Monday, April 28, 2008
Tuesday, April 29, 2008

Designated Federal Official

• Marian Adams - Wichita, KS - Designated Federal Official

Committee Members Present

• Bell, Kay - Austin, TX - Vice Chair
• Bland, Sandra - Bemidji, MN - Member
• Capehart, Craig - Dallas, TX - Member
• Colvin, A. Elizabeth - Austin, TX - Member
• Freeman, Christopher - Chaska, MN - Member
• Fretheim, Dan - Decorah, IA - Member
• Guthmann, Howard - St. Paul, MN - Member
• Lynch, Reagan - Midland, TX - Member
• Shah, Rajiv - Scottsdale, AZ - Member
• Rousseau, Richard - Harker Heights, TX - Member
• Shoemaker, Paul - Lincoln, NE - Member
• Stieger, Lee - Leavenworth, KS - Member
• Villarreal, Josefina - Corpus Christi - Member
• Woodard, Norma - Choctaw, OK  - Member
• Wright, Kenneth - Chesterfield, MO - Chair

Guests

• Sherry Saucerman - Senior Stakeholder Liaison

TAP Staff

• DeTimmerman, Trish - Des Moines, IA - Acting TAP Manager
• Delzer, Mary Ann - Milwaukee, WI - Program Analyst
• Robb, Patti - Milwaukee, WI - Secretary

Monday, April 28, 2008

Ken welcomed everyone and then reviewed the agenda.  Everyone took a few moments to introduce themselves. 

Joint Committee (JC) Report-out
The JC instructed each committee to look at the issues they are currently working, and try to set a reasonable completion date.  The date should be added to the contact database.

They reviewed two issues submitted for elevation from Area 4.  One issue was sent back for some minor changes; the other issue was elevated.

The JC decided they would like to review the chair election process at the face-to-face meeting in St. Louis in May. 

The last Town Hall meeting is scheduled for Tuesday, May 6, 2008, at the Trutter Center in Springfield, IL.

Recruitment is going great.  We have viable applicants in each state where they were needed. 

Manager and Analyst Reports and Comments
Trish DeTimmerman said both the junior analyst position and the secretary position were filled in the Milwaukee office and there are several applicants for the TAP manager position.  Hopefully a new manager will be onboard very soon.  Program Analyst Barbara Foley left for a new position with Wage & Investment (W&I).  Each of the offices are going to be taking a share of the JC analyst duties.  Louis Morizio, TAP Manager in Brooklyn, will be taking over working with the TAP database. 

DeTimmerman announced that panel members may be asked to help with the new member interviews which are planned for some time in June.  The interviews generally last about an hour each.  Please notify the Milwaukee office if you are available June 9 – 28. 

Discussion of Area 5 Organization
Wright said we have a chair and a vice chair like all the area committees, but it seems that each of the different areas seem to take a different approaches as to the way they work.  Some committees have found that an issue screening committee does not work.  The panel member’s job is to do outreach and collect or identify potential issues.  Should we have a standing issue screening subcommittee or do we want the whole committee to look at the incoming issues?  There are active issues (currently being worked) and there are issues in the parking lot. 

Area 5 currently has a screening committee and Kay Bell offered to stay on as the head of the subcommittee.  The committee looks at whether the issue is legislative, is being worked by another committee, or if it is even a viable issue.  The viable issues are presented to the whole committee and the committee then determines the top three issues to be worked. 

How beneficial would it be to have some preliminary research before determining whether the issue is viable?  It would be helpful to identify the actual issue.  Delzer said the screening committee could drop the issues not in scope of TAP, and she can do some background work on the ones remaining. 

Bell said they look at the issues and present them to the whole committee to see if they spark some interest.  Chris Freeman thinks all the issues should be looked at and the subcommittee should cut issues not within TAPs’ purview.  There should also be some membership rotation on this committee.  After issues are identified, the whole committee should look at them and determine which ones they would like to work on.   Remember, these issues progress slowly and it can easily take a couple months to complete them. 

The screening subcommittee also tries to share some of the issues with the corresponding issue committees.  They will decide if it falls within the scope of their committee.  Delzer reminded everyone that any forms and publications issues must go through the Ad Hoc Forms and Pubs Issue Committee.  Any issue placed in the parking lot is free game and any other committee can choose to work them. 

We get active issues and the whole committee will vote on them.  They will be sent out to review and will be discussed at the next call.  Then the committee will determine which issues they want to work on.  If no one steps ups to work on an issue, the chair will assign someone to be on that subcommittee.  Freeman said someone needs to do some background research to determine if another committee is already working that issue.  If it is being worked by another committee, the issue should be sent to them.  Delzer said she does that research and will let everyone know during the call.  She thought it would be helpful if she were to sit on the screening subcommittee conference calls. 
Decision:  Delzer will be on the screening subcommittee calls to help weed out non-viable issues.  

Wright offered to be a sounding board if someone has a tax question.  And remember, every TAP member is also on an issue committee and you have a lot of resources available to you. 

There will be a rotating screening committee – Bell will be the lead; Delzer will post all  issues on TAPSpace; the screening subcommittee will look at active issues and rank them – asking for everyone’s comments usually does not work.  Volunteers will be asked to head up each subcommittee.  If no one volunteers, Wright will draft members to work the issues.
  
Wright asked the members to think about running for Area 5 committee chair, but be aware, it will require more time and work. 

The TAP Experience
Wright asked members what their expectations were versus what really happened.  TAP has different surveys but nothing compares to a face-to-face meeting.

Rick Rousseau – third year perspective:  He thought the introductions at each meeting ae helpful and a very good thing.  He has been on the Volunteer Income Tax Assistance (VITA) for over two years.  Some of the same issues come up every year – i.e. tax forms and publications in Spanish – are they really needed?  You need to think about all the different backgrounds of the members and they are great things to draw on.  You spend the first year trying to figure out what you got into.  You really get in the groove in your second year.  And the third year is payback time – you really get involved.  You should have a pretty good handle on how it all works in your second year.  Subcommittees are where the work really gets done.  You really don’t have time to work issues on the monthly conference call – hence the subcommittees.  You need to have someone who is really interested in the issue to head the subcommittee.  They will address it with more passion and things will get done.  Listen closely and things will get done in TAP.  There is always someone looking for input on their special project.  It is rewarding to get involved in these different projects.  Our backgrounds are varied and that sometimes determines the type of outreach one does.  Outreach is how we get the word out about TAP and that is a source of new issues.  Working issues through the area committees is a pretty slow process, so there is an advantage of kicking the issues through the proper issue committee.  The disadvantage is you will not get a formal response back from the IRS if the issue committee does decide to work your issue.  If the issue committee decides not to work your issues, they should give it back to the area to work it.  

In your first year - listen to things that do interest you.  As you listen on the calls, you will pick up on issues that interest you.  The VITA Committee has three subcommittees and that is where the real work is done.  They all report on where they are during the monthly committee calls.

If you don’t like the issue committee you are on, you can usually change it.  Some members have been on the same issue committee for their whole three years.  However, the focus of the issue committee can change each year too. 

There are also other opportunities that come up with a very short response time.  You have to be on the watch for these as not everyone is able to respond. 

Josefina Villarreal – first year perspective: Meeting panel members from across the country gives you a wide scope of experience.  It is a very diverse group of people and it is very interesting to compare notes and information.  The biggest complaint about TAP is going to my first face-to-face issue committee meeting; I felt guilty because I didn’t know what I was supposed to be doing or what my role was.  It would be nice if they would explain our role a little more in the beginning.  She said she found that TAP is not very well known with about half of the attorneys and other people she works with.  She is going to make it her mission to get the word out about TAP. 

Dan Fretheim – first year perspective:  A lot of information is provided to us at the annual meeting.  It was hard to imagine how it was all going to work, but now that I’ve been involved for a half a year, it makes sense.  He said he is still a little hazy on the life of an issue.  There is so much information provided at the annual meeting, you forget half of it because you don’t use it.  Part of this is because the area and issue committees work differently. 

Chris Freeman – has always had an issue about jumping right in.  He said TAP should think about waiting a couple months to have the annual meeting after new people are brought on.  And the information should be doled out slowly.  Each new member should be on a couple conference calls before attending a meeting. 

Kay Bell - asked if each committee could have a carry-over issue to have as an example to the new members.  Then when they come on the current members could explain the process. 

Wright thought a member of the issue committee could do this with new members to show the life of their issue.  The chairs and the third year members could help with this too.  This would also help alleviate some of the burden on the staff. 

Rousseau thought the chair rotating off could attend the annual meeting and that helps transition and train the new members.  The retiring chair could also be put to work doing other things. 

Paul Shoemaker thought the information given out at the annual meeting was great, but it would be better if the members could get some experience before actually doing the job. 

Reagan Lynch and Norma Woodard were orientated in Milwaukee since they could not attend the annual meeting.  They both felt they were better prepared for the area committee but not quite as prepared for the issue committee. 

The committees work very hard to bring their issues to fruition before the end of the year but it might work better if there was one issue identified as a carry-over issue. 

Elizabeth Colvin said whoever is chairing the committee can make a huge difference. 

Troublesome Tax Issues?
Taxpayer Advocate Service
Marian Adams, DFO, and Margie Harrell, TAS office Austin Campus.  TAS is an independent part of the IRS.  Many taxpayers still do not know about TAS and that in itself is amazing. 

What does TAS do?  TAS criteria: suffering or about to suffer economic harm, or there is an immediate threat of detrimental actions; a significant cost if relief is not granted; irreparable harm or injury.  After contacting the IRS, if taxpayer has not received relief within 30 days, they meet TAS criteria.  Two reasons not often seen are the manner in which the IRS is administering the law, or the National Taxpayer Advocate (NTA) determines that public policy warrants it. 

We do not discuss inquiries on the constitutionality of the tax law.  Cases are generally worked where are received.  That can be a local, area, or a campus office. 

There are two sides to TAS; the case resolution side and the systemic side.

Customers come to TAS through correspondence, the toll free line, email, the local line, or referrals from other offices. 

Right now, most cases are due to the stimulus refunds.  If a taxpayer has a balance due to the IRS only, if they can prove they will be suffering a hardship, we can help that person. 

Is there a footprint for TAS?  Adams shared that it was determined there would be at least one Local Taxpayer Advocate in each state and they are in the largest cities. Some states have more than one LTA.  The hardest part is letting taxpayers and general public know we are out there.  Most TAS cases are worked via the telephone, as taxpayers seldom come into the office for a face-to-face.  Primarily any case can be worked at any office.  We did try a mobile tax site where we went to the taxpayer, but we did not get enough coming to us so do not do that anymore. 

Another role of TAS is to identify systemic issues.  The top 20 issues are identified in the NTA report to Congress every year.  NTA can also go to congress with the most reported problems.  Identifying and solving systemic issues are a big part of what TAS does. 

Issues Discussion

What Makes a Quality Issue/ Developing and Writing the Issue
We need to look at the merit of the issue itself and whether that issue is well written.  Wright is on the Quality Review Committee and they made up a checklist for each committee to follow when elevating an issue.  All of the elevated issues are posted to TAPSpace for comments.  The quality review team looks for format compliance, written in accordance with guidelines, and is generally well written.  If it is lacking in any of these areas, it is sent back to the area committee so corrections/improvements can be made.  They make the changes as directed (or not) and then it is forwarded to the Joint Committee.  The joint committee checklist must accompany any elevated recommendation.  As far as resources, there is a lot of talent on this committee so it would be great if you would make yourself available to help.
 
Review of Current Area 5 Active and Parking Lot Issues
# 4457 – EITC Audits - this issue was offered to the EITC committee but they were not interested in this issue.  New checklist will be coming out next filing season.  Parking lot issue until the annual meeting and new Form 886 is approved. 

# 4480 – Name and SSN mismatch - Colvin thought this issue might be the name control match.  Delzer thinks IRS should tell people what their name control is when they issue an ITIN, like they do with an EIN. 
ACTION: Wright will write up to include all identification numbers and send to Forms & Pubs.  He will send a cc to Lee Stieger in Notices too. 

# 4241 – Improve Tax Payment Options – Viability of ACH payment options – When you go in to change or enter a checking account, it should make you verify which account the payment will come out of.  Delzer will make a create a new issue for the database regarding direct ACH payment.. 

# 4640 – Forms 8109–Deposit Coupon – Dan Fretheim will work this issue, but it will be put into the parking lot until the annual meeting (which will give Dan about 7 months). 
ACTION: Delzer to research the number of “rejected” forms 8109.

# 4652 – Dependency and pre-1985 rule
ACTION: Wright will write something up on the dependency and pre-1985 rule to forms and Pubs to drop.

# 4268 – Identity theft/processing verification – drop. 

# 4651 – LLC Disregarded entity Information
ACTION: Wright will write up LLC Disregarded Entity Information and send a copy to Fretheim and Woodard. 

# 3712 – Power of Attorney/Third Party Designee – Rajiv Shah offered to take this issue to the Burden Reduction committee.  They are working on an aging issue and he will marry it with that.  Drop from Area 5 parking lot. 

# 4575 – Website accessibility for blind/Talking Tax Forma – Lynch will head the subcommittee; Chris Freeman will work with him. 
ACTION: Lynch to report findings on talking tax forms July meeting.

Contact History Report for Area 5

# 4683 – Inability to find street addresses for IRS service centers for delivery by private delivery services.
ACTION: Wright will write up addresses for IRS service centers for delivery by private delivery services and give to Forms and Pubs.

# 4698 – VITA – Rousseau will give to VITA committee

# 4696 – E-Services expand to Business – Villarreal will go to the source to get more information – parking lot.
ACTION: Delzer will send to Villarreal information on what is available through e-services.

# 4697 – Collection, National Standards – Dan and Norma will do some research on this issue.  Parking lot until report is done.

# 4698 – E-filing Form 2553
ACTION: Villarreal will write up E-filing Form 2553 and forward to Delzer to send to Forms and Pubs.

# 4699 – Installment agreement fees – Colvin found that it has been automated.  Drop

# 4712 – Taxpayer Rights – Drop
 
Wright’s Issues. . .

• Limited liability companies holding residential rental properties – Notice 2004-33 – Burden Reduction – Wright will work this issue.
• Estimated taxes – Form 4868 should not require an amount – Delzer will do some research then Wright will write up for Forms and Pubs.
• Processing issues – First time Letter 525, Examination reports - This issue has been raised by the NTA.  This is a systemic issue – Wright will draft a response for the next meeting. 
  ACTION: Wright and Delzer will do research and writing on the above issues. 

The following is when you went “around the horn” for new issues:

Colvin:

• 1098 T – colleges use for reporting tuition paid.  These forms are often not accurate and taxpayers need accurate reporting.  Schools should know how much tuition was paid.  This is a real problem when assisting them is filing a return.
• 1099-Misc – box 14 for gross proceeds paid to attorneys.  Need some drastic rewriting.  Cannot understand current instructions on how to handle this on a tax return
• Medical testing payments – sometimes it is in box 3, sometimes box 7; they should not have to pay self-employment tax.  Should go on line 21 as the payment is a one time thing.
• Misclassified employees – no way to file Form SS8 without jeopardizing job, as you can not be anonymous. 
• Accepting the paper Form 1040 in Spanish – it is problematic asking a taxpayer to sign the 1040 if they cannot read it.  The Ad Hoc (Forms and Pubs) committee has an MLI subcommittee.  Lynch will bring this issue up on the next call.  The IRS used to accept them but this has changed their policy.

Shoemaker:  none

Stieger:  none

Guthmann: 

• Investment clubs – problems with meeting expenses.  Investment fees limited to the 2% limitation.
• Cost basis from brokers, mutual finds, etc.  They have the information but won’t send it out.  It will cost you $30-$75 to get the information if you request it.

Capehart: 

• Currently many people are buying international funds (EFTs).  Taxpayer must file Form 1116, to get credit for foreign tax paid of more than $300.  The 1099’s issued don’t give you enough information about how much or to whom the foreign tax was paid.  Brokers do not know either.  The vocabulary used also is not consistent.  The $300.00 amount needs to be raised or the brokerage companies need to be required to give all the information needed.  Is this legislative or is it within IRS rule?  Shah feels this is going to be an emerging issue.

Rousseau: 

• VITA will be sending out a survey to all panel members – please send in any thoughts.  We did receive about 30 responses to the software survey. 
• VITA will start updating their training materials soon,  if you have suggestions, please forward them.

Bland:  none

Fretheim:  none

Woodard: 

• Two ministers making same amount, one pays social security and the other opted out.  The one who opted out is not eligible for EITC. 

• 1023 application process – Receive letters after filing the form asking for information beyond what is in the instructions.  They always ask for more information but now they are asking for a lot of information not identified on the application.

Lynch: 

• Lynch is working on the changes that should be made to the form 1023.
• AGI limit for VITA should be increased – (VITA committee is interested in this)

Villarreal: 

• See e-services expand to provide W-2s and 1099s
• ACTION: Delzer will send information on e-services.
• Certain unrelated business for non-profits that is or should be taxable--Legislative
• Practitioner Priority Line – the employee gives you their name and badge number when you first call and if you ask for it later in the call, they frequently refuse to give it again. 

Bell:  none

Freeman: 

• Taxpayer made an error on his 2006 taxes. He wanted to apply the 2006 refund to his current amount due.  When he called the IRS, he was told they were unable to look the tax return up.  Why?

Shah: 

• Once you make a mistake on your return, it seems to be a Herculean task to work with the IRS to correct it.  It is very frustrating and takes many contacts – verbal and in writing. 

Public Input
None

Tuesday, April 29, 2008

Welcome / Announcements / Review Agenda
Outreach

Making reporting easier
Wright will send out the word template he devised to capture outreach.  Everyone should be doing outreach every month.

The role of the LTA and working with your local LTA—Marian Adams
Each LTA has the responsibility to work with their local panel member.  We work closely with the small business community and congressional offices.  Also are charged with making grass roots contacts.    Work with the practitioner organizations and so reach out to people in the remote parts of the states.  Members should be working closely with their LTAs to partner with them in their outreach efforts.  Stieger suggested asking them for some of their business cards for when you run into someone who has a personal tax problem which TAP cannot address.  LTAs hold a liaison meeting with their local congressional offices each year.  The LTA responds to every congressional contact made on behalf of a constituent.  There is one governmental liaison (GL) in each state.  Your LTA can put you in contact with your GL.  The GL also works closely with the state departments of revenue. 

Working with IRS Stakeholder Liaison—Sherry Saucerman
Wright welcomed Sherry Saucerman, the local Stakeholder Liaison (SL) in San Antonio.    SL is part of Small Business/Self-Employed.  Job is to partner with practitioners and this enables SL to leverage our efforts.  Also do small business forums as well.  Practitioners are used to dealing with the IRS and welcome the help SL.  We have worked hard to build good relationships with practitioners. 

We have practitioner meetings in Dallas and Houston, and are working on two state-wide meetings.  There are also regional meetings – partnering with NATP – doing an 8 hour meeting;  El Paso in May, Lubbock in August, Corpus Christi in November.  If you contact her, she will give you all the dates and locations of the up coming meetings.  SL did help TAP with their recruitment efforts. 

Working with the small business/self employed, we share our information with small business development centers, bar associations, chambers of commerce, construction organizations, architects, restaurants, etc.  IRS also uses SL to get information out to taxpayers who speak English as a Second Language (ESL).  Also have many e-subscription services.  Tax Talk Today is a presentation that has high level IRS executives talking about IRS policy and procedure.  Delzer encouraged everyone to subscribe to these services, as there is a tremendous amount of information sent out.

Also do Phone Forums on various topics.  IRS provides a toll free number and it is set up in lecture mode.  You can register thru a AT&T website.  You will get the phone number, access number and pin number so you can call in.   
Handouts: 

• Upcoming Phone Forums
• Small business workshop DVD
• Small business resource guide (can order from website)
• Small business calendar (can order from website)
• Information on EFTPS
• Flyer explaining independent contractors vs. employees
• Issue Management Resolution System (IMRS)
• Hot issues

Meeting evaluation
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