Joint Committee Minutes

April 5, 2006

Members Present

• Paul Brubaker, TAP Vice Chair
• Larry Combs, TAP Chair
• Paul Duquette, Chair, VITA Committee
• Jerald Fireman, Chair, TAC Committee
• Dorothy Havey, Chair, Area 1
• Allena Kaplan, Chair, Area 7
• Sonny Kasturi, Chair, Burden Reduction
• Paul McElroy, Chair, Area 2
• Clifford McKenzie, Chair, Area 5
• Robert Meyers, Chair, Communication
• Maryann Motza, Chair, Area 6
• Ferd Schneider, Chair, Area 4
• Allen Scioli, Chair, Notices Committee
• Lillian (Beadsie) Woo, Chair, EITC
• James J.T.Wright, Chair, Area 3

Members Absent

• Patrice Marker, Chair, Ad Hoc Committee

Staff Present

• Bernie Coston, DFO
• Sandy McQuin, TAP Manager
• Barbara Toy, Program Analyst
• Nancy Ferree, TAP Manager
• Judi Nicholas, TAP Manager
• Sandra Ramirez, TAP Manager
• Susan Gilbert, Senior Program Analyst
• Inez DeJesus, Program Analyst
• Audrey Jenkins, Program Analyst

Guests

• Ben Chapman
• George Bates, Vice Chair, Ad Hoc
• Tom Karwin, Vice Chair, Area 7

Welcome / Announcements / Review Agenda
Larry Combs welcomed all to the call.

Roll Call
Quorum met.

Review Assignments
Bernie Coston stated the assignment to develop a script for the toll free line should be changed from staff to Sandra Ramirez. The following assignments will be carried over to next month.

All Chairs:

• After Toy places the Oversight Board information and links on TAPSpeak, the Area Chairs should send the links to their committee members.

Larry Combs:

• Send out a response to the letter Paul Brubaker received thanking him for his participation at the Oversight Board meeting.

Barbara Toy:

• Put Oversight Board links and the information from the meeting on TAPSpeak and forward link to all Joint Committee members.

Communication Committee:

• Look into process of how press releases are prepared and whether there is a way to ensure TAP is given the recognition it deserves.

Sandra Ramirez:

• Ramirez will design a method to question how callers to the TAP toll-free line learned about TAP. This information will help TAP evaluate the effectiveness of the TAP poster.

Success Stories
Sonny Kasturi reported that the burden reduction team completed recommendations on Subchapter S and Form 2553, Election by a Small Business Corporation, simplification. Initial feedback was that recommendations are on the mark. Bob Meyers reported that the Communication Committee received input from Joint Committee on the TAPSpeak survey and it is ready to be distributed. Mary Ann Motza asked if the survey needed to be brought back to the Joint Committee for final approval.

DECISION: Joint Committee reached concurrence to send out the TAPSpeak survey without further approval by Joint Committee.

National Office Report
Recruitment is in full swing. A news article ran in the Washington Post and the Wall Street Journal which resulted in many calls to the TAP toll free number. Currently, there are 272 final applications completed on line and over 921 still in draft status. Forty-three states, including Washington, D.C., and Puerto Rico are represented. Recruitment closes on April 28, 2006. Ranking is the week of May 15 and interviews will be conducted in June by telephone. Members will be asked to participate in the interviews. The TAP Annual Report has been sent to the printer. A printed version will be sent to all members.

ACTION: Staff will send Combs a copy of the annual report to take to the Commissioner.

There have been four successful town hall meetings to date: Philadelphia, PA in December; San Diego, CA in February; Davenport, IA in March; and Jackson, MS also in March. There are three more scheduled. The Cincinnati town hall, scheduled for June 7, has not been finalized yet. TAP has received grassroots issues from the public at each of the town hall meetings.

Staff is looking at the week of December 11, 2006 for the annual meeting in Washington, D.C. The options are the same hotel as last year which was the Grand Hyatt on Capitol Hill, the Hilton in Crystal City near the Pentagon, or the Hamilton Crowne Plaza. That was the hotel where TAP traveled between two buildings for the meeting sessions. Dorothy Havey requested that staff inquire whether high speed internet access is available when contracting with the hotel. Her concern is not the cost but the availability.

Meeting with Commissioner and Topics to Discuss
Combs asked for comments on the list of topics for discussion at the meeting with the commissioner and how they should be prioritized.

1. Provide the Commissioner an overview of TAP's activities and accomplishments this year.
   
2. Discuss ways the IRS can acknowledge and publicize TAP's contributions to the IRS.
   
3. Ask his perception of how TAP can best work with the IRS to advance IRS goals and objectives.
   
4. Identify a role for TAP in the process of defining long-term goals and priorities for taxpayer service in the Small Business and Self-Employed Operating Division to correspond with the way the Wage and Investment Operating Division proposes to officially solicit input from TAP in preparing its five-year service strategy).
   
5. Identify a role for TAP to provide input on Internet-based service initiatives.
   
6. Identify a role for TAP to provide input on training for IRS employees who provide tax law assistance at walk-in centers and by phone.
   
7. Request information on IRS plans and opportunity for TAP input regarding additional staffing, especially during filing season, for walk-in centers in locales where taxpayers displaced by Hurricanes Katrina and Rita are concentrated.
   
8. Discuss ways IRS employees, especially "frontline" employees and managers, can be encouraged to submit taxpayer service issues they identify to TAP.
   
9. Explain TAP's new confidentiality and other ethical standards adopted by the Joint Committee to facilitate pre-decisional input, i.e., to allow full and frank exchanges between the IRS and TAP members before issues become public.
   
10. Discuss expanding TAS authority and functions as contemplated by the 1998 tax act.
    

DECISION: The Joint Committee agreed to address issues 1 through 5 in the current order.

Kasturi requested adding the issue of taxpayers’ privacy and sharing of data with third parties. There was some disagreement on what TAP’s position is or should be on this subject and it was suggested that TAP merely mention that TAP is concerned about this issue and would like to see IRS do their utmost to protect taxpayer privacy. Paul Brubaker noted that last year the Commissioner gave TAP a vision toward customer service and the TAC closures and the blueprint. TAP should know the direction the IRS is taking for the next two to three years. What does IRS want to accomplish this year and where does the IRS see TAP and what would the IRS like TAP to do? TAP doesn’t need to bring up concerns IRS is already addressing. TAP does need to get some real results this year. Per Sandy McQuin, the Joint Committee needs to reword the message since some of these projects are already completed. Paul Duquette noted that the Commissioner said the IRS will become more dependent on volunteers to provide information to taxpayers and the Commissioner’s goal is that people go to kiosks and the internet to obtain service. Commissioner meeting attendees should review the notes from the last Commissioner meeting with the Joint Committee.

ACTION: McQuin or Toy will send out Gwen Handelman’s report from last year’s TAP meeting with the Commissioner to all Joint Committee members.

Combs suggested changing the wording in #5 to talk about staffing and how it will be implemented vs. Katrina and Rita and add the volunteer plan to this point. Brubaker suggested when talking about how to best work with IRS to advance IRS goals and objectives to mention that TAP would like to be more proactive in the design phase of IRS projects. Beadsie Woo, Larry Combs, Paul Brubaker, Paul Duquette, Sonny Kasturi, and Dorothy Havey will be attending the meeting with the Commissioner on April 20, 2006.

ACTION: Chairs should send any concerns about items on the Commissioner’s list for inclusion on the new list to Brubaker.

ACTION: Brubaker will put together an agenda of items to speak to the Commissioner about. He will forward it to the whole Joint Committee for feedback and then will send the final list to the Commissioner before April 20.

ACTION: The panel members meeting with the Commissioner will have pre-meeting at 11 a.m.

Regulatory Change to Rules on Practitioners “Selling” Taxpayer Data
McQuin stated that this issue or one part of it was previously elevated to the IRS by TAP. Combs will use the letter as a starting point to pull information on the selling of taxpayer data to bring to the commissioner. Joint Committee members should send their comments regarding this issue and if the Joint Committee cannot come to agreement on TAP’s position on the issue, the discussion will just be a “heads up” to the Commissioner that TAP is interested in the issue.

Currently, taxpayers must agree to this by signing a consent form. The problem is that many people sign form(s) without understanding what they are signing. Havey said this is voluntary but some taxpayers may feel they don’t have a choice but to sign the consent.

ACTION: McQuin will send out recommendation previously elevated about overseas disclosure to Joint Committee members.

ACTION: All Joint Committee members should send their comments to Brubaker and Combs on the selling of taxpayer data issue.

ACTION: Brubaker will compile comments for the Commissioner meeting.

Recommendations

• Area 2 – Consolidation of Schedule D and D1
  Issue Statement– Internal Revenue Service's (IRS’) requirement to list each trade in Schedule D, Capital Gains and Losses, and D-1, Continuation Sheet for Schedule D, imposes an undue burden on taxpayers, and results in increased cost to the IRS in processing tax returns.

  The Area 2’s Consolidation of Schedule D and D1 recommendation does not apply for corporate; it only addresses individual taxes.

  DECISION: Joint Committee reached consensus to elevate the Consolidation of Schedule D and D1 with wording change to indicate the recommendation only applies to an individual tax return.

  ACTION: Toy will add wording that the Consolidation of Schedule D and D1 recommendations addressing individual taxes only and forward issue to IRS.

• Area 2 – Timely Response required on Envelopes
  Issue Statement–Many taxpayers fail to open Internal Revenue Service (IRS) time sensitive notices in a timely manner. Taxpayers, not only lose opportunities to contest assessments without going to tax court, but also get stuck with mounting interest and penalties. Allena Kaplan commented that the only objection IRS might have is the expense. Combs said hand stamping the envelopes may cut down on the expense. Kasturi asked if tit would be okay to share the recommendation outside of TAP. Yes, once the recommendation is agreed to, it becomes a matter of public record.

  DECISION: Joint Committee reached consensus to elevate the Timely Response required on Envelopes to the IRS.

  ACTION: Toy will forward the Timely Response required on Envelopes recommendation to the IRS.

Dates and Locations of Face-to-Face Meetings
DECISION: The first face-to-face meeting will be in Denver June 29, 30 and July1. The second face-to-face meeting is in Dallas Oct 11-14.

Closing
Kasturi will send a draft of the Form 1120S, U.S. Income Tax Return for an S Corporation, asked for comments to all and asked that chairs forward any comments on the proposal to the Burden Reduction Committee. Brubaker did an internal survey concerning VITA volunteer training materials and would like to send out to entire panel and asked if anyone objected. No objections. Brubaker asked chairs to encourage their committee members to respond and to ask them to forward to other volunteers for additional input.

Combs saw a report on national television that told people to pick up Publication 17, Your Federal Income Tax (For Individuals), if they do their own taxes. TAP had elevated a recommendation to publicize the existence of Pub 17, so TAP should feel good about this success.

Combs asked if any area recommendations were ready for the Joint Committee. Area 1 has recommendations that will be completed soon.

Meeting Adjourned

Next Meeting is Wednesday May 3, 2006, at 1 pm ET