Issue Committee (W & I EITC) Meeting Minutes

February 17, 2005
Teleconference

Panel Members In Attendance

• Jim Banks, Bozeman, MT
• Robert Broniarczyk, Romeoville, IL
• Philip Cimino, Staten Island, NY
• Gwen Handelman, Fort Lauderdale, FL
• Leslie Malcolmson, Detroit, MI
• Jack Morrell, Mandan, ND
• Joe Reder, Richland, WA
• Al Vivona, Sarasota, FL
• Nan Wilson, Overland Park, KS
• Beadsie Woo, Durham, NC

Members Absent

• Elizabeth Brodine Ghoniem, Winchester, MA
• Morgan Edwards, Charolette, NC
• Cheyanna Jaffke Placentia, CA
• Thomas Karwin, Santa Cruz, CA
• Robert Maziarz, Hainesport, NJ
• Charles Wendt, Iola, TX

Quorum

Quorum met

TAP and IRS Staff In Attendance

• Alisa Blum, Project Manager, EITC Stakeholder Engagement, Washington, DC
• Audrey Y. Jenkins, TAP Program Analyst, Brooklyn, NY
• Sandra Ramirez, DFO/Program Manager, Brooklyn, NY
• David Swan, EITC Office Detailee, Atlanta GA
• David Williams, Director EITC Office, Washington, DC

Public Participants

• Kim Glassman, Women’s Law Center, Washington, DC
• Amy Matsui, Women’s Law Center, Washington, DC
• Susan Morganstern, Legal Aid Society, Cleveland, OH

Opening of the Meeting
Malcolmson opened the meeting at 2:03 pm EST, welcomed all members, staff and guests.

Approval of Meeting Minutes
January 20, 2005 meeting minutes were approved as amended.

Program Owner Presentation
Hartford County Certification Test
David Williams, Director EITC Program, informed the Committee that the TY 2005 Earned Income Tax Credit Certification Test in Hartford is just beginning. Many of the taxpayers who are in the test have not yet filed their tax returns or have just filed their tax returns. Results will be forthcoming. At this point there are no dramatic differences in Hartford County versus taxpayers who are in other parts of the country in terms of phone calls, letters, or filing patterns. Approximately the same number of taxpayers has tried to certify as the prior year by telephone or regular mail. There are many months to go before there will be any pertinent results. If certification were to become a feature of the EITC, the return on investment would need to include costs, dollars protected, dollars that should have been given but weren’t (which isn’t typically part of most ROI analyses).

There will be more definitive conclusions on the TY 2003 in two phases: There will be an interim report to Congress of the TY 2003 test sometime in March. It will capture data around what happened without drawing conclusions. For example: how many people answered a particular question in a particular way; how much did it cost them to file their returns and was it a burden? It will not include how many people did not certify or how many people did not certify successfully or did not claim the credit which they qualified for. The final report for the TY 2003 will be completed in June 2005. A copy will be provided to the Committee.

The EITC Program worked with an independent contractor and developed a survey that will be ask about the taxpayer’s understanding of the tax return filing process, state of mind when filing, burden, and attitude. It will also try to get at the number of eligible taxpayers that were discouraged from filing. Williams will forward a copy of the survey to the committee. The program has two goals: reducing errors and maximizing participation. Therefore any procedure set for to reducing errors must also increase participation.

There are numerous taxpayers who do not file a tax return because they are afraid of the government and may be eligible. There also may be grandparents who do not realize they are eligible for the credit. Efforts are being made to validate all certifications submitted. In the 2003 test, the filing status of a taxpayer that successfully certified for EITC was almost always accepted. Auditors were told to focus on certification.

Questions that have come up with pre-certification: Do taxpayers need help with certification? Are preparers available to do so and at what cost?

Williams is interested in receiving feedback from the Committee on the idea of testing in rural areas. Williams will be forwarding a memo to Staff for the Committee to comment on.

Joint Committee Report
None

Office Report
Jenkins informed the Committee that after conducting the cost comparison of Chicago, Atlanta and Las Vegas for the May face to face meeting, Atlanta seems to be the most cost effective. Jenkins will research hotels in Atlanta and report in the March 17th meeting.

Self Introduction of New Program Owner
Alisa Blum, Project Manager, EITC Stakeholder Engagement has been temporarily assigned to replace Kay Farrow who has recently retired. Alisa gave a brief description of her Internal Revenue Service experience. She also expressed her delight with being assigned to the Committee.

David Swan, EITC Office Detailee has also been temporarily assigned to assist Alisa for the next 6 weeks.

Review of Prior Meeting Action Items
Committee Members

• Respond to email requesting volunteers to the new Communication Committee (completed)

Malcolmson

• Email a Survey to the full Committee on EITC expertise level (to come in March)

Farrow

• Provide Committee with original CP 79 to compare (completed)
• Forward Jenkins the Electronic Press Kit that will be used for HUD Kiosks (completed)
• Send Jenkins the Grassroots Event Schedule (completed)
• Recommendation Responses (forwarded for Alisa Blum)

Public Input
Susan Morganstern, Legal Aid Society, Cleveland, OH asked whether letters requesting certification in Hartford are sent in languages other than English. David Williams responded that taxpayers may request letters in Spanish.

New Action Items
Blum

• Provide Committee with responses to the five EITC Committee recommendations referenced in the November 18, 2005 David Williams letter.
• Send Jenkins EITC marketing materials

Jenkins

• Research hotels in Atlanta for May 5th-7th face to face meeting.
• Resend the original CP 79
• Resend the Electronic Press Kit that will be used for HUD Kiosks
• Resend Grassroots Event Schedule

Williams

• Provide Committee with a memo on a certification test in rural areas for comment
• Provide Committee with pre-certification survey

Closing Assessment
All Members thought it was a very informative meeting.

Next Meeting March 17, 2005 @ 2:00 pm EST