September 19, 2003

Members in Attendance:

• Phil Bryant
• Gwen Handelman
• Edward Hanna
• Keith Johnson
• Sharon Lassar
• Owen Oatley
• George Sullivan
• Carolyn Lewis – DFO

Staff:

• Sallie Chavez – TAP Program Analyst
• Nancy Ferree – TAP Program Manager

Guests:

• Nina from Microsoft

Welcome
Committee Chair Edward Hanna welcomed everyone. He announced that we have a new panel member coming on board at the October meeting, Larry Hayes from Tennessee.

Roll call
Roll was taken. Quorum was met.

Review of August 22, 2003 Minutes
Various corrections were made to the meeting minutes and not all members have been able to review them. Also, Committee Member Gwen Handelman stated she had corrections that she wants to make but she would like to review the most recent version before she made the correction. The minutes will be approved during the meeting in DC next month.

Report of Elevated Issues
Committee Chair Ed Hanna stated he wanted to bring the entire committee up to date on elevated issues.

At the Joint Committee Meeting in Denver, Committee Chair Ed Hanna presented Committee Members Owen Oatley and Gwen Handelman's suggestions on the Schedule K-1. Several of the Joint Committee Members were against it because of the additional burden it would impose. The issue did not get approved.

The issue concerning Employee Contacts was approved and elevated. Committee Chair Ed Hanna thanked Committee Members George Sullivan, Owen Oatley and Gwen Handelman for all their work on this issue. The second part to this issue concerning having the National Treasury Employee Union President addressing the panel met with opposition. All the Joint Committee Chairs except for Ed Hanna and Gwen Handelman voted against it. However, the Panel Chair, Tom Seuntjens, will try and have the union president address the Joint Committee at a later date.

Committee Chair Ed Hanna stated Committee Members Buck Paolone and Tim Jarrell worked very hard on the telephone issues. The ideas were good. Area 2 formalized excellent proposals; these were accepted with the proviso that Area 3's proposals be combined with those of Area 2. Also Area 6 is also coordinating their Telephone Listing/Answering Quality recommendation and elevating it as a separate Issue. The Joint Issue from Areas 2 and 3 will encompass numerous recommendations and is the first joint Areas elevated Issue.

The issues concerning the Check-the-Box was not accepted but the Joint Committee came back and asked for more research to be done. TAP Program Analyst Sallie Chavez is working on getting this research done.

Committee Chair Hanna stated he wanted to review all the issues the committee has talked about in the last year.

OIC – Committee Members Keith Johnson, Owen Oatley and Sharon Lassar are working this. This issue is in the parking lot . Committee Chair Hanna stated that he has recommended that this be converted into an Issue Committee but has not received any response.

Eliminate “Red” copy W-2 Requirements - There was a Subject Matter Expert who reported on this issue. It was decided to drop this issue.

Notice Responses Timeframe – This issue was referred to the Notice Issue Committee. This issue should be considered closed .

Estimated Tax Payments Available on Internet or via Phone – This issue is still being actively worked and researched.

Customer Fairness and Respect – This issue has been elevated .

Processing W-4s – Committee Member Sharon Lassar stated that she wanted to talk to one of the other area committees who is also working on this issue. She said it can stay in the parking lot for now.

Telephone Listing/Answering Quality – Some of the suggestions are being incorporated in reports. The committee should hold off for now. The committee will be working with Area 2 on it.

Walk in Office Review (Taxpayer Assistance Centers) – This issue will be discussed in more detail at the face-to-face meeting in Washington, DC.

Need for Specialist for clergy returns and information – This is another issue where a Subject Matter Expert addressed the issue to the committee. Committee Chair Ed Hanna asked if it should be put in the parking lot or dropped. After some discussion it was decided to drop this issue.

Schedule K-1s – This issue was presented to the Joint Committee. It will not be elevated.

Military Special Information – Committee Member Owen Oatley stated he has additional information and would like to put this in the parking lot .

Estimated Tax Penalty – This issue is currently being researched. It will be put in the parking lot .

Quarterly Estimated Tax Payments – This issue is active . Committee Chair Ed Hanna will handle it with the assistance of Committee Member Keith Johnson.

Health Benefits – Committee Member Gwen Handelman stated that she has asked for research into what IRS has on this issue. TAP Program Analyst Sallie Chavez stated that she has requested information from the IRS but has not received anything yet. She will try and get a subject matter expert to speak to the committee.

Tax Advice – This issue falls into the category with the telephone and will be worked with Area 2.

Materiality – Committee Member Phil Bryant stated that he has asked some questions about it but has not gotten together with TAP Program Analyst Sallie Chavez to do anything else. It is still being worked.

Refund Check Envelope – Committee Member Owen Oatley stated that he recently saw a refund check envelope and it does indicate that it is a refund. He will forward the envelope to TAP Program Analyst Sallie Chavez for the committee.

Electronic Deposit on 1040X – Committee Chair Ed Hanna stated he discussed this at the Joint Committee Meeting and they were supportive of the idea. Committee Member Sharon Lassar will write up a proposal for the October meeting.

Selection of Chairperson and Vice Chairperson for fiscal year ending October 2004
TAP Manager Nancy Ferree asked if there were any nominations for Chair or Vice Chair. Committee Members George Sullivan and Keith Johnson stated that they would like to nominate Committee Chair Ed Hanna to remain as Chair. Committee Chair Ed Hanna stated that he couldn't continue. Committee Member Gwen Handelman stated she would like to nominate Owen Oatley. Committee Member George Sullivan suggested that maybe it would be a good idea to have each committee member polled to see if they would be interested in being chair or vice chair and then to have the election at the meeting in Washington next month. It was decided that the TAP staff would contact each member and see if they are interested.

New Issues
TAP Program Analyst Sallie Chavez started the discussion with the new issues that have come into the program in the last month. The first one is Contact #2306 . Member of NATP states that extensions are causing him problems. “1. Currently, when a practitioner phones in extensions to the IRS, the practitioner is required to call back with each separate taxpayer's extension. He suggests being able to phone in more than one at a time. 2. Allow the practitioner to send in (fax or mail) an abbreviated form, listing all of their clients requesting the extension, which would have columns for taxpayer's name, SSN, tax owed on return, tax paid and balance due.

3. Allow pracititioner to electronically file, or file online, extensions including multiple requests at once. Each of these suggestions would: 1. Improve the efficency of filing the extensions by the practitioner. 2. Provide the IRS with accurate information, which is already input to the computer, if allowed online filing. 3. Improve IRS efficiency if practitioners can input themselves.” DFO Carolyn Lewis stated that there may be a case of disclosure if this is done. Taxpayers are required to attached a copy of the extension to their return when they file. DFO will research this. Committee Members Owen Oatley and Sharon Lassar said that this is not required any more. Committee Chair Ed Hanna asked for a Subject Matter Expert to discuss this with the committee at a future meeting.

The next issue is Contact #2332. “The checkbox on the 1040 is not being handled properly by IRS personnel. Practitioner states that he has been experiencing a lack of understanding of the checkbox procedures by IRS employees. Several of his clients have brought him in letters from the IRS on the processing of their return. He has never received anything from the IRS on these clients even though he checked the box on the 1040. He feels the IRS is not handling the checkbox correctly. If the IRS had contacted him directly, the problem would have been resolved immediately without the client even knowing there was a problem. Analyst advised him that the Area 3 committee was already working on a recommendation relevant to his suggestion.” Committee Chair stated that this is a valid point. This issue has been elevated. Committee Member Gwen Handelman stated that it was forwarded to counsel for advice. TAP Program Manager Nancy Ferree stated that this should be documented in the annual report.

Citizen Input
Committee Chair Ed Hanna asked the visitor if she would like to address the panel. She stated that she was just listening.

Plans for October Meeting
Committee Chair Ed Hanna asked if everyone had made their travel reservations. A comment was made about the hotel reservations. TAP Program Manager Nancy Ferree confirmed that all hotel reservations have been made. Confirmation numbers will be forth coming. Committee Member Keith Johnson asked if he could get directions from the airport to the hotel. Committee Member Gwen Handelman stated that the metro goes from the airport to the hotel. TAP Program Manager Ferree stated that there was additional information about the hotel on TAPSpeak. If there are any other questions, just contact the TAP office. There is no problem taking a taxi from the airport to the hotel. The hotel is in downtown Washington. DFO Carolyn Lewis asked if the Agenda was final yet. TAP Program Manager Ferree stated it was not.

Committee Chair Ed Hanna advised the committee members that he would have to make a 10 minute presentation to the entire panel and he would like any of the committee members to contact him with any information for the report.

Meeting Close
Committee Chair Ed Hanna thanked everyone for his or her time. He looks forward to seeing everyone at the meeting in Washington, DC, October 2 – 4, 2003.