Area 4 Committee Meeting Minutes

Face-to-Face Meeting
Memphis Marriott Downtown
April 25-26, 2005

Present

• Jim Abraham
• Maureen Amos
• Larry Behnkendorf
• Adrienne Bell-Stampley
• Bob Broniarczyk
• Paul Duquette
• Dick Greenberg
• Donna Hafer
• Steve Hoffman
• Delford Jones
• Mary Ann Lawler
• Leslie Malcolmson
• Joseph Meissner
• Don Miller
• Lovella Richardson
• Ferd Schneider
• Teresa Smedley, Chair

Absent

• F. Patrick Matthews

Staff Present

• Mary Ann Delzer, Program Analyst
• Sandy McQuin, TAP Manager
• Richard Morris, DFO
• Patti Robb, Secretary

Guests

• Donna Wess, Memphis LTA
• Bessie Franklin, Systemic Program Analyst
• Stephanie Young, Senior Analyst
• Dave Flom, Commercial Appeal Newspaper

Welcome / Review Agenda
Smedley welcomed all to the only face-to-face meeting of the Area 4 Committee.

Morris told everyone that they should be hearing from their Local Taxpayer Advocate.

Area 4 Chair Report / TAP Director Report
Smedley stressed the importance of the outreach reports. They are needed so they can be compiled for the TAP Annual Report. She said that there is a new committee in TAP monitoring the issues that have been elevated and closed. Malcolmson said that when the Internal Revenue Service (IRS) comes to an issue committee, the committee eventually makes a recommendation. The issue is then closed, but the committee doesn’t actually know the outcome. We recommend that the issue stay open until we see an outcome or see it come to fruition. If we don’t see a firm resolution, it will stay open and be monitored to see the outcome of the recommendation. You will be hearing more from this committee.

McQuin said that recruitment opened on April 1 and will close April 29. At this point, we have very few applicants from Indiana. We contacted applicants from Indiana whose applications were still in draft status and encouraged them to finalize them. As of last Friday, April 22, we still had 300 plus applications in draft.

Coston said we got approval from the Commissioner to have the annual TAP meeting in Washington, D.C. There are currently two hotels interested in hosting the meeting scheduled for November 3-5, 2005. We will also be looking at the agenda to identify more time for the area and issue committee breakouts. Also, we not are taking the month off after the annual meeting. That one month delay was really noticeable.

• Measurements committee – we started looking at what we want to measure. Volume does not drive us, quality does. We will be building our foundation by looking at the organizational profile.
• The TAP staff will be meeting the week of the Joint Committee meeting in May. We are going to look at what drives TAP and then will come back to TAP members and do the same thing.
• Jim Abraham submitted a legislative form and it will be implemented very soon. TAP does not work legislative issues but this is an avenue for members to send the legislative issues and comments forward. The issue will be entered on the System Advocacy Management System (SAMS) database. We can track them this way. We cannot elevate recommendations for legislative issues but the NTA can bring them up in her annual report to Congress. One of the ways she identified her top 20 issues is using SAMS. If you do identify a legislative issue, check the NTA’s top 20 list in the report to Congress to see if it has already been mentioned.
• We are still looking at whether the TAP term will be two or three years. The current Charter (which has not been approved at this time) will recommend a three year term. This will work as far as filling one-third of the panel each year. However, we will probably never get to exact numbers.
• Be aware of what TAP was founded on. Make sure your voice is heard and heard effectively. Because of your voice, phone service in the TACs was not discontinued. You were sent the NTA’s and the Commissioners comments on closing some of the TACs. Both were sent so you wouldn’t be biased. The Joint Committee decided to write a letter to the Commissioner expressing their disappointment at not being contacted for their opinion regarding the closing of the TACs.
• Telefile is going to be done away with completely.
• The Communication Committee is looking at internal and external ways to get the word out about TAP.

Memphis Campus Advocate Report
Donna Wess, Memphis LTA, said there are two types of work in TAS; individual (ICW) case work and systemic work. ICE – sometimes the taxpayer is not treated fairly. We can issue a Taxpayer Assistance Order (TAO) in that instance. The NTA can deal with the systemic problems. If you lose the ability to interact face-to-face, it can be a bad thing. Not everyone has electronic ability and that’s where TAS comes in. We are there to break log jams. We are now measured under balanced measures. The NTA ensures that balance exists. What is happening in campuses that will affect you? Right now, some campuses have no work and some have lots of overtime due to the reorganization. The types of work in Memphis right now:

1. One out of every three cases is related to a criminal investigation case. That’s probably because of the large volume of people going to bad preparers. However not every taxpayer is innocent in these cases. Stolen identity is a new issue too.
2. Combined annual wage reconciliation is another type of case
3. EITC reconsideration cases
4. High income non-filers – we will file returns for these taxpayers. This usually gets their attention.

Conversation With Mark Pursley, Director, Stakeholder Partnerships, Education and Communication (SPEC) Regarding VITA Issues
As a result of the Area 4 VITA inquiries, Mark Pursley asked Area 4 to take over (be the repository) of TAP VITA issues. The VITA subcommittee will be the centralized place for all VITA issues. Pursley will be the Program Owner for this subcommittee and that is a good thing because he really is the actual decision maker and is very knowledgeable about this issue.

VITA Subcommittee Members:

• Donald Miller
• Paul Duquette
• Dick Greenberg
• Teresa Smedley
• Jim Abraham
• Maureen Amos

Sottile said Coston identified Area 4 as the VITA committee. With issues being consolidated, it will be much easier to respond. The questions and recommendations should be coordinated with Sottile and Pursley. We want this subcommittee to be a sounding board on issues for IRS. This will be a hybrid committee. Coston said that Area 4 seemed to be a catalyst for this issue. They already elevated three recommendations so it should be a good fit. Copies of issues and recommendations would be provided to the Joint Committee but the subcommittee will work directly with Pursley.

Pursley said he has read the recommendations already sent forward.

Don Miller wrote most of the recommendations. He works at a large VITA site and noticed a definite fall off in support from the IRS. The IRS used to arrange for instructors, but now it is left up to the site coordinator to do it. The IRS is also not much help in locally publicizing the VITA site. The sites used to provide forms and publications as a service but last year had a difficult time getting them. We finally had to get help from our local Congressman to get them. Miller said he has spoken to ten to twelve people from other VITA sites and they had the same experiences.

Pursley said that prior to 2000, the business model was a direct model. Revenue agents and revenue officers were allocated to provide support; volunteers, training, software, computers, etc. It was a labor intensive model and they processed 1.1 million returns. SPEC was created in 2000. We adopted a partner or intermediary model and there were shared values. We expanded to include financial literacy. Partners would have initiative to support these and it would enhance the substance of these programs. This year we will do more than 2.1 million returns. We have greatly expanded the capacity of partners and have a broader array of bases. We do not have the wherewithal to provide training to everyone and there is a narrow window for training.

There is:

1. community based voluntary preparation
2. military based voluntary preparation
3. AARP
4. tax law training
5. software training

Everyone wants training in the same time-span. We do not have the resources to train everyone. Now we have “train the trainer.” We would train the partners and they in turn would train the volunteers. As far as resources, our overall staff count is reduced. Monies spent have been steady or increasing. We have decreased the amount of time spent training. We support 280 community base coalitions and the demands have expanded dramatically. Resources have not. Only in a relative sense has it gone down.

Miller said the business model makes conceptual sense. Part of the problem may be finding a strong partner. TCE seems to work very well because AARP is a strong supporter.

Pursley said you need a partner to take a strong leadership role. A significant number of coalitions have finished their fourth filing season. There needs to be a driving force. The organization needs to see a business value worth investing in.

Greenberg asked how you know VITA sites have volunteers strong enough to train to certification.

Pursley said they endorse the VITA test. A volunteer must take the training and test before they gets put on the list. One element of our quality is to check names if a volunteer is at a site. We do have a formal checks and balances. In about 98 percent of the cases, we have found volunteers are certified. If they aren’t certified, they are removed from tax preparation. There are over 14,000 sites.

Miller asked if there is a document that describes duties.

Pursley said yes there is and he will send it out to the committee.
Miller said that local IRS offices did not know where the VITA sites are and the hours in many cases.

Pursley said based on the survey, less than 4 percent of individuals learned about the VITA site from publicity. The majority (over 40 percent) is by word of mouth. Posters, flyers, and media are a distant third. Many of these sites currently work to their capacity. If the IRS attempted to increase publicity, would the sites be able to accommodate more filers? The feedback we got is we are turning away more folks than are filling our chairs. We defer to partners regarding publicity. Regarding hours and publicity services, it is very hard because of all the variables in play. There is so much flux in the program. The best source of information is the partner itself. You need enormous diversity and ability to reach a great many people.

Schneider said we need to recruit local partners. Is there a system in place that would have an interest in supporting low income?
Pursley said yes, there is a strategic partnership. He will share the list of national partners. They provide strategic information structures, access and local support through affiliates. They are a critical and key part of the program.

Miller said it would help if we knew what the partners and the IRS can provide.

Pursley said these are general guidelines and not specific. The territory manager has discretion how to apply their resources. Things can change dramatically from year to year.

Meissner said he works with LITC and asked about VITA filling out Schedule C.

Pursley said our policy is not to do returns if we are not trained and we do not train to do Schedule Cs. We train in basic, wage earning and pension.

Meissner asked if VITA sites are trained enough to recognize retirement savings credit.

Pursley said issue should be recognized by trained volunteers.
Greenberg said he has been with AARP for 14 years and just recently have had trouble getting forms.

Pursley replied that our general position is providing services. In terms of resource materials, SPEC supplies those; however, they are shifting to obtaining forms electronically.

Abraham mentioned that there is a very short window after April 15 to e-file. Due to rejects, they do paper returns the last two weeks of the filing season. Is there any way to extend beyond the seven days to resubmit rejects? He said he submitted this issue before but was told it is legislative.

Pursley responded that he didn’t know but would find out. AARP has done an extraordinary job. As we go through our assessment process, he would like to share with you. Have formal partners and would like to provide you with training, product development, and tap into your insight by sharing.

Smedley said that three Area 4 panel members were involved in improving training materials last year. Can we do it again this year?

Pursley said yes, that is a win-win situation. That would probably be late May or early June. Sottile said she would be in touch with McQuin.

Miller said the subcommittee will discuss this during the breakout session this afternoon. We will be getting information from Pursley so should put off making decisions until we receive these materials.

Pursley offered to call in during the subcommittee conference calls.

Coston said this is a unique opportunity.

ACTION: Pursley to provide the VITA subcommittee the following:

• General guidelines that IRS developed for partners’ responsibilities.
• 2005 Quality Assurance results for VITA
• IRS assessment of partners
• IRS 2006 plan for the VITA program

ACTION: Delzer to post to TAPSpeak materials received from Pursley.

Discussion of Current Issues

• Form 990 – Delzer
  Haven’t done much since we reopened this issue. Duquette has volunteered to be the chair of this subcommittee. We sent recommendations and received a response from Steve Miller, Exempt Organization. Feel the recommendations were never implemented. Team - Duquette, chair, Abraham, Malcolmson, Meissner, Lawler, and Hoffman

• Refund Anticipation Loans (RAL) – Meissner
  There are 12 million RALs every year. Two-thirds are low income. $1.5 billion lost in interest (200% to 700%); charges for processing and check cashing charges. $35 billion given per year in EITC.
  
  Team – Meissner, chair, Schneider, Greenberg, Smedley, Abraham, Amos, Duquette, Broniarczyk, and Malcolmson.

• Customer Service – Behnkendorf
  The subcommittee has had one call so far. They identified some issues and are gathering information: call center transferring calls; loss of support for VITA; little space on computer files for historical data; forms not available in TAC sites.
  
  Team – Behnkendorf, chair, Duquette, Bell-Stampley, Hafer, Miller, and Richardson.

• VITA – Miller
  The subcommittee has met once. Delzer said this issue was being worked in another area but Area 4 will coordinate. Will talk to Billy Hubbard, Tax Specialist in SPEC, and Mark Pursley, Director, SPEC. Will come up with a list of recommendations during the breakout sessions this afternoon.

Sub-Committee Breakouts

Tuesday, April 26, 2005

Welcome / Announcements / Review Agenda
Smedley said she hoped to review sub-committee accomplishments today.

Discussion of Elevated Issues

• Lien Processing – Smedley
  There is a conference call on May 2 at 2:30 pm ET. This will be a briefing on centralization. Panel member David Cain from Area 2 will be on the call.

• Innocent / Injured Spouse
  Still don’t have an answer to our recommendation to change the name. Regarding previous suggestion for improvement to Form 8827, Dave Harris, of TAS Systemic Advocacy, requested a copy of Area 4 recommendation. He is working on a team re-writing the form and wanted to present TAP input.
  
  ACTION: Coston will follow up on Innocent / Injured Spouse recommendation that has not been received a response.

New Issues/Review of Parking Lot
# 2618 – How many “no changes”? How long are they taking on average? This could be a possible notice clarity issue too. Dick Greenberg will take this back to the Notice Committee. Leave in parking lot for now. Review data and update.
ACTION: Delzer to research no change rate/cycle time on EITC audits.
ACTION: Greenberg to share EITC audit issue with the Notice Committee.

# 2967 – Drop from list.

# 2971 – Put on legislative form and follow-up from what Mark Pursley is doing. Drop from list.
ACTION: Pursley will research E-file rejects and extended time to file. If confirmed to be legislative, Delzer to forward on legislative form.

# 3118 – Drop from list. Respond to taxpayer if contact information is available. Area 3 is working this issue.

# 3130 - Keep in parking lot.
ACTION: McQuin will research to get current status and will report back to the committee.

# 3198 – Keep in parking lot.
ACTION: Delzer will research EITC and military pay issue and report back at the May meeting.

# 3200 – Send this issue to the Notice Committee. Respond to the taxpayer with this information.

# 3203 – Drop.

# 3204 – Give this issue to the SB/SE Committee. Ask them to give us their response. If we don’t feel the response is adequate, we can address it at that time. Keep this in the parking lot.
ACTION: McQuin will contact the SB/SE program owner regarding non-compliance in construction industry.

# 3205 – Give to SB/SE. Drop.
ACTION: McQuin will contact the SB/SE program owner regarding creating immediate benefit to filing.

# 3206 – Keep in parking lot.

# 3411 – Drop.

# 3459 – Drop.

# 3461 – Drop. Respond to person to contact broker.

# 3487 – Delzer will write to the taxpayer. Drop.

# 3488 – Keep in parking lot (Just-in-Time issue)

# 3489 – This issue should go to Forms and Pubs to work.
ACTION: Delzer to forward issue to Denise Fayne of Forms and Publications for her consideration.

Sub-Committee (Breakouts) Reports

• VITA Sub-committee – Discussed a conference call with Billy Hubbard. Certification process? Mark Pursley will send information regarding contracts. The volunteers will develop a test in Atlanta. Committee: Bell-Stampley, Abraham, Schneider, Broniarczyk, Miller, Richardson, Meissner, Hafer, and Amos.
  ACTION: Delzer to set up a conference call with Billy Hubbard.

• Refund Anticipation Loans (RAL) Sub-committee – Spoke to Betty Martin. The Direct deposit indicator was explained. Have had contact with Randy Swartz, Director, LITC. They are doing a questionnaire and will send to Swartz for his approval. They are looking for RAL ads and looking for ideas about RALs. The Direct deposit indicator seems the best possibility. A summary will be written and sent to the Area 4 members in the next couple weeks.

• Customer Service – Many issues identified were not viable to work. One issue however was identified to work – lack of form availability in Taxpayer Assistance Centers (TAC).

New Issues
Greenberg said that the IRS states that the average taxpayer spends 29 hours to complete their tax returns. SB/SE has been looking at this. These numbers are over inflated. They (IRS) are coming out with a new formula. These numbers are figured by OMB. The IRS is going to use a new contractor to do the formula for the amount of time taken to complete returns.

ACTION: Greenberg will write up this issue and Delzer will put it in the parking lot until the new formula comes out.

Outreach Report - McQuin
Each individual will come up with an individual strategy. A member from the new Communication Committee will work with each member and committee to develop goals. Outreach can be talking to a neighbor or to a group in your community, at tax forums, LITC sites, etc.

Do you want yours to be formal or informal? When a Local Taxpayer Advocate (LTA) has an outreach, see if you can be included. You need to identify outreach opportunities in your own community. Don Miller suggested getting the strategy developed by the Area 3 Committee last year.

Maureen Amos, Communication Committee, said as they see IRS articles, they are trying to contact the author to follow-up with an article on TAP. If Ad Hoc does not follow up with What’s On TAP, Area 4 would like it back. A lot of hard work went into these articles. We identified several publications that were willing to publish our articles. Abraham and Amos are on the Communication Committee and will bring this up to them and report back.

ACTION: Delzer will email the press release template to members.

ACTION: Delzer to send members copies of the Area 3 communication strategy.

ACTION: Committee members should email Delzer with the number of outreaches you commit to do individually.

ACTION: All committee members should complete a speaker report for each outreach and send to Delzer and Smedley. It is important to send these reports to Delzer so she can add them to the database. These reports are used for the annual report.

Office Report – Coston
Bernie thanked everyone for their time and for meeting in Memphis this week. He noticed the rapport between the new and old panel members and cannot tell them apart. He said he is ecstatic that the transition is going so well and applauds the old members and thanked them for their time and dedication. You have set the standard for the new panel members. You are a testament as to how we evolved. It is up to TAP to ensure the voice of the citizens is heard. Keep up this great job. Smedley thanked Coston for coming and said she was comfortable that the new members will pick right up where the old members left off and they will keep right on going. Greenberg said the Citizen Advocacy Panel (CAP) came to be because of RRA98. Then the new administration expanded it to all 50 states and Puerto Rico and changed the name to Taxpayer Advocacy Panel (TAP). TAP has proven itself and will continue to do so. He said he has a great respect for everyone he has ever met who works for the IRS. They are hard working and very dedicated.

Closing
Morris - it was a great meeting. A face-to-face meeting is a great help.

Broniarczyk - you get much more done at a face-to-face meeting.

Bell Stampley – appreciates being part of the panel. And it helps to meet face-to-face.

Amos – it was a pleasure meeting everyone. The face-to-face really helps to build relationships.

Hafer – feels more connected now. The November meeting was a bit overwhelming.

McQuin – is in awe of all you do as volunteers. A face-to-face meeting means so much more.

Donna Wess – this meeting was great. I learned so much and hope to get together with everyone again.

Abraham – is grateful that Nina Olson, National Taxpayer Advocate, approved the legislative form he devised to elevate legislative issues to her attention. He said he will never forget the staff.

Hoffman – said a face-to-face is so much more beneficial than a conference call.

Miller – agreed with Hoffman and added that two face-to-face meetings would be even more beneficial.

Malcolmson – volunteers a lot and is so impressed with TAP. Thanks to all.

Richardson – impressed with the knowledge and expertise of everyone on the panel.

Delzer – thanked everyone for their attention to all the emails she sends them.

Meissner – has been on the Panel for three years and feels like there is a lot of work to done yet. Taxes are the lifeblood of the US. Many dreams come with everyone when you join TAP. Everyone finds a way to contribute. It is very positive and rewarding. He thanked the IRS staff. They were always responsive, particularly Delzer. She responds immediately.

Jones – agrees with Meissner and Abraham. He thanked his fellow panel members, the staff, and the Chair.

Behnkendorf – was glad to have a chance to get together. They made a lot of progress.

Duquette – TAP is one leg of a three legged stool. VITA and TCE are the other two legs. He feels he is contributing something.

Schneider – the collective energy has caused him to want to do more. He said he couldn’t wait to go home and get some things done. The meeting inspired him.

Lawler – there is great value in a face-to-face meeting. Feels reinvigorated with the panel.

Smedley – being the Chair has been easy. The staff and you make the job easy. This Area will come up with good options. Thank you for making me look good. The energy has been palpable these past two days. And we still have six months to go.

Meeting was adjourned at 11:00 a.m.