Area 3 Committee Meeting Minutes

May 21, 2004

Members in Attendance:

• Charlotte Cassady
• Helen Curol
• Gwen Handelman
• Edward Hanna
• Sharon Lassar
• Owen Oatley
• Buck Paolone
• George Sullivan
• Agnes Tillerson
• Carolyn Lewis – DFO

Staff:

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

Guests:

• Glenn Pelishek, Printing Services Specialist
• Tony DiMartino, Area 2 Committee Member

Welcome
Committee Chair George Sullivan welcomed everyone to the May call. Plans for the face-to-face meeting are coming along. Everyone is working very hard to make it a good meeting.

Roll call
Roll was taken. Quorum was met.

Review of April 16, 2004 Minutes
Committee Chair George Sullivan asked if there was any discussion about the meeting minutes of April 16, 2004. There were a couple of corrections. The committee approved the April 16, 2004 meeting minutes, as revised, by consensus.

Subject Matter Expert – Mailing of 1040 Tax Packages
Glenn Pelishek from Wage and Investment Publishing gave a brief background on tax packages mailed to taxpayers. He said that in 1994 the IRS sent out 87 million tax packages. In 2003 they sent out 3 million tax packages. The drop in mailing is due to the use of E-Filing and practitioners.

There are 14 different tax packages mailed out. Of these 10 are 1040 booklets.

Forms are usually available the end of October. The IRS works with the printer/contractor to print and mail out the packages. Tax packages are not mailed to PO Boxes and can't be forwarded.

Approximately 61% of taxpayers either file electronically or use a preparer. These individuals do not receive a tax package. Taxpayers can order a tax package through forms request, either on the internet or by telephone. These individual taxpayers who do not receive a tax package used to receive a postcard with information on how to get the tax package, if needed. Last year less than 12,000 taxpayers requested the tax package.

Committee Member Ed Hanna asked if the Package X with all the forms in it was still being printed. Glen Pelishek confirmed that it is. Last year, there was a problem with Volume 2 as forms changed late.

This past year the packages were mailed the end of January so some didn't received them until mid-February.

Committee Member Owen Oatley wanted to know if libraries got copies of the CD rom. Glen Pelishek stated he was not sure. Area 2 Committee Member Tony DiMartino stated that libraries have the forms available on computers but might charge to have them printed.

Committee Member Gwen Handelman asked who made the decision not to send tax packages to taxpayers. Glen Pelishek said it was a 1996/97 budget issue. As a follow-up Committee Member Handelman asked what were the savings – where they substantial. Glen Pelishek stated that it cost 53¢ each for printing plus postage.

Committee Chair George Sullivan thanked Glen Pelishek for the information he gave to the committee.

Joint Committee Report
Vice-Chair Charlotte Cassady represented Chair George Sullivan and the Area 3 committee at the Joint Committee Meeting in Chicago on May 7th and 8th. She said she was impressed with the intensity of the meeting and the participants. The TAP Director asked questions and provided information. It was discussed as to whether area committee members received the Joint Committee Meeting Minutes. It was decided that all committee members should receive the Joint Committee Meeting Minutes.

The 3rd Party Authorization proposal was not approved. The Joint Committee requested it be re-written. They recommended that proposals be written from the taxpayer's point of view and to improve IRS services. Committee Members Ed Hanna, Charlotte Cassady and Gwen Handelman will work on rewriting the proposal.

On the issue of consensus, if the committee can't come to consensus, the issue can be elevated even if all members do not agree. The committee can present a majority and minority report . The Joint Committee will make the final decision.

Each committee provided a brief report to the Joint Committee.

Committee Chair George Sullivan asked about the Toll-free Issue with Area 6. Committee Vice-Chair Charlotte Cassady said that Sherry Whah was not at the Joint Committee Meeting.

Committee Chair George Sullivan thanked Charlotte Cassady for attending in his place. He appreciated her taking the time to go.

Face-to-Face Agenda
Committee Chair George Sullivan said all was going well with the face-to-face meeting at the Homewood Suites in New Orleans for the June meeting. At the present, the DRAFT Agenda is not ready to be distributed. It should be ready by next week and will be shared with the committee at that point. Designated Federal Official (DFO) Carolyn Lewis stated that meeting flyers have been sent all over Louisiana . There were a couple of other suggestions on where flyers could be sent. DFO Lewis stated she will make sure they get out.

Area 3 TAP Issues

Abatement of Low-Dollar Balance Dues
Committee Member Phil Bryant was not on the call. Since he will not be present at the face-to-face meeting in June, TAP Program Analyst Sallie Chavez went over the proposal with the committee since she assisted Committee Member Bryant in preparing the proposal. There was a discussion about one point on the proposal. This will be changed after the information is provided. It was agreed by consensus to elevate this issue.

New Issues

W2, 1099, W3
Committee Vice-Chair Charlotte Cassady stated that the Social Security Department has a new option of filing W-2s electronically and it automatically calculates W-3s. Form 1099 goes to the IRS. She would like to propose that business owners be able to input and print out copies and e-file to IRS. She would also like it to confirm the taxpayer's social security number. She feels it will save time and money for business owners. Committee Member Ed Hanna volunteered to work with Committee Vice-Chair Charlotte Cassady to write up this proposal.

Review of Assignments from Previous Meeting  

TAP Program Analyst

1. Contact #2672 (Dependency issue where a parent that is the non-custodian is claiming the deduction for the child) – TAP Program Analyst Sallie Chavez w ill get a subject matter expert to discuss this issue.
   
   TAP Program Analyst Sallie Chavez is trying to get a subject matter expert for the face-to-face meeting in New Orleans . If that doesn't occur, she will get one for a future conference call.

2. Contact #822 (processing of Form 2553 Election by a Small Business Corporation) – TAP Program Analyst Sallie Chavez along with DFO Carolyn Lewis will work on this issue.
   
   This is still being worked.

3. Contact #2607 (Taxpayer did not receive his 1040 package) – TAP Program Analyst Sallie Chavez will research this issue and report back at the next meeting.
   
   Glen Pelishek discussed this earlier in meeting.

4. TAP Program Analyst Sallie Chavez will send out referrals from taxpayers received from April along with any additional referrals received in May and the first of June.
   
   TAP Program Analyst Sallie Chavez said there have only been two (2) referrals in the last two (2) months so she will bring them to the face-to-face meeting in New Orleans.

5. TAP Program Analyst Sallie Chavez will contact Committee Member Owen Oatley about the trust extensions.
   
   TAP Program Analyst Sallie Chavez has received the name of a subject matter expert but has not had time to contact them. This will be done before the face-to-face meeting in New Orleans.

6. TAP Program Analyst Sallie Chavez will send out travel request forms for committee members to submit for travel arrangements.
   
   This was done and all committee members who are planning to attend the face-to-face meeting in New Orleans have made their travel arrangements.

Designated Federal Official
Designated Federal Official Carolyn Lewis will provide TAP Program Analyst Sallie Chavez with a list of IRS officials to invite to the New Orleans face-to-face meeting.

This has been done. More than a dozen IRS officials have been invited to the meeting. Several have already confirmed they will attend.

TAP Program Manager
Check on bound book to be sent to all committee members on marketing material.

TAP Program Manager Nancy Ferree provided this book to all committee members. 

Other Issues
Area 2 Committee Member Tony DiMartino thanked Area 3 for allowing him to participate in the call.

Citizen Input
There were no citizens on the call at this point.

Meeting Close
Committee Chair George Sullivan thanked everyone for their time.

The next meeting is the face-to-face meeting in New Orleans scheduled for June 18 & 19, 2004.

Meeting was adjourned.

ASSIGNMENTS

TAP Program Analyst

1. Contact #2672 (Dependency issue where a parent that is the non-custodian is claiming the deduction for the child) – TAP Program Analyst Sallie Chavez w ill get a subject matter expert to discuss this issue.
2. Contact #822 (processing of Form 2553 Election by a Small Business Corporation) – TAP Program Analyst Sallie Chavez along with DFO Carolyn Lewis will work on this issue.
3. TAP Program Analyst Sallie Chavez will send out referral from taxpayer received from April, May and first part of June.
4. TAP Program Analyst Sallie Chavez will contact SME on trust extensions for Committee Member Owen Oatley.