Area 4 Committee Meeting Minutes

Conference Call
May 24, 2006

Designated Federal Official

• Betty Martin, Nashville Local Taxpayer Advocate

Committee Members Present

• Maureen Amos, Illinois
• Larry Behnkendorf, Michigan
• Robert Broniarczyk, Illinois
• Paul Duquette, Wisconsin
• Donna Hafer, Kentucky
• Joe Hurr, Ohio
• David Meister, Wisconsin
• Don Miller, Tennessee
• Marie O’Donnell, Illinois
• Lovella Richardson, Tennessee
• Ferd Schneider, Ohio

Committee Members Absent

• Rashidah Abdulhaqq, Ohio
• Kimberly Chowning, Indiana
• Steve Hoffman, Ohio
• May Ann Lawler, Michigan
• Jerry Melchior, Indiana
• Allen Scioli, Michigan

Staff

• Mary Ann Delzer, Program Analyst
• Patti Robb, Secretary

Welcome / Roll Call
Quorum met.

Chair Report:
Approve Minutes of April 25, 2006
The minutes were approved by consensus.

Joint Committee Report
The bulk of the meeting was devoted to TAP’s meeting with the Commissioner. There are several issues the Commissioner wanted TAP to address.

1. Section 7216 regulations (selling taxpayer information)
2. Return preparers regulations (licensing)
3. The direction of VITA/TCE (as TAC offices decline, what role are VITA/TCE going to serve)
4. Private collection agencies (parceling out of “old” debts to collect on behalf of the IRS)
5. The availability of “Free-file” for taxpayers (this year, the ceiling was cut back)

VITA Report for the Commissioner
Regarding the VITA / TCE issues, Larry Combs asked that the area committees respond to the commissioner rather than the VITA Issue Committee, and so Area will own this report. As a result of the Area 4 VITA subcommittee last year, the IRS decided to have a VITA Issue Committee this year. This report should not be a burden as the work has pretty much been done during the VITA face-to-face meeting a few weeks ago. Don Miller suggested that the minutes from the VITA meeting be forwarded to the Area 4 members for their review. We can review and put something together at the Area 4 face-to-face meeting. Schneider felt this suggestion valid, as we have to educate ourselves before we can respond. Miller still has information from the subcommittee work and will send to all members. Delzer suggested the draft report be shared with all TAP members to review before finalized. Schneider felt the response would almost write itself with all the information coming out from the VITA meeting.

Duquette requested to see all the information, as an Area Committee should come up with an independent response. It may not be the same as what the VITA committee is doing today. Commissioner is looking for how to expand VITA. His comment to my questions at the meeting is that he is willing to spend money. He realizes that better software and support is needed and is willing to do this. VITA will not take the place of TACs, but it has the ability to grow and expand as the countries population changes. Currently the majority of TACs are located on the east and west coast, but the population is growing in SW and S. IRS can support VITA with less cost as opposed to new TACs. He wanted our ideas as to how we see this expanding. Think about; it is possible to train volunteers to answer questions on the phone? Is it possible to open more VITA sites in partnership with other government agencies such as county agencies? Would they be supportive and how would they support the people they are already serving. The Commissioner is looking for other partners. One of his concerns are the Refund Anticipation Loans (RAL). He was not happy that over 60% of low income people who go to preparers take out a RAL. Only about 4% do the same when VITA prepares their returns. That is a huge discrepancy.

Delzer suggested that a lead be chosen to write this report. Maureen Amos agreed to prepare a draft that can be used to build on. The report format will be forth coming from Combs.

ACTION: Delzer will forward the May VITA meeting minutes when available to all members of Area 4.

ACTION: Miller to send all Area 4 members research done last year by the VITA subcommittee.

ACTION: Amos to prepare a draft report for the June 27 Area 4meeting.

Issues to elevate by June 29
The Joint Committee would like to know how many issues each Area hopes to complete by June 29, for agenda purposes for the their face-to-face meeting. Schneider advised them that Area 4 would have no more than five issues.

Chicago Agenda
Travel to Chicago will be on July 13. The meting will be July 14, 8 a.m. to 4:30 p.m. and on July 15, 8 a.m. to noon. All will travel home the afternoon of July15.

ACTION: Area 4 members to forward agenda items for the Chicago meeting to Delzer.

Public input
None

Subcommittee Reports

• Issue review--Schneider
  Subcommittee did not meet since last Area 4 meeting. Delzer was asked to send out a list of all open issues. Still looking for someone to take the lead for this subcommittee. We need to pick an issue this subcommittee can work.

• Forms and pubs--Meister
  Still collecting data on several issues. Hurr and I were at the Detroit Notices face-to-face meeting. IRS was very supportive and we were surprised at how involved TAP is in this area. They seemed impressed with TAP. Very productive meeting and we go a lot done. IRS realized that they could utilize us.

Miller presented an issue to elevate. Miller sent a copy to all committee members, issue #3670, Forms Draft Changes on May 20. IRS posts drafts for input. When IRS posts, there is no indication as to what was changed from the original form. You have to find a copy of the original form to compare. We recommend that the IRS highlight what was changed. According to the research Delzer prepared, this is not a new issue. IRS stated additional resources are needed to highlight changes. We feel the IRS needs to make it easier for folks to identify where changes occurred. We recommend they reconsider the idea and find a way to highlight changes on the form. Behnkendorf is on the Burden Reduction Committee, and are working on Form 8857, Innocent Spouse, and the form has been totally re-done. When you get beyond minor changes it would not be appropriate. This proposal is directed toward limited changes. Duquette said this should pertain to revisions of current forms. Schneider said a lead-in paragraph identifying where the changes are being made would be helpful. Duquette said IRS’s response is this is aimed at the software vendors. The vendors don't care about the substance of the form, (in other words the Why's of the change) but rather they care about the format they must include in their programs.

Consensus to elevate issue.

ACTION: Delzer will format the recommendation regarding Draft Forms Changes and send forward to Toy for Joint committee consideration.

• Customer issue-Amos
  Subcommittee met briefly and agreed that issues needed more research. Committee discussed three possible issues: time period to file an electronically filed return after it rejects on April 15th, IRS’s loss of Form 8453, and the inconsistencies of Fed/State agreements. The Federal government negotiates with each state as to how they want to get audit reports.

Outreach
Behnkendorf and Lawler attended the Dearborn Women’s Center. Many other government agencies have tables at these expos. If you are familiar with any of these expos, you should pursue attending. Delzer stated TAP does have money for these outreaches. She can contact these places and try to negotiate a reduced price of a booth or a table.

ACTION Item review
Delzer will follow up concerning the biography template issue to be considered by the Communication Committee. Action to be carried over to the next meeting. Will speak to Steve Berkey expressing the need for a template.

Office report--Delzer
Applications will be ranked next week and the Area 4 applicants will be interviewed the week of June 19. If you are interested in participating, please let McQuin know of your availability. All will be telephone interviews and the procedures for interviewing will be shared. Broniarczyk is available to help.

Town hall at Xavier University in Cincinnati, on June 6. Schneider, Hafer, Hurr and Melchior will all be attending. If you have people you would like to invite to the event, please send Delzer the contact information.

New Issues--Schneider
Issue Review Committee did not have time to review, but will contact members to set up a call. Sheer number of issues is overwhelming, but need to take the ones that seem more fruitful. If it is a specific taxpayer issue, we cannot work. We work systemic and general issues that affect many taxpayers. Would be nice to work every issue but not possible. Must be somewhat selective. The VITA response to the Commissioner has priority over our regular issues .

Delzer shared that Area 5 has the Free file issue and two issues fall into this area. Delzer will send issues 3863 and 3806 to Area 5.

Area 2 just forwarded the 1099 issue and so that can be closed. Issue 3916 can be sent to the TAC Committee.

Regarding issue 3901, this form can be filed. It is true that some software vendors do not offer all forms.

ACTION: Delzer will forward an updated issue list and will also note the disposition of each issue. Delzer will request the reports be run in numerical order or by date of contact. Preferably in numerical order.

Meeting adjourned.
Next meeting is June 27, 2006 at 11 CT.