will take about 1 year.

Active Issues Subcommittee Reports
Issue 4035—FICA Contributions Payment Beyond Statue of Limitation-----Kim Brown reported it is in litigation and it is a legislative issue.  Kim recommends that the issue be dropped and she feels that TAP can’t do anything with it right now.  This issue has been dropped by consensus.

Issue 4515—Training Issue of VITA/TCE K-1’s-----Carolyn Hutchinson reported--the chair of the VITA committee wants to send this through the VITA committee because they will get a faster response.  If it does not get the results we want then we can approach it again.  Steve mentioned that if VITA committee sends the issue through their subcommittee and the Program Owner says no, then there is no reason for Area 2 to write it up, we should just be dropped.  The committee has decided to place the issue into the parking lot monitor status.

Issue 4566--Option(s) on IRS Website------Blanche Davis reported-- based on the issue submitted, CPAs and Tax practitioners want the ability to opt-out or opt-in to receive blank forms.  They feel that they are receiving forms that they never use.  Dick mentioned that if there is not a fix already in place he feels that this will be a positive recommendation.  He feels that this will also involve the Social Security Administration.  We want to know why is the 940 excluded from the form.

Ed Johnson states that if the IRS should just send out notices asking what forms are needed and what forms are not.  It just sounds like there is a piece of communication missing.

Issue 4256—EFTPS Delay in Posting of Tax Payment---   Blanche submitted it the SAMS and it was accepted.  Once it is accepted by SAMS then TAP closes it.  The analyst stated that they have 90 days to work and close, but it can take up to one year.

Lois mentioned that anyone can put an issue on SAMS and it is evaluated by an IRS person.  IMRS is different whereas the IRS will develop an issue and work it.  Mike Bryant mentioned that he developed and issue and put it on SAMS he stated that he received an email that the issue was received.  About thirty days later he received another email that stated the issue has been referred.  He has not heard anything since and it has been a year.  SAMS has a way of prioritizing issues based on the number of taxpayers affected.  He feels that the SAMS system sounds good, but it needs better ways of dealing with issues. 

Working Issues Sessions
Ben Chapman mentioned that there are three active issues and one parking lot issue that can be made active.  Issue 4565—Additional Exemption at age 65 and over.  If this issue is made active we will need to assign a subcommittee.  Nancy Ferree suggested that this remain in the parking lot and as members do outreach throw the question out to see if this is just an isolated issue or is it systemic problem. 

Bob McQuiston reported that the issue name has been changed to Estimated Tax Package.  It is now elevated to a SAMS issue.  The IRS mailed out a written statement stating that they will be sending out estimated tax voucher next year.  In return the IRS should also mail a letter stating that they will not be sending out estimated tax. 

Blanche Davis reported that they will try to elevate this issue.  Dick will write it up and send it out to the entire committee to solicit any suggestions.  It should be out by next month.

Ben Chapman mentioned that everyone has a mentor and if you don’t know who your mentor is please see him.  Mentors are supposed to be available throughout the year.  If you have any questions please contact your mentor first and if they can’t assist you then you can contact the staff.

Ben informed the committee that as a committee we should be developing our own issues.  By chance if we just need issues to actively work then the parking lot issues from other areas are up for grabs.  Nancy mentioned that as a courtesy the other analyst should know if you want to work one of their parking lot issues.

Outreach Activities
Ben reported that we had a total of 51 outreach activities among the group.  Only two panel members did not report any.  Our goal is to get 100% of the members to report outreach. 

Kim Brown reported that some areas don’t keep track of their outreach.  Overall Area 2 and Area 3 are the highest outreach reporting group.  She explained that the number of outreaches mean number of activities not number of personnel at any one event.  Kim then introduced Faith Vinikoor a former TAP member and a former IRS employee. 

Faith talked about ideas for outreach which could bring back issues.  She feels that outreach is a twofold. (1) You want people to know about TAP and what it does and (2) you want to identify issues.  Faith stated that she has no magic way of telling you how to do outreach she can only tell you what she did.  1) Meet with your LTA if you haven’t already, 2) meet with the public affairs person from you state, 3) try to get with the LTA to meet with the Congressional staff and 4) try to attend small business seminars.  You can also go to the Low Income Tax Clinic (LITC) and find that you might get some systemic issue there because some of these issues may not be a legal matter.  One idea is that one member used the computer to solicit issues.  She got a lot of responses, just a lot were legislative.  It was a success though; just remember to indicate that legislative issues can’t be worked by TAP.

Kim reported that please use your LTA for a resource of information.  She received an email with a list of their outreach plan.  Please take advantage of these opportunities.  Nancy mentioned that all LTAs have an outreach plan. 

Ben stated that if you have not heard from you LTA then please contact them.  We need to make sure as we do our outreach we are trying to gather issues.  There are Tax Forums that are held around the country each year and that is another good way of gathering issues.  Ben mentioned that Bob McQuiston was on the board of a big newspaper in New Jersey.  He got him an interview and the article was published a couple of days later.  From that article another local newspaper from the next town over now wants to do an interview because they read the other article.  He also mentioned that he sent out flyers and other information pertaining to recruitment.

Individual Panel Members Brainstorming Session on Issues & Ed Johnson’s New Issues
Ben started by going over the parking lot issues from other areas. 

Issue 4056—Small Business Volunteer Tax Services-------Why should they get “free” help? It is difficult enough to find people to do individual returns. Lois Lombardo mentioned that the Taxpayer Assistance Center (TAC) walk-in offices use to have small business workshops.  It was just for education not for preparation.  Lois suggested that the panel should recommend that the first time a small business prepare taxes the IRS should assist.  The committee decided to make this issue active with Bob Patterson and Steve Fulkrod.

Issue 4169—Return Processing-Transferring for Adjustments------It was noted that account resolution errors are being made as tax return information is transferred to different IRS locations for adjustments.  The committee decided that this is a TAS issue; therefore they will not work it.

Issue 4340—Capital Gains Processing Errors-----Practitioner experienced a problem with the 2006 tax year return. The client met the exception to not file Sch D as client had only capital gains distributions and none was 1250 recapture or from collectibles.  The analyst will research to see if this is an isolated issue or a systemic issue.  Will do research through SAMS and IMRS.

Issue 4480—Name and SSN mis-matches continue to occur-----Conversation about rejected returns that are repeatedly refilled with the IRS and the name control issues we encounter with VITA. Area3 has already worked this issue---Sallie will provide their issue and response.

Issue 4587—Levies Issued Without Advising POA----Background is that levies are being issued without informing the POA.  ACS does not respond or notify POA.  We need more research on this issue.  This issue is in the Area 3 parking lot.  It is the next issue to be worked by Area 3.  Ben asked that if Area 3 is not going to work the issue then let him know so that Area 2 can work the issue.  Sallie said that if Area 2 is really interested in this issue they can partner with Area 3 to work it.

Cancellation of Debt---Ben mentioned that we as TAP has been asked (through ARC) to come up with grass root issues such as education by Nina Olson the National Taxpayer Advocate (NTA).  How do we go about educating people of these rules?  It was answered that we recommend to the IRS.  Nancy said this is not a TAP issue, but we can send a letter of support. Ben will discuss this issue on the next Joint Committee call because the letter will come from the Joint Committee.

Refund Anticipated Loans is another concern, the amount of fees accessed on these loans are astronomical.  The IRS regulates the tax preparers; they can’t regulate the loan affiliation.  Committee doesn’t feel TAP should be involved as it’s on Nina’s radar screen.  Maybe educational-not a customer service issue.  Why does IRS reveal “Debt Indicator”? Steve suggests this be written up for screening committee.

Ben had asked everyone to submit one issue for the face to face.  He did receive several.  

Jim Brock submitted whether TAP can deal with non-profit organizations and their issues.  No. Non-Profit Issues---they have their own advisory

Kim suggested educating high school students on their responsibility as a tax payer.  The IRS provides info to teachers—There is already literature on the IRS website.  Kim stated that we need get the word out to schools about this info and she feels that it is in the customer service interest for the IRS to do more educating of high school children. Nancy suggested that the first thing is to find out what the IRS is doing now then go from there. 

Ed Johnson submitted 6; Theft of dependents—Not something that TAP can work…too technical. 2) Expatriate Issues—There is nothing on the IRS website that allows Expats to file their taxes. 3).Person who have submitted requests for installment payments still get Quarterly receipts---Might be an issue. 4) 3 complain of employer mis-classification of employee’s----Not a TAP issue. 5). 8 people were asking about how to view accounts on line and account balances----6). Private Debt Collection (PDC) -----Issue has already been worked.

Mike Bryant---IRS spent millions notifying citizens that they will receive a refund check.  He wants to recommend to Hank Mosler the TAP chair to send a letter to the IRS Commissioner thanking him and his staff for doing a good job on notifying the elderly and disabled about the stimulus payments.  Dick Grebinski—TAC issue-----There is a TAC issue committee that will work any TAC issue. There is a monthly report that goes to the Director of TACs.

Thursday, April 24, 2008

Director of Advocate Projects--Matthew Weir
Matt began with his background.  He explained that the case advocates work cases daily, but it is very hard for them to identify systemic cases due to their workloads.  That is where SAMS come into play.  SAMS is a place where taxpayers can enter complaints about procedures, laws and etc. there is a direct link on the irs.gov website.  Systemic Advocacy is a very small division, there are many cases, but few are chosen to be worked.  The issues that are worked are worked to their logical end.  If it is not being worked as a project it is probably because of their description.  Dick Grzebinski stated most cases come from case advocates and other IRS employees, but how many come from outside sources?  It was answered practitioners submit about 20% and about 10% come from taxpayers.  Mike mentioned that he submitted a project in the SAMS and has not heard anything in a year.  Matt explained that his issue may not have been accepted as a project, but could have referred it to the division in which it pertains.  Kimberly invited Matt to the Tax Forms and Pubs/Language Services (TFP/LS) May 6, conference call because he mentioned translating of documents.  Matt mentioned that the new IRM is going to mandate that their office contact TAP with the projects that come in to see if they are already working the issue.  Mike asked out of the number of issues received how many come to resolution.  Matt explained that it is not measured in that way, but about 60% of the issues submitted are worked as a project.

NTA Attorney Advisor—Josh Beck
Josh Beck began with his background.  Josh informed the committee about how the NTA Attorney Advisors work.  He works on the PDC initiative and collection issues such as levies and such.  He also works on issues dealing with persons with disabilities.  Laura Beak works on E-File, RALs and 6103 disclosure.  He also mentioned what issues other attorneys in the office are responsible for.  Josh explained that the NTA is required to submit an Annual Report to congress not later than 31 December each year.  She is required to talk about the 20 most serious problems revolving the IRS.  The vehicles to helping taxpayers and getting things addressed are the annual report to congress and taxpayer assistance orders.  Josh talked about how in the beginning the annual report was a really thin document, but since Nina Olson came on board this document has really grown due to the great job the NTA has done.  She really gets into detail on the problem and the fix to the problem.  The way we get information for the report is to go out to LITC and the LTAs to find out what is going on in the field.  Josh talked about the piece he wrote in 2006 that dealt with issues that affect taxpayers with disabilities to include: Communication, outreach and education.  He also wrote a piece in 2007 about taxpayer with disabilities with small business or entrepreneurs and problems they have. 

Josh mentioned they are thinking about placing a calculator on irs.gov to assist ageing taxpayers in calculating the amount needed to be taken from their IRA at age 70 ½ and how much of that is taxable depending on the type of IRA you own. Also it will help calculate what part of their social security is taxable.  He stated that he will be talking to Bernie Coston to see how TAP can help with this initiative.  He stated that how wonderful the TAP is with the volunteering.  He thanked them for all of their help and mentioned that TAS is very appreciative of the work that TAP is doing and the volunteer service that they are putting in to help taxpayers.  Bob asked was the people in the meeting he attended aware that the TAP is working on the social security worksheet.  Josh said yes they are aware and now they are working that issue.  Josh told the committee that their committee is very small, they have four issues now that they are working on:  social security worksheet issue, IRA distribution issue, 1099 issue and taxability of income issues.  He stated that they are really open to ideas and input.  There are two other parts that was not mentioned.  They are the ten most litigated and legislative issues.

Low Income Tax Clinic (LITC) Presenters---Prof. Keith Blair and Prof. John Snyder
Prof Blair and Prof Snyder brought 3 third year students along.  They each spoke on different topics. Rachna Mathur spoke on Collections and how the clinic offers clients assistance in setting up installment agreements, offers in compromise and collection due process hearings when appropriate.
 
Puja Madan spoke on the Earned Income Tax Credit. She emphasized the fact that many taxpayers do not know the requirements and is often eligible yet fails to file for the refund.
 
Michael Crumrine discussed Innocent Spouse Relief and the possible problems that couples who are married filed jointly and run into and the provisions in the Internal Revenue Code that provide guidance to those problems.

The professors explained where to find their link on the website and what type of cases that they work.  Question, do you charge a fee.  Answer, No there is no fee.  If the client has to go to tax court then they are required to pay court cost.  Question, are you a government employee?  Answer, No we are affiliated with Law Schools.  The students earn education credits. Number of cases depends on the number of students in the clinic at any given semester.  The LITC is required to re-apply for funding every year and have to send an annual report to the National Taxpayer Advocate to use for her report. 

Wrap up Day three and close
Ben reminded everyone to complete the meeting survey form and to also note that the travel expense form is in your folder.  He wanted to say farewell and thank you very much for the work that you have done during your three year stint to the three retiring members; Blanche Davis, Bob Haines and Emilio Cecchi.  The meeting was adjourned at 11:05am.

Next Teleconference Meeting:  May 21, 2008 at 2:30 PM ET