Area 4 Committee Meeting Minutes

January 21, 2004

Present:

• James Abraham
• David Cain
• Daniel Drumel
• Robin Gausebeck
• Richard Greenberg
• Delford Jones
• Lawrence Lexow
• Leslie Malcolmson
• Robert Meldman
• Richard Morris, DFO
• Dick Murphy
• Teresa Smedley, Chair

Staff Present

• Sandy McQuin, TAP Manager
• Mary Ann Delzer, Program Analyst
• Patti Robb, Note-taker

Welcome / Review Agenda
Frank Claudman has resigned from TAP. He got a promotion and didn't have the time to devote to the panel.

ACTION: Delzer will send a note of congratulations and thank you to Claudman.

No changes to the agenda.

Announcements / Approve Minutes
Minutes were approved without any changes.

Public Input
None

Action Items
All action items are in conjunction with issues, so they will be discussed during the issue discussion and reviewed at the end of the call.

Discussion of Issues

• Refund Anticipation Loans (RAL) – Meissner
  Revisit this issue in August. Put in parking lot until then.

• Increase Acceptance of E-File – Cain
  The design for the current Electronic Management System (EMS) does not allow returns that have errors or returns whose data can not be validated. The Modernized e-File (MeF) will have these enhancements. First MeF systems will process Forms 990 and 1120 as of February. Eventually MeF will roll out to Forms 1040, etc. This system will allow IRS to keep returns and correct errors and continue to process. According to the timeline, it should be totally implemented by 2007. Rejects will continue until the MeF system is up and running. Smedley suggested that this issue be placed in the parking lot for monitoring. Consensus.

• Lien Desk Recording – Cain
  The lien recordings are in the process of being centralized. We should send out recommendations to help the process. This does not appear to be a problem with the court houses.

ACTION: Delzer will research to see what areas TAP input would have the most influence.

• Inclusion of Interest Calculation on Billing Notices – Lexow
  In the process of setting up a conference call with the program owner.

• Interest Offset and Netting – Meldman
  Still looking for the program owner.

• 1099S – Drumel
  This issue is dropped.

• FICA/Medicare Claims – Malcolmson
  Malcolmson will take over as chair of this sub-committee. She is working on a summary report.

• Just-in-Time
  Have not received a response to this elevated issue.

Parking Lot

This issue will be activated: Innocent spouse – Meldman chair, Murphy, and Abraham.

ACTION: Delzer will check with Meissner to see if he would like to be on the Innocent Spouse sub-committee.

Outreach Strategy
Five articles are now on hand. Delzer will continue working. Greenberg will rewrite/update his article on SS worksheet.

Outreach Report
Abraham – did a 30-minute television spot. Devoted time to talk about TAP.

Office Report
Delzer reviewed the remaining action items. Mr. Friese and Zuckerman received their responses.

Still did not decide on a city for the face-to-face meeting in July. Two cities are still in the running. Took a vote:

• Chicago, IL ll (2)
• Louisville, KY lllll ll (7)

The meeting will be held in Louisville , KY.

Seuntjens challenged each committee to elevate two issues by the May Joint Committee meeting.

McQuin – announced that any panel member who volunteered to extend their term for one year would be able to stay on for that extra year.

Meeting adjourned.

Action Assignments

Delzer:

• ACTION: Delzer will send a note of congratulations and thank you to Claudman.
• ACTION: Delzer will check with Meissner to see if he would like to be on the Innocent Spouse sub-committee.
• ACTION: Delzer will research (lien desk centralization) to see what areas TAP input would have the most influence.

Area 4 Parking Lot
January 2004

Slow response by IRS to correspondence

Improvements to taxpayer notification of back-up withholding

Use of outside mediators in the Appeals process

Innocent spouse—Is there a better way to screen applications up front; develop flow chart, improve education

Advance child tax credit-was it administrated correctly?

TAP Contact Database Items
Caller is an IRS employee. He has concerns over the OIC program in regard to "Doubt as to Liability." IRS will process change in tax if agrees TP does not owe the amount assessed. Despite that fact the TP lists an amount on the OIC; Exam can only adjust the tax to the correct amount on the account. Exam can not accept the dollars listed. TP must file new OIC then for "Doubt as to Collectibility." This puts the TP back into the OIC queue and they wait again for RO to consider the case in terms of collection of tax. Great burden to taxpayers to re-file OIC and begin process again. (2169)

I referred the caller to the Taxpayer advocate in Chicago for his personal problem but there is a customer service issue as well. Toll free employee told caller to call the Taxpayer Advocate Service but did not give him a telephone number so caller had to look up the number in his local telephone directory. (2173)

Unable to contact customer service reps regarding situations already discussed. This would not be as much of a problem if the service reps typed up a detailed description of the conversation and suggested resolution so other reps could get informed quickly. Also, service reps are too narrowly limited to their designated area and this can cause practitioners/taxpayers to be passed between several reps and wait on hold in excess of one hour. (118)

Person became self-employed in 4th quarter so attempted to complete Form 2210 by hand and was unable to do so by following directions. Finally got someone with computer program to help her complete form. (132)

Caller's income is over 100,000 because of all the overtime she works. She is using her skills as a registered nurse to care for her mother and disabled son. She can't deduct the expense of altering her home and vehicle nor other expenses. Nor can she deduct the value of her time used to take care of her mother and son which would be deductible if she paid a nurse. The home is in trust so she cannot deduct the mortgage interest or real estate taxes paid. The only credit she receives is the child/dependent care of $750.00 for her disabled child. But, $750.00 doesn't go very far. She thinks it is unfair to have a cap on the credit. (135)

Man called to say that he and his wife file separately every year, and every year he gets a notice that his return is missing information. He calls them every year and explains everything to them and is able to resolve it over the phone. Why can't the returns be flagged and the spouse's return checked before sending out notices and wasting his time as well as the IRS employee. The assistor told him to put a note on his return when he filed, but he is filing electronically this year. Can't there be a checkbox or some other way to flag his return to avoid this confusion year after year. (139)

CPA - Client had an audit recently and the agents (3) seemed to approach the audit strictly to say "gotcha." Did not look at records fairly. Need to get back to the kinder, gentler IRS. (2025)

Caller was very upset and wanted to provide a suggestion to the TAP regarding Form 1098, “Mortgage Interest Statement”- which recently was changed and it lists only one name. Suggestion is that the form be changed back to how it used to be where several names would appear on it when appropriate. (319)

My husband & I both work a full time and two part time jobs. We both claimed Married and 0 on our W-4 forms. We had only W-2 income and we filed on Married Filing Jointly with 2 exemptions. We had itemized with about $ 400 over the standard deduction. We still owed a large tax bill upon during our 1040 return. There is something definitely wrong with the tax charts showing the amount to be withdrawn or we are being grossly overcharged when filing our 1040. (1084)