Thursday, May 1, 2008
Friday, May 2, 2008
Saturday, May 3, 2008

Thursday, May 1, 2008

Designated Federal Official
Teresa Thompson

Attendance
George Bates
Milissa Bensen, Vice Chair
Eileen Birge
Marilynn Clapp
Dean Conder
Laura Criel
Steven Maisch
Neil Mitchell
Joe Shields, Chair
Ed Uhrig
Harris Widmer

Staff
Judi L. Nicholas, TAP Program Manager
Dave Coffman, TAP Program Analyst
Marla Ofilas, TAP Secretary

Opening/Welcome
Judi opened the meeting. Joe welcomed the members to Salt Lake City, UT and thanked everyone for attending. The agenda was reviewed followed by member introductions. A quorum was met.

Approval of Minutes
The full committee reviewed the completed minutes from April 2008.
DECISION: The full committee approved the minutes from April 2008. 

Outreach Reviewed
Milissa provided a review of the outreach efforts from March. She noted that the March results reflect an improvement over outreach efforts from prior months.   

Milissa informed the committee that her recent outreach efforts included a Latino business expo.  She partnered with the Seattle Taxpayer Advocate Service for the event.  While the expo had many local business owners in attendance, no recommendations for improving IRS services were received.    

Harris shared his recent experience with a television interview he had.  The interview reached 65,000 to 75,000 households.
 
Judi took a moment to explain the challenges TAP faces when recruiting in less populated states. A small amount of media attention really helps to get the word out that TAP is recruiting new members.  Judi informed the committee that one of the duties of the new analyst will be to assist in coordinating outreach events. The new analyst will work with the Local Taxpayer Advocate (LTA) to find outreach activities in each state.

Harris asked if panel members could to receive a list of the outlets that media specialists use to distribute TAP press releases.  Judi replied, while the specialist releases the story, the media determines if the story should go to print.   

Recruitment & Interview Process
Judi informed the committee that 618 applications were received nationwide for TAP positions.  Hawaii and Utah had an increase in applications because of the recent media attention TAP received in those states.  The TAP staff will rank applications the week of May 12 and interviews will be scheduled for the last three weeks in June. The interview panel will include an LTA, TAP Manager, and a panel member.  Judi will send out an email soliciting interested panel members to assist with the interviews.

Members suggested items that applicants should know, either prior to or during the interview.  Steve suggested that applicants be informed that outreach is encouraged for all TAP members.  Potential members should know what outreach is and why it’s important.  Examples of outreach should be provided.   

Eileen would like to see a mentor program for new members.  Judi stated that TAP had a mentor program in the past, but the responsibility of the program rested on the shoulders of the experienced panel members.  Due to a lack of follow-through, the program slowly faded away.  Judi feels that the TAP staff should take the initial responsibility of facilitating the mentoring program.  Dean suggested the mentoring process begin prior to the interview. An applicant would definitely benefit by speaking to an experienced panel member prior to his/her interview.  This will help the applicant know what to expect from the position.  Judi felt that was a great idea and agreed to pass the recommendation on to the staff.
ACTION:   Judi will consult the TAP staff for their input on Dean and Eileen’s recommendations. 

Joint Committee Report
Milissa reported that Area 6 elevated one issue the Joint Committee.

Area 4 is working on an issue where taxpayers are signing Form 4089, Notice of Deficiency-Waiver, without fully understanding that they are agreeing to the assessment as presented.  The waiver also signifies the taxpayer’s agreement not to pursue Appeals or petition the Tax Court. Area 4 does not know the number of people who were impacted by this issue but TAP Analyst, Mary Ann Delzer, is working on getting the numbers.

A town hall meeting was held in Durham, NC. There were approximately ten members of the public in attendance.  Most attendees were practitioners or representatives of a Low Income Tax Clinic (LITC) or a volunteer organization who had a lot to say about refund anticipation loans. The next town hall meeting is scheduled for Tuesday, May 6, at the Trotter Center in Springfield, IL.

Joe volunteered to be the lead of a new subcommittee which will develop the new election process for the TAP chair. The subcommittee will also review the process of electing the chairs for area and issue committees.  Judi added that a recommendation was made to hold the chair training directly after the conclusion of the annual business meeting.  

Issue Committee Report
In addition to area committees, TAP is also comprised of issue committees which receive direction from IRS program owners. Panel members participate on both an issue committee as well as an area committee.  Each panel member provided a brief update on the activities of his/her issue committee. 

Subcommittee Update

The Taxpayer Burden Subcommittee reviewed issue #4495 (Penalty & Interest -- Accruing While IRS Delays a Decision). After initial research, the subcommittee found that the establishment of penalty and interest, along with any stop in accruals, is based on legislation. Any exceptions to the normal accrual process of penalty and interest would probably require a legislative change.  It was recommended to the full committee that the issue be dropped.
DECISION: The full committee agreed to drop issue #4495 because it would require a legislative change. 
 
The full committee reviewed the draft recommendation for issue #4227 (Requests to Speak with a Supervisor).  This recommendation was created by the IRS Services Subcommittee.  By consensus, the full committee agreed to elevate the referral to the Joint Committee.
DECISION: The full committee agreed to elevate issue #4227 to the Joint Committee.

The Miscellaneous Subcommittee continues to work on their active issue, #4358 (Fraud – Preparers Reporting Other Preparers or Taxpayers).

Closing
Joe thanked everyone for their hard work.  Teresa closed the meeting. 

Friday, May 2, 2008

Designated Federal Official
Teresa Thompson

Attendance
George Bates
Milissa Bensen, Vice Chair
Eileen Birge
Marilynn Clapp
Dean Conder
Laura Criel
Steven Maisch
Neil Mitchell
Joe Shields, Chair
Ed Uhrig
Harris Widmer

Staff
Judi Nicholas, TAP Program Manager
Dave Coffman, TAP Program Analyst
Marla Ofilas, TAP Secretary

Subcommittee Break Out
During day two, the members separated into their subcommittees and worked their assigned issues.

Saturday, May 3, 2008

Designated Federal Official
Teresa Thompson

Attendance
George Bates
Milissa Bensen, Vice Chair
Eileen Birge
Marilynn Clapp
Dean Conder
Laura Criel
Steven Maisch
Neil Mitchell
Joe Shields, Chair
Ed Uhrig
Harris Widmer

Staff
Judi Nicholas, TAP Program Manager
Dave Coffman, TAP Program Analyst
Marla Ofilas, TAP Secretary

Opening
Teresa opened the meeting.

Subcommittee Reports

IRS Services Subcommittee
The subcommittee requested to transfer issue #4157 (Return Processing -- IRS Losing Vital Tax Documents) to the Taxpayer Burden Subcommittee.

• Issue #4202 (EFTPS -- Time Zone Problems)

The subcommittee drafted a recommendation and shared it with the full committee. The subcommittee feels there should be fairness across the board regarding payments made through the Electronic Federal Tax Payment System (EFTPS).  Marilynn suggested a change in policy would be easier to implement rather then elevating a proposal that would require computer reprogramming.
DECISION: The subcommittee agreed to make the recommended changes. When the changes are completed, the subcommittee will forward the draft to the Area 6 quality review team.

The subcommittee has agreed to place the flowing issues in “Parking Lot” status:
 #4197 (Notices -- Erroneous Balance Due Notices), #4385 (Practitioner Hotline -- Services Offered), #4389 (CP 2000  -- Unable to Reach an Employee), #4513 (Correspondence – POA), #4538 (Exam/Audits  -- Not Forwarding Documents for Processing), and #4708 (Free File -- Fees for Service).

The subcommittee recommended that Area 6 drop the following similar issues:  Issue #3695 (Telephones--Unable to Reach Actual Person), #3912 (IRS Menu Options -- Speaking to an Actual Person), #3968 (Toll-Free Number -- Option to be Connected to an Employee), #3966 (Toll-Free Number -- Accuracy/Timeliness of Advice), and #3989 (IRS Toll-Free Numbers -- Menu Options). Area 2 received a response from IRS on similar issues that Area 2 closed as “Partially Accepted”. IRS already measures call accuracy, which has improved over the last few years. Contact with an actual IRS employee has previously been addressed by TAP. Test calls have been completed with positive results.
DECISION: The full committee agreed with the subcommittee to drop said issues.

• Issue #4361 (Return Processing - IRS Doesn't Recognize Unclaimed Expenses):

The subcommittee recommends that this issue be dropped.  The problem associated with this issue is beyond the knowledge of the IRS.  The taxpayer has the opportunity to file a Form 1040X to identify any additional expenses. 
DECISION: The full committee agreed to drop issue #4361 (Return Processing - IRS Doesn't Recognize Unclaimed Expenses).

• Issue #4362 (Correspondence - Overused for Audits/Collection Interviews):

The subcommittee recommends this issue be dropped.  The current process of correspondence audits, which saves time and cost for both the taxpayer and IRS, seems to be working.
DECISION: The full committee agreed to drop issue #4362 (Correspondence - Overused for Audits/Collection Interviews).
 

• Issue #4392 (Communication -- Face-to-Face Communication with IRS):

The subcommittee recommended dropping this issue because no specific problem is mentioned. The taxpayer still has options to speak to an IRS employee.
DECISION: The full committee agreed to drop issue #4392 (Communication -- Face-to-Face Communication with IRS).

• Issue #4532 (Audits -- Timeliness to Complete):

The subcommittee recommended dropping this issue because the problem stems from an isolated incident. It really should be referred to the Taxpayer Advocate Service.
DECISION: The full committee agreed to drop issue #4532 (Audits -- Timeliness to Complete)

• Issue #4548 (EITC -- Paying Evenly Throughout the Year):

The subcommittee recommended dropping this issue because advanced earned income credit is already an option for taxpayers. 
DECISION: The full committee agreed to drop issue #4548 (EITC -- Paying Evenly Throughout the Year)

• Issue #4600 (Duplicate SSN):

The subcommittee recommended dropping this issue because the duplicate Social Security Number check is a safeguard to prevent fraud and input errors. The taxpayer may be slightly inconvenienced, but the taxpayer is not being penalized.
DECISION: The full committee agreed to drop issue #4600 (Duplicate SSN).

• Issue #4648 (Communication  -- Transmitting Data and IRS Phone Contacts):

The subcommittee saw this problem as an isolated incident and recommended dropping this issue.  A phone transmission problem is not an IRS problem.
DECISION: The full committee agreed to drop issue #4648 (Communication  -- Transmitting Data and IRS Phone Contacts).

Taxpayer Burden Subcommittee
The subcommittee reviewed IRS’s response to recommendation #607-3233 (Rules for Self-Employed Taxpayers). The subcommittee drafted a rebuttal and hopes to discuss their position via teleconference with the person that provided the response. 

• Issue #4406 (Audits – Scheduling the Appointment):

Marilynn reported that there is no minimum amount of time for the preparer/representative to prepare for an audit. The subcommittee feels there should be something in the manual stating, “Do not schedule an appointment within 14 days.” The subcommittee agreed to make this their next active issue.

• Issue #4102 (FICA Taxes -- IRS Treatment of Board Members), #4198 (FUTA Taxes -- Fund Distributions), #4283 (Estimated Tax Payments -- Additional Burden for Partnerships), #4285 (Payments -- Credit Card Payment Fees), #4445 (401(k) -- Debt Cancellation), #4514 (Penalties -- Imposed on Practitioners), #4529 (Reporting Format for Brokerage Houses), #4637 (Payroll Penalties, Too High), #3873 (Stock Transactions -- Reporting to IRS), #3976 (Itemizing Mutual Funds/Stock Gains -- Using the Summary), and #3977 (Brokerage Statements – Standardization):

The subcommittee recommended dropping these issues because they require a change in legislation. 

DECISION: The full committee agreed to drop said issues.

• Issue #4101 (Qualified Plans -- Determination Letter), #4222 (Gap Years -- Requiring Taxpayers to File), #4281 (Estimated Tax Payments -- Limited Liability Corporations), #4307(Installment Agreements -- Appeal Rights), #4354 (State Sales Tax Deduction -- Making State Refund Taxable), #4355 (Injured Spouse Claims -- Reasonable Processing Timeframe), #4373 (Excess Collections -- Applied to a Subsequent Assessment), #4388 (Audits -- Submitting Documentation), #4397 (ITIN Applications -- Reasonable Timeframe to Respond), #4530 (Form 1099-DIV -- True Dividend Amount), #3971 (Fraud Program -- Inadequate Exposure), #4125 (IRS Notices -- Regular Notification of Balance(s) Due), and #4232 (IRS Notices -- Clarity of Penalties & Interest):

The subcommittee will place or keep these issues in the parking lot. 

Miscellaneous Subcommittee

• #4358 (Fraud – Preparers Reporting Other Preparers or Taxpayers):

Neil stated that the subcommittee developed recommendations to add an electronic Form 3949-A, Information Referral, to tax return preparation software and expand VITA training to include the circumstances under which the form would be used. Two recommendations were developed.  One recommendation includes a proposed solution for the Wage & Investment operating division and the other is for the Criminal Investigation operating division.
ACTION: The full committee will review the final recommendation during their June teleconference.

• Issue #4169 (Return Processing – Transferring for Adjustments):

The subcommittee recommended dropping this issue.  The problem appears to be isolated.    
DECISION: The full committee agreed to drop issue #4169 (Return Processing – Transferring for Adjustments).

• Issue #4269 (Perception of Newly Graduated Tax Accountants)

The subcommittee felt that this is not a workable TAP issue. 
DECISION: The full committee agreed to drop issue #4269 (Perception of Newly Graduated Tax Accountants).

• Issue #4177 (Interest – IRS Employees Abating Interest):

The subcommittee recommended dropping this issue because the problem appears to be an isolated incident.
DECISION: The full committee agreed to drop issue #4177 (Interest – IRS Employees Abating Interest).

• Issue# 4282 (Deductions for Coursebooks), #4360 (Withholdings -- IRS Paying Interest on Withholdings), #4528 (Tax Credit -- Energy Conversion from Fossil Fuels), #4659 (Capital Gains), and #4716 (Base Amount of Benefits -- Not Indexed for Inflation):

The subcommittee recommended dropping these issues since it would require a change in legislation. 
DECISION: The full committee agreed to drop said issues.

Neil concluded that issue #4383 (TAS -- Losing Taxpayer Correspondence) has been transferred to the Taxpayer Burden Subcommittee. In addition, the subcommittee will combine issue #4395 (Form 2848 – Interpretation) with issue #4356 (Powers of Attorney -- Ignored by IRS) and #4413 (IRS Systems) with #4396 (ITIN Notices – Timing).

Public Input
Members of the public were not present at this meeting. 

TAP Quality Review Process
Judi provided an overview of the Joint Committee quality review process. The quality review team was formed to ensure all recommendations include proper grammar, technical clarity and accuracy, and general readability.  Judi emphasized the importance of elevating well-researched recommendations to the IRS. 

Open Topic
Eileen expressed her disappointment with the lack of communication in her involvement with the EITC Awareness Day.
ACTION: Judi agreed to have a conversation with Bernie regarding the uneven coordination of TAP members participating in EITC Awareness Day.

Joe suggested that Area 6 members hold their face-to-face meeting earlier in the year to get a jump on working issues. Joe also suggested that the committee chair should be selected prior to the annual meeting.

Eileen would like to see that issues are worked during the annual meeting. Eileen also volunteered to be a mentor to a new member and to applicants that have scheduled interviews.
The full committee discussed possible cities for Area 6 face-to-face meeting in 2009.
ACTION: The staff will complete a cost estimate for Seattle, Boise, and Portland

Recap Action Items
Dave reviewed all action items. Judi noted that the staff will be unavailable for the June 3 teleconference. Judi asked that the teleconference be rescheduled.
ACTION: Dave will email the members some potential dates for the next Area 6 teleconference.

Closing
Joe thanked everyone for their participation. Judi closed the meeting.