Taxpayer Advocacy Panel (TAP)
Joint Committee Teleconference Minutes
Wednesday, April 4, 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, Ad Hoc
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

Welcome/Announcements/Review Agenda

JT Wright welcomed everyone and reviewed agenda.

Quorum met.

Bernie Coston asked if there were any questions regarding his office report (attached).  There were none.  Coston provided a recruitment update―185 applications were submitted as final.  There are currently 382 applications in draft.  There are no final applications from Idaho, North Dakota, Vermont, and Puerto Rico.  TAP Manager Nancy Ferree has been working with the Florida Local Taxpayer Advocate (LTA), who was the former LTA in Puerto Rico, to reach more potential applicants for Puerto Rico.  TAP Staff is trying to get publicity in Wall Street Journal as it was the source cited by many applicants as to how they heard about TAP.  The people who have an application in draft form will be contacted to encourage them to finalize their application; the final date to submit an application is April 30, 2007.  For the first time, TAP has had minimal problems with the online application process.  A question was raised on how far TAP goes to achieve geographical diversity within a state such as California.  Coston replied that TAP tries for a good geographical diversity, but does not want to bypass good candidates.

Coston noted that one issue from the Omaha town hall meeting is already resolved.  The issue was raised that the Form 1040 Schedule F, Profit or Loss from Farming, unlike the Form 1040 Schedule C, Profit or Loss from Business (Sole Proprietorship), does not have a line to carryover expenses reported on from Form 8829, Expenses for Business Use of Your Home.  The expenses must be reported on the “other” lines on the Form 1040 Schedule F.  The suggested resolution was to include the line on the Form 1040 Schedule F.  The Internal Revenue Service (IRS) agreed to include the line when the new form is published.

Bob Meyers was at the Omaha town hall meeting and complimented Christopher Miller, Public Affairs Specialist, who did an incredible job on getting the word out.  Meyers was interviewed on several radio stations and also did a television interview due to Miller’s work.  The carryover has been tremendous and three people recognized Meyers from television and brought issues to him.  About 70 people attended this town hall meeting.  National Taxpayer Advocate Nina Olson did a great job.  Panel members Ken Wright, Chris Freeman, and Lee Stieger were also at the town hall.  Representatives from a congressional office and two senator’s offices and the Nebraska Tax Commissioner Douglas Ewald attended as well.  One of the writers from Associated Press wrote a story which was picked up by many newspapers across the IRS as well as in Great Britain. 

Mary Ann Motza reported that the Phoenix town hall went well too.  There were at least 50 citizens in attendance.  There was a great deal of discussion and TAP got good issues from this meeting.  TAP Manager Judi Nicholas said they also had great support from their media folks.  Olson engaged the participants wonderfully and the town hall session ran so late, there was no time for the focus group.  Many issues were raised that related to the Offer in Compromise (OIC) including the twenty percent down payment and centralization.  Other issues raised were back-up withholding and social security garnishment.  TAP members did a superb job conveying what TAP is and why someone might want to communicate ideas to the TAP or why someone might want to consider applying for TAP.  A gentleman from the local Low Income Tax Clinic (LITC) talked about some homeless issues but ran out of time.

Max Scott reported that the Notices Committee held their face-to-face in Atlanta, GA which was an excellent meeting.  He also noted that Olson had an article in the Money Magazine.

Tom Karwin said the Communication Committee met about ten days ago.  The committee discussed publicizing the TAP vision statement.  There is not an explicit budget for publicizing it so the committee is looking for low cost suggestions.  Send any ideas on low-cost ways to publicize to TAP Member Gil Yanuck, who is heading that committee. 
ACTION:  All members should send ideas on low-cost ways to publicize the TAP vision to Gil Yanuck, a TAP member on the Communication Committee or to Barbara Toy who will make sure it is forwarded. 

The survey of new members will be done by email and should be sent out soon.  The committee is also working on eliminating the duplication of announcements from various TAP sources.  The TAPSpace demo should be available late April or early May.  Yanuck said it would be in the best interest of TAP for the Communication Committee to review the annual report before it is published.  Program Analyst Barbara Toy said Larry Combs, the former TAP chair, expected to have a draft completed by next week for the Joint Committee to review.  Members expressed concern that the annual report is not available yet.  Members would like to set a practical date for the completion of this report.  Toy pointed out that part of the delay this year was the individual committee reports had a later due date.  Another part of the problem is that Issue Committee Chairs do not report the recommendations sent to the Program owner on the monthly committee reports throughout the year but include the information in the annual report.  Toy needs to check each of the annual reports against the database to make sure that all the recommendations are properly recorded which is time consuming. 
ACTION:  Bob Meyers and JT Wright will work on a time line for the Annual Report and will bring it to the full Joint Committee for approval.

Area 2 is recommending a modification to From W-9 to provide additional options in the firm type box; add a box for the telephone number of the submitter specifying that completing this box is optional and updating the instructions to reflect these changes.  They are also recommending that the Internal Revenue Service (IRS) reduce the reading level required to that of a high school graduate.  These modifications will greatly minimize errors in filling out the form.  Stan Wernz thought it would be more confusing; Ferd Schneider also expressed confusion at the proposed solution.  Ken Wright explained that a Limited Liability Company (LLC) is formed under state law but has no federal tax classification.  If you have an LLC that has only one member it is called a disregarded entity; meaning it has no significance for Federal tax purposes and is considered a sole proprietorship.  A two person LLC by default is partnership.  The sole proprietor or the partnership can file an election to file as a corporation.  Ken Wright thinks the IRS has a difficult time explaining what an LLC is.  Schneider asked why it is important to know whether the filer is an individual, a partnership or a corporation.  Wright answered there are different filing reporting requirements for the different entities.  JT Wright said it sounds like there needs to be further discussion before we elevate this issue and asked if the committee agreed to return the recommendation to the Area for more work.
DECISION:  The Joint Committee agreed to send the Area 2 recommendation, #3743, Form W-9 back to Area 2 for more work.
ACTION:  Lyn Sinnamon will bring Area 2 #3743 Form W-9 Revision back to Area 2 for revision.

Ken Wright offered to be on a conference call with Area 2 to answer questions on LLCs to help work on this issue.   Hank Mosler asked who owns the job to communicate back to the Area that their recommendation needs more work.  JT Wright answered that it is the chair’s responsibility.  The Joint Committee does acknowledge all the hard work the committee has already done; however, the Joint Committee has to have understanding of the issue before a decision can be made.  The question was raised on how the recommendation was put on the agenda and how it got through quality review if these questions were unanswered.  The quality review’s scope is to look at the spelling and grammar and the overall logical flow of the recommendation.  It is outside of the team’s parameters to comment on the merits of the proposal.  Meyers added that the questions raised exceed what the quality review team is supposed to do.  The Quality Review team is supposed to look at the issues to make sure they are clearly explained and understood.  When the Joint Committee looks at an issue, it is from a different angle, is this recommendation something the whole TAP can support.  The area chairs need to reinforce that when the Quality Review Team or the Joint Committee critiques an issue, it’s not to denigrate the issue, they are trying to make sure the issue is clear and credible and also taking a look at how the IRS will perceive it.  MaryAnn Motza is on the Quality Review Team and she was surprised by what Area 6 missed and thought was stated clearly but was misunderstood by the quality review team.  It is always good to have a fresh set of eyes look at any document.  Lyn Sinnamon stated that he would like to bring the recommendation back to the area so they can add to the background and the analysis so the IRS can readily accept it. 

Area 6 is recommending reducing the concerns of each tax professional who must disclose his/her prior year Adjusted Gross Income (AGI) as a requirement to register for IRS e-services.  Additionally, the committee seeks clarity and consistency in the terminology used on the e-services web site.  There is concern among professionals about using their personal AGI when signing up for e-Services.  This is a real concern if they are part of a group or corporation.  The Area found some inconsistencies in the language used in the explanation of why it is necessary to provide the information, but found the IRS had a very logical reason to request it.  Area 6 recommended clarifying the language and suggested specific wording.  The recommendation has many pages because it includes mock-up pages of how IRS can modify the web site.  There are some costs involved in changing the site; however the benefits outweigh the barriers.  The costs are minimal to make the changes and would address the concerns of those professionals who are using E-Services.  There are only 56,000 users at this time which is an incredibly small number. 

Schneider asked there be more time to review the issue before the Joint Committee makes a decision.  Agreement was reached for recommendation to be put on May’s agenda. 
DECISION:  Move Area 6, #3942 E-Services to the Joint Committee’s May agenda. 

After doing a cost comparison of several cities, Denver is least expensive; Chicago second.  The committee will meet in Denver on June 24-26, 2007 and in Chicago in October.  The length of meeting is at discretion of the agenda.  The committee could potentially work into the evening to avoid having to meet Wednesday morning. 
ACTION:  Coston, JT Wright, and Meyers will work up a tentative agenda for the May conference call to help set times for the face-to-face meeting.

If you have issue suggestions to speak to the Commissioner about, forward them to JT Wright and Meyers before the new deadline which is changed to the end of April.  Coston said he will try to set up a meeting with the Commissioner toward the end of May.  He may have issues he would like us to look at and those could be presented to the full committee at the face-to-face meeting in June.
ACTION:  All members should send their suggestions to J.T. Wright and Bob Meyers regarding issues to discuss with the commissioner by April 30, 2007.

Suggestions will be put on the agenda for the face-to-face meeting in Denver.

Decision:  March 7, 2007 Joint Committee minutes approved by consensus.

Meeting evaluations will be sent out to the full committee.  Please fill out as soon as the meeting is completed and forward to Toy.  

Meeting Adjourned
Due to time constraints, not all agenda items were addressed.  They will be carried forward to the May meeting.

Next Meeting is May 2, 2007, at 1 pm ET

Decisions:

• The Joint Committee agreed to send the Area 2 recommendation, #3743, Form W-9 back to Area 2 for more work.
• Move Area 6, #3942 E-Services to the Joint Committee’s May agenda. 
• March 7, 2007 Joint Committee minutes approved by consensus.

• All members should send ideas on low-cost ways to publicize the TAP vision to Gil Yanuck, a TAP member on the Communication Committee, or to Barbara Toy who will make sure it is forwarded.
• Bob Meyers and JT Wright will work on a time line for the Annual Report and will bring it to the full Joint Committee for approval.
• Lyn Sinnamon will bring Area 2 #3743 Form W-9 Revision back to Area 2 for revision.
• Coston, JT Wright, and Meyers will work up a tentative agenda for the May conference call to help set times for the face-to-face meeting.
• All members should send their suggestions to J.T. Wright and Bob Meyers regarding issues to discuss with the commissioner by April 30, 2007.

Decision and Action Items from Previous Meetings

• Consensus on approving the February 7, 2007 Joint Committee minutes
• The Areas 1. 3. and 4 chairs will get together today and discuss the possibility of combining #3734, #3758, # 3908, Downloadable Forms, and #3705, OCR Forms Availability.  The issue will be addressed again later in the meeting. (10/12-14/2006) 
• TAP will not have a formal policy on setting the frequency of full committee and subcommittee meetings; however, committees need to be flexible and not meet if there are no decisions that need to be made or work to be done.  (10/12-14/2006) 
• When a committee receives information about a problem that IRS needs to be aware of quickly such as an incorrect link on its website, the committee should draft a letter following the format for referrals as closely as possible.  The paragraph will be reviewed by the Joint Committee and submitted, if approved, to the IRS under the TAP Chair’s signature.  (10/12-14/2006)
• Communication Strategy approved as presented.  (11/01/2006)
• Success stories should be sent to all members via email prior to the Joint Committee teleconference.  (02/07/2007)
• Consensus to elevate Area 1 #3934, Form 8453 Usage Reduction with minor grammatical changes.  (02/07/2007)
• Consensus to elevate Area 1 #3927 Form 8300 e-filing Capability with minor grammatical changes.  (02/07/2007)
• Consensus to elevate Area 1 #3926 Form 8300 Filing Instructions with minor grammatical changes.  (02/07/2007)
• Consensus to elevate Area 1 #3334, Form 1127 Revision.  (02/07/2007)
• Consensus to elevate Area 6 #3233, Estimated Tax Payments Rules for Self-employed Taxpayers.  (02/07/2007)

ACTION ITEMS:

• A discussion of the Joint Committee face-to-face meeting will be added to the April 4th Joint Committee meeting.  (March 7, 2007)
• All members should forward any issues they believe should be brought up to the Commissioner to Wright and Meyers by March 28, 2007.   (March 7, 2007)
• The area chairs need to review the Communication Strategy, set priorities and develop a work plan to accomplish the strategies during the year.  (March 7, 2007)
• Toy will put responses to issues on TAPSpace
• Toy will send out an email to the chairs, vice-chairs and staff to see who will be attending each training session.  (March 7, 2007)
• Toy will send out the Joint Committee meeting survey after each meeting.  (March 7, 2007)
• Wright and Meyers will develop a process for discussing Joint Committee referrals via email prior to the meeting and document the process.  (March 7, 2007)
• Wright and Meyers will put information together and present to the committee at the April 4th Joint Committee meeting.  (March 7, 2007)
• J. T Wright will share the area’s outreach reporting template with the Communication Committee by sending to Judi Nicholas
• Toy will include only the active issues in the List of TAP Issues report but also run a list of issues in the parking lot by date received.
• Sandra Ramirez will ask Area 1 to prepare a response to IRS regarding the Schedule D Line for Carryover and bring the response back to the Joint Committee for approval
• 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.  (02/07/2007)

TAP Director
National Office Update
April 4, 2007

Following is a summary of issues from the TAP Director for the TAP meeting scheduled for April 4, 2007.   

TAP’s 2007 budget was approved by the NTA’s office. The National Taxpayer Advocates office was very generous in our allocation, while other offices were forced to take severe cuts, the TAP budget request was approved with a very small decrease.  As a result, all face to face meetings, town hall and tax forums are fully funded for the year.  Recent meetings completed in March:

• Brooklyn Town Hall Meeting,  March 6, 2007
• Notices face to face, Atlanta, March 14-16, 2007
• Omaha Town Hall Meeting, March 22, 2007
• Phoenix Town Hall & face to face, March 29-31, 2007

Upcoming Meetings in April:

• Area 4 face to face, Milwaukee WI, April 19-21
• Area 7 face to face, San Diego CA, April 19-21
• Area 2 face to face, Raleigh NC, April 26-28

TAP Staff

TAP welcomes Kayla Walker an analyst from TAS who will be acting as the manager of the Milwaukee WI office effective April 16, 2007.  We also welcome Anita Fields, secretary for the Plantation FL office.  Susan Gilbert, senior analyst on the Directors staff will be going on a 60 day developmental assignment effective April16, 2007.

Recruitment
Recruitment is currently moving at an excellent pace.  As of close of business on Friday March 30th we had received 152 completed applications and 355 in draft status.  Applications will be accepted through April 30, 2007...

Town Halls
With an aggressive schedule the National Taxpayer Advocate conducted three “TAP Town Hall Meetings” during the month of March.  Events were conducted in Brooklyn NY, Omaha NE, and Phoenix AZ.  All venues were well attended and resulted in numerous issues being generated for TAP members.  One point of interest, at the Omaha event a citizen brought the issue of lack of information on the Schedule F form instructing farmers of possible business expenses.  The NTA personally took this issue back to the IRS, and it was immediately accepted.  This is a great example of a TAP success story.