Taxpayer Advocacy Panel (TAP) Joint Committee Teleconference Minutes
Wednesday, February 7, 2007 1 p.m. ET

Designated Federal Official
Bernie Coston, TAP Director

Members Present
J. T. Wright, TAP Chair
Robert Meyers, TAP Vice-chair
Bill Bly, Chair, Burden Reduction
Paul Duquette, Chair, VITA
Dorothy Havey, Chair, Area 1
Tom Karwin, Chair, Communication
Merijane (M J) Lee, Chair, AdHoc
Maryann Motza, Chair, Area 6
Hank Mosler, Chair, Area 3
Ferd Schneider, Chair, Area 4
Max Scott, Chair, Notices Committee
Lynwood Sinnamon, Chair, Area 2
Stanley Wernz, Chair, EITC
Wayne Whitehead, Chair, Area 7
Ken Wright, Chair, Area 5
Bruce Zgoda, Vice-chair, TAC Committee

Members Absent
Jerald Fireman, Chair, TAC Committee
Tom Karwin, Chair, Communication

Staff Present
Sandy McQuin, TAP Manager
Barbara Toy, Program Analyst
Patti Robb, Note Taker
Steve Berkey, National Office Program Analyst
Sandra Ramirez, TAP Manager
Judi Nicholas, TAP Manager
Inez DeJesus, Program Analyst
Audrey Jenkins, Program Analyst

Guests:
Kimberly Brown, Area 2
Pat Bryant, Area 4
Ben Chapman, Area 2
Marilyn Clapp, Area 6
Harvey Epstein, Area 1
Hal Gadon, Area 1
Ed Uhrig, Area 6

JT Wright welcomed everyone and reviewed agenda.

Quorum met.

Coston said TAP will operate under a continuing resolution budget for the remainder of the year which means it will be operating under the 2006 allocations.  The annual business meeting is being planned the week of December 10 at the Fairmont Hotel which is located in the Georgetown area and is in close proximity to many restaurants.

Sandy McQuin has been detailed as the Director of Low Income Tax Clinics (LITC) as of March 5, 2007.  It has not been determined who will be filling in behind her.  The Town Hall meetings have been scheduled:  March 6 in Brooklyn (Area 1).  TAP will partner with the Brooklyn Low Income Tax Clinic; March 22 in Omaha, Nebraska (Area 5); and March 29 in Phoenix, Arizona, (Area 6).  The Brooklyn meeting will be taped for the McNeil/Laird report.    

The annual meeting evaluations received will be put on TAPSpace for all members to review.  There was a good response rate.  TAP is up-to-date as far as submitting the recommendations to the Internal Revenue Service (IRS). 

Wayne Whitehead thought the press release announcing the annual meeting was fabulous this year.  Kudos to Steve Berkey and everyone else who worked on it. 

Robert Meyers reported for Tom Karwin.  The Internal Subcommittee of the Communication Committee has updated the communication strategy which continues to evolve.  The next step is the review by the area committees so they can help identify how to move forward.  There are particular actions that are assigned to the Joint Committee, the Communication Committee and some assigned to the areas.  There are assigned priorities but the group that is responsible for the action is free to set their own and they are also responsible for setting the goal dates.  The subcommittee has also been very busy working on developing standards for TAPSpace and has already prioritized needs.   

The next step is for the Area Committees to review and discuss how to implement.  Wright asked how the Communication Committee wanted the areas to implement.  Meyers stated
That Tom Karwin has prepared a document discussing the strategy which has not yet been vetted by the full Communication Committee.  It should be available within the week.

Wayne Whitehead announced that panel member MJ Lee was interviewed by the Singtao Daily, a national Chinese-language newspaper.  Lyn Sinnamon noted that Steve Fulkrod and Emilio Cecchi of Area 2 also had interviews.  Milissa Bensen, Area 6, was interviewed for a clear channel radio station which is broadcast nationally and there is interest in having her back for recurring interviews to keep listeners informed of what TAP is doing.  Kim Brown from Area 2 was interviewed for television and for several newspapers.  Stan Wernz, Area 4, was interviewed by the Cincinnati Enquirer.  Julie Jason, Area 1, was interviewed on National Public Radio and there is also interest in follow-up interviews.  Several Area 3 members were interviewed in newspapers and on television.  Ken Wright was interviewed by several different newspapers.

Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return, must be mailed to the IRS when additional paper forms are required to be associated with an individual’s electronically filed tax return.  However, many paid preparers unnecessarily use this Form instead of the Form 8879,IRS e-file Signature Authorization, which does not need to be mailed to the IRS.  Over 13 million Forms 8453 were filed last year; many unnecessarily.  TAP’s aim is to reduce the number of tax preparers using Form 8453 merely for the purpose of transmitting the signatures which can be accomplished by changing the wording in the Form 8453 instructions.  Wright asked the committee if there were any objections to elevating the recommendation.  There were none.  However, members suggested grammar corrections.  Wright asked that all those who had grammatical or spelling corrections to any of the referrals on this call’s agenda or for future meetings send them by email to Barbara Toy.

ACTION:  Any one who finds grammatical errors in the Joint Committee pre-read materials such as minutes and referrals should send the suggested corrections to Barbara Toy.

DECISION:  Consensus to elevate Area 1 #3934, Form 8453 Usage Reduction with minor grammatical changes.

Individuals and businesses are required to file a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, for large or suspicious cash transctions.  The current IRS procedures requires submitting a paper copy of Form 8300 when reporting these transactions.  In keeping with the policy of converting to electronic filing, it should be possible for individuals and small businesses to file Form 8300 electronically.  TAP recommends that, as part of the IRS technology upgrade, the IRS develop or otherwise acquire software to enable individuals and businesses to file electronic versions of Form 8300.

DECISION:  Consensus to elevate Area 1 #3927 Form 8300 e-filing Capability with minor grammatical changes.

The current instructions for IRS Form 8300 is unclear as to what constitutes a “suspicious activity” for reporting purposes.  Also, regulations do not seem to grant “safe harbor” protection for those who file a voluntary report.  TAP recommends that reference to the Suspicious Activity Report (SAR) requirements for those who file Department of Treasury/Financial Crimes Enforcement Network (FinCen), Form 104, Currency Transaction Report, should be added to the instructions of Form 8300.  In addition, a statement should be included saying those filing voluntarily will be afforded the same protection as for SAR filers described in Federal law (31 U.S.C. 5318(g) (3)).

DECISION:  Consensus to elevate Area 1 #3926 Form 8300 Filing Instructions with minor grammatical changes.

Form 1127, Application for Extension of Time for Payment of Tax, has not been revised since November 1993 and the information as to where to file this form and the verbiage as to whom approves the request are both obsolete.  TAP proposes that the IRS review and revise Form 1127 in the next periodic set of form revisions it performs.  

DECISION:  Consensus to elevate Area 1 #3334, Form 1127 Revision.

This issue relates to estimated tax payments.  Some self-employed taxpayers are financially overwhelmed when their estimated tax payments become due.  TAP hopes to identify options for self-employed taxpayers to make their payments based on how and when they earn income.  The quarterly schedule for making payments is not broken into true quarters, due dates are April 15, June 15, September 15 and January 15 of the following year.  TAP wants to make sure IRS’ publications inform taxpayers that they are not prohibited from making more payments and/or they can ask for voluntary withholding.  The committee considered different solutions to the problem but this addressed the Commissioner’s objection to The Treasury Inspector General Tax Administration’s (TIGTA) suggestion to require monthly payments and will be more cost effective all around.

Wernz asked why the committee did not suggest a change in the quarterly payment due dates and Marilyn Clapp replied that the suggestion would require a law change which cannot come from TAP.

It was suggested that the recommendation was very wordy and should be slimmed down.  MaryAnn Motza replied that the committee put in all the details because they felt the discussion of how they reached the suggested solution was necessary to convince IRS to accept the recommendation.

DECISION:  Consensus to elevate Area 6 #3233, Estimated Tax Payments Rules for Self-employed Taxpayers.

Schneider suggested sending out the meeting satisfaction survey and seeing how many people respond.  If there aren’t many responses, then return to just the verbal responses at the end of the meeting.  It was agreed to and JT Wright encouraged everyone to complete the assessment and also include suggested agenda topics for future meetings.

ACTION:  Toy will send out a Meeting Satisfaction Survey for the Joint Committee meetings and add a segment on suggested agenda topics for future meetings.

Committee was pleased to get written national office report and other pre-read materials the week before the meeting.

Meeting Adjourned
Meeting adjourned 1:07 pm

Next Meeting is March 7, 2007, at 1 pm ET

• Consensus to elevate Area 1 #3934, Form 8453 Usage Reduction with minor grammatical changes.
• Consensus to elevate Area 1 #3927 Form 8300 e-filing Capability with minor grammatical changes.
• Consensus to elevate Area 1 #3926 Form 8300 Filing Instructions with minor grammatical changes
• Consensus to elevate Area 1 #3334, Form 1127 Revision.
• Consensus to elevate Area 6 #3233, Estimated Tax Payments Rules for Self-employed Taxpayers.

ACTION ITEMS:

• Any one who finds grammatical errors in the Joint Committee pre-read materials such as minutes and referrals should send the suggested corrections to Barbara Toy.