Area 5 Committee Meeting Minutes

May 9, 2005

Designated Federal Official:

• Dianne Glass, Austin Local Taxpayer Advocate

Committee Members Present:

• Steve Landauer, Iowa
• Bob Meyers, Nebraska
• Thomas Seuntjens, Minnesota
• Robert Stokes, Texas
• Mary Suther, Texas
• Jeana Warren, Texas
• William White, Texas
• Nan Wilson, Chair, Kansas
• Warren Wong, Minnesota
• Lillian Woo, Texas

Committee Members Absent:

• Clifford McKenzie, Oklahoma
• Stanley Miller, Missouri
• Charles Wendt, Texas

TAP Staff:

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

Other Attendees:

• Steve Bankler
• Mike Miles, Fort Worth, Texas
• Jay Reese, Dallas, Texas

Welcome/Announcements/Review Agenda
Wilson welcomed the committee members and visitors and reviewed the agenda.

Roll Call
Quorum met.

Public Input
Jay Reese – spoke to a revenue agent two years ago. The agent did his taxes but had to use a special program to compute for AMT. He did his own taxes last year (and they seemed to be ok) so did them again this year. But this year he was told he made a mistake and owed approximately 45% more in taxes because of AMT. He has been fighting with the IRS ever since. The AMT form is much too complicated. He did the taxes the same way both years so cannot figure out how he made such a big mistake this year.

Mike Miles – echoes the comments regarding complexity. AMT is hitting more and more people and it seems unfair. He is seeing a lot of clients paying state taxes and property taxes, but they cannot benefit from paying the state taxes as they are not deductible. Miscellaneous deductions also send these taxpayers into AMT. He is going to file an amended 2003 tax return. He will reduce his deductions and but will actually see a refund as a result, due to the decrease in AMT. It’s just the complexity is so discouraging.

Woo said we have been working on the AMT issue for three years. Area 5 is ready to submit our recommendations to educate taxpayers on AMT.

Review/Approve Minutes
The April minutes were approved without changes.

Area 5 Chair Report
White attended the Joint Committee meeting on April 20, 2005 for Wilson. There were many action items, including the discussion of a new monthly committee report format. There was discussion about the decision to close approximately 100 Taxpayer Assistance Centers (TACs), as TAP was never contacted for their input before the decision was made. The Joint Committee sent a letter to Commissioner Everson regarding this issue and he responded. Several members, including TAP Chair Gwen Handelman, will meet with him May 20, 2005, to discuss the closing of TACs. They chose the members to attend this meeting with budget constraints in mind. That is why no one from Area 5 will be attending.

Seuntjens suggested that the action items from the Joint Committee minutes, as well as the monthly committee reports, go to all TAP panel members. He will bring this up at the JC face-to-face meeting in May.

Wilson said the new legislative form has been sent out. You should all have it by now. Wilson reported that Coston is still working on developing the TAP Measures. Remember to send in your speaker reports to Delzer, with a copy to Wilson, especially if you speak to a group.

Sub-Committee Report-out

• AMT Education – Woo
  The sub-committee has sent their recommendations to the committee for comment. She thanked the AMT sub-committee members for their work. Fortunate to have some input from prior panel members and members from other Areas: Clifford McKenzie, Warren Wong, Linda Bader, Leonard Steinberg, John Hollingsworth, Nan Wilson, and Lillian Woo. Please read the statement of issue and the proposed solution. We proposed that; A) the IRS prepare an educational brochure, and B) the IRS develop a public awareness campaign.
  
  Changes to the recommendation were discussed. Under constraints, need to add statement regarding IRS staff time to edit and prepare brochure/media releases and cost of printing and distribution. Also need to include operating division impacted. In “analysis” need to include items considered, such as input from the public, use of website and media coverage.
  
  The issue recommendation was approved by consensus, with the provision that the discussed changes are made. It will be elevated to the Joint Committee for their consideration during their June meeting.

• TAC Partnering – Meyers
  The subcommittee is in the process of drafting their recommendations. They emphasized that people who are impacted by the closing of the TACs, are the ones who need the service the most. They are also looking at the possibility of partnering with SSA, local, state, and other government agencies. They hope to have the report complete by the June Area 5 meeting.

• TAS Delegated Authority – White
  We are still waiting for comments from the NTA. White suggested putting this issue in the parking lot until a decision is made. The subcommittee should not put any more time in until a decision is made. They have started looking at
  E-file rejects. There was consensus to put the TAS Delegated Authority in the parking lot and work on E-filing rejects. White will set a conference call.
  
  ACTION: White to set up a conference call to discuss the E-file rejects issue.

• Fraud Form Availability – McKenzie
  No report this month.

New Issue
The discussion of new issues will be carried over to the June meeting.

Outreach
Wong spoke to a local newspaper. Also talked at an AARP meeting with about 12 people in attendance.

Woo talked to a Dallas AM news reporter and to the Central Texas CPAs. She also did an interview with a radio station in MN about AMT.

Stokes spoke to a group of directors of adult education and superintendents.

Office Report
McQuin reported that recruitment closed with about 400 final applications. They will be ranked the week of May 23 to prepare for telephone interviews. Will need TAP members to help in this endeavor. Hopefully we will be interviewing in June or July. Due to budget constraints, we will not be doing any face-to-face interviews. We may also be doing some additional targeted recruitment.

The tax forums are scheduled. Panel members in areas where the forums are being held, should consider working them. The Houston tax forum is July 11-13, 2005. Set up is on July 11 and the forum starts at 7:30am on July 12. Please send McQuin and Delzer an email if you are interested in working this forum.

Woo and Wendt volunteered to work the forum. They are both within an hour of Houston.

Closing/Assessment
Meyers – good meeting
Seuntjens – need to adhere to conference call etiquette
Stokes – good meeting
Suther – will be out of the country May 18 to July 1
Wong – good meeting
Woo – good meeting and appreciate the public input

Meeting Adjourned at 3:15 pm. Next meeting date, Monday, June 13, 2:00 p.m. CT.