Wage & Investment Reduce Taxpayer Burden (Notices) Meeting Minutes

June 23, 2004
Noon-ET

Participants (Panel Members):

• Phil Bryant
• Mary Balmer
• Anthony DiMartino
• C. Morgan Edwards
• Charles (Skip) Eshelman
• William (Dick) Murphy
• David Robinson
• Thomas Seuntjens
• Eileen Shuman
• George Sullivan
• Virginia Symonds

Not Present:

• Curtis Feese
• Robin Gausebeck
• John Hollingsworth
• R. Jeana Warren

Staff Members:

• Sallie Chavez (Recorder)
• Nancy Ferree — DFO

Guests

• James (Jim) A. Cesarano, Program Analyst, Wage & Investment, Single Point of Contact (SPOC)
• Liz Williams, Modernization & Information Technology Services (MITS), Single Point of Contact (SPOC)

Welcome
Committee Chair Skip Eshelman welcomed everyone.

Roll Call
Program Analyst/Recorder Sallie Chavez took the roll call and quorum was met.

Review/Approve Prior Meeting Minutes
The minutes were approved by consensus.

Sub-Committee Report

Language Standardization
Committee Member Virginia Symonds said she had nothing to report but said DFO Nancy Ferree had sent something to her today and she would like her to address the group about it. DFO Nancy Ferree stated that the TAP Office had received the Language Standardization Guide. It was 324 pages long. It presently is on the IRS internal website as a document. They are attempting to get it into a web-based document. She did not know if it would be put on an external website. She reviewed several of the items in the document. She said TAP was mentioned several times in the document as contributors. Bonnie Babcock said in her e-mail to the TAP Office that she thanked the TAP members who contributed to the document.

DAT
Committee Member Robin Gausebeck was not on the call. TAP Program Analyst Sallie Chavez stated that all the DATs had been complete except for the CP504 which was assigned to Committee Member Morgan Edwards (as the lead). He stated he will work on this and get it to TAP Program Analyst Chavez by the end of the week.

SPOC Representative Jim Cesarano said the DPT leads for the CP500 series are going to schedule a conference call to discuss the DAT scores. After the call they would like to discuss the scoring with the committee. He will get back to the committee with more information after the conference call.

SPOC Representative Jim Cesarano informed the committee there would be usability tests done August 2 – 4 in Washington, DC, Montgomery, AL, Austin, TX and Oakland, CA. He would like to know if anyone would be interested in attending. He said the Wage & Investment Division does not have the funds to pay for the TAP to participate but if the TAP has funding, they would be welcomed to attend. Committee Member Mary Balmer stated she would be interested and since she is in the Washington area there would be no cost for her to attend. DFO Nancy Ferree suggested maybe more could attend. SPOC Representative Cesarano stated he needs to know as soon as possible. He asked TAP Program Analyst Sallie Chavez to provide the names of the attendees right away.

Committee Vice-Chair Eileen Shuman and Designated Federal Official Nancy Ferree asked that all work be done through the subcommittees. Once an assignment is given to the subcommittee chair/lead, the subcommittee chair/lead will assign to the subcommittee members. The subcommittee members will respond directly to the subcommittee chair/lead. Please don’t send the information to the TAP staff. Only the subcommittee chair/lead is to send the information to the TAP staff.

Committee Vice-Chair Eileen Shuman asked if everyone had the current version of the issue committee roster. There were several comments that they had old versions. She asked TAP Program Analyst Sallie Chavez to send out a current roster.

Committee Vice-Chair Eileen took a moment to recognize TAP Program Analyst Sallie Chavez for her outstanding support to this committee’s efforts. Several other committee members commented on this as well.

Referrals
Committee Vice-Chair Eileen Shuman asked Committee Member John Hollingsworth to assign a lead to this subcommittee while he is away. She is reporting there was no activity last month. She asked about previous report. TAP Program Analyst has not been able to forward it on. She will work on it when she returns from her leave.

NPIIT Report
Committee Member Phil Bryant said Exhibit 4 of the previous meeting indicated the response to the NPIIT Report. SPOC Representative Jim Cesarano stated that was the reason Liz Williams was on the call. He thanked the subcommittee for their report.

He said one of the purposes for this subcommittee was going to be to assist a design team with the penalty and interest computations. The team was to be scheduled early this year. There has been a change in this because of legislation called the Good Government Act. This explains how the IRS deals with penalty and interest computations on notices. He wanted this group to get taxpayer’s attitudes towards these computations.

Liz Williams is the Modernization and Information Technology (MITS) Single Point of Contact (SPOC) who works with developers in preparing notices. She gave a background on the interest and penalty computations. RRA 98 required penalty and interest computations to go out with every notice. The IRS asked for the legislation to be changed to only require the penalty and interest computations on the first notice. This recommendation did not go forward. They are going to try again to get this legislation changed.

All taxpayers get penalty and interest computations in the first notice. Subsequent notices do not include the penalty and interest computations. She said 95% of taxpayers pay after they receive the first notice. She would like to know how taxpayers feel about getting these penalty and interest computations in notices. She has no solid timeframes but it’s as soon as possible.

Committee Member Morgan Edwards asked what the taxpayer gets with an installment agreement. Liz Williams said that reminder notices do not include the penalty and interest computation.

Liz Williams reiterated that she would like to have the TAP find out how taxpayers feel about penalty and interest computations being attached to notices. She will send an email out to TAP Program Analyst Sallie Chavez with details of what she wants and TAP Program Analyst Chavez will forward to the subcommittee chair/lead.

DPT
Committee Member Tony DiMartino reported on his meeting in New Carrollton on June 16, 2004 (see Exhibit 1).

Comments from SPOC Representative
SPOC Representative Jim Cesarano said he was preparing his response to the TAP on their report to him on his NPIIT, Phase 1. He reported that Treasury Inspector General for Tax Administration (TIGTA) Report has given a very positive report on IRS Notices. This is very unusual for TIGTA. He wanted the TAP to know because they are part of this positive report.

New Business
Committee Member John Hollingsworth prepared a spreadsheet to use for the DAT. Committee Member Tom Seuntjens stated it was a good tool to be used for the DAT. He thinks the TAP should prepare a recommendation that this spreadsheet be adopted to be used with the DAT. SPOC Representative Jim Cesarano suggested to go ahead with the recommendation. He doesn’t think the contractor will have a problem with it. He thinks they will accept it. Committee Vice-Chair Eileen Shuman asked Committee Member Tom Seuntjens to write up the recommendation.

Committee Member Tom Seuntjens reminded Committee Vice-Chair Eileen Shuman to send issue committee recommendations to the Joint Committee via the monthly report.

Meeting Close
Committee Chair Skip Eshelman asked for any other comments. There were none. He said the next meeting is scheduled for July 28, 2004 at 12:00 noon EDT. The August meeting is the face-to-face meeting in Pittsburgh (August 12 – 14, 2004).

Meeting was adjourned.

Exhibit 1

Collection Notices Dynamic Processing Team(DPT) Requirements
DP500 Series Stakeholder’s Meeting
June 16, 2004 1100-1300 hours
Federal Building C6-190
New Carrollton, MD

I represented TAP and attended a requirements meeting that was held on Wednesday, June 16, 2004 at 1100 hours in Room C6-190 at the New Carrollton, MD Building, representing TAP Notice Issue Committee-DPT Subcommittee Chair. Anne McCann of the Kleimann Communications Group acted as facilitator at the meeting. IRS/TAP Collection Notices Dynamic Processing Team (DPT) members (see below) were invited to attend either in person or via speakerphone. Another member who attended this meeting is producing minutes of the meeting.

The purpose of this Report is to advise TAP W & I Notice Committee the following:

1. to provide an overview of the collection notices dynamic processing team (DPT) project,
2. to identify members who serve on the DPT team, and
3. to provide a summary outline of questions that was raised by the Kleimann Group during this meeting in order to guide the DPT process.

*Action Required from the June 16 meeting:*
TAP Feedback: Tony DiMartino was asked to forward to Jay Duffy DAT survey results provided by the TAP Notice Issue Committee.
(See Section 3- #3 below.)

1. Overview of Collection Notices Dynamic Processing Team project:
During Phase 1, the team will focus on Balance Due Notices (CPs 501, 503 and 504), LT-11 and Taxpayer Delinquency Notices (CPs 515 & 518). During subsequent phases, teams will be tackling notices used by the Automated Collection System, Automated Substitute for Return, Backup Withholding, Refund Hold and Installment Agreement programs. DPT’s focus is to modify content and language to promote overall customer understanding of these notices. It is hoped that implementation of the reinvented notices from Phase I will be in place by July 2005.

Collection notices will be redesigned by reflecting: business (technical requirements and deficiencies), function, messaging (customer satisfaction requirements), general comments and needs (feedback received from taxpayers/practitioners who have received these notices).

2. Collection Notices Dynamic Processing Team (DPT) Members

• Sallie Chavez, Taxpayer Advocacy Panel (TAP)
• Nancy Ferree, Taxpayer Advocacy Panel
• Carol Campbell, Chief Counsel
• Patricia L Young, NPL
• John Edgar, BSP
• John Kilcoin, CPS
• Leila Richardson, FA Program Manager
• Mary Williams, FA Program Manager
• Steve Bayder, Notice Gatekeeper
• Debra Petrakis, Notice Gatekeeper
• Pam Walker, SP IMF Branch
• Bill Murphy, W&I SP
• Tony Martinez, SBSE CAS
• Howard McMillan W&I Research
• Cindy Pennington, W&I Compliance
• Debbie O'Camb, W&I Compliance
• Priscilla Hagan, AM Program Manager
• Marcy Nelson, W&I C&L
• Ann Gelineau, W&I SPOC S
• idney Gardner, SBSE SPOC
• Andrea Law, Chief Notice Support
• Mark O'Donnell, TEGE SPOC
• Richard Patrick, LMSB SPOC
• Tom Horio, BSMO SPOC
• Liz Williams, MITS SPOC
• Deryle Temple, Taxpayer Advocate SPOC
• Dorothy Rucker, W&I SPOC Office
• Anthony R. DiMartino, Taxpayer Advocacy Panel (TAP)

3. Summary Outline of June 16, 2004 meeting:
Questions to be considered when redesigning the Collection Notices:
CP501, CP503, CP504, LT-11, CP515 and CP518)

1. What is the IRS legally required to say on the Notices?
2. How many Notices is the IRS legally required to send?
   Merrill from Legal Division will research this answer. She stated that a Jurat goes on the CP515 and 518 Notices. A Jurat is designed to compel truthfulness on the part of the signer.
3. TAP Feedback: Tony DiMartino will forward to Jay Duffy DAT survey results provided by the TAP Notice Issue Committee.
4. What are the best collection practices in industry? DPT team will look into the IBM 1993 collection notices assessment study prepared for IRS.
5. What is the rationale for the current Notice progression?
6. What is the cost of processing the Notices at each step?
   CP501 and 503 utilize regular USPS mail; CP504 is sent via Certified Mail. LT-11 is return receipt requested. DPT team stated that it is problematic for print sites to process return receipt mail. No businesses get LT-11 Notices.
7. Can the CPs 515 & 518 migrate to another system?
   Yes, it will take time and resources.

Ann McCann went around the room and asked for additional comments, etc., before closing the meeting. Below are three of many remarks contributed at this time.

1. Tony Di Martino commented that IRS Notices are improving. Notice terminology is progressing from negative, aggressive statements to positive, customer-friendly ones. He stated that he is delighted that TAP has been included in this process.

2. (?) stated that IRS is attempting to incorporate a customer PIN number in order to facilitate electronic payments.

3. (?) remarked that 1/3 of all installment agreements (IAs) default. This translates into approximately 800,000 accounts.

Summary:
Ann Mc Cann of the Kleimann group summarized the DPT timetable for the 500 series. She referred to this as a “short cycle.” Drafts will be made and distributed for comments shortly. August 2-4 will be the dates for testing the CP500s in Washington, DC, Montgomery, Chicago, Austin and Oakland. Upon approval, there will a “walk through.” On September 30, “Phase one” will end. “Phase two” will take place from October 1 through February 28, 2005. The entire process is projected to run from June, 2004 to July, 2005 for the Notice Series revisions. IRS is expected to use the new forms shortly thereafter.