Wage & Investment Reduce Taxpayer Burden (Notices) Meeting Minutes

September 22, 2004
Noon ET

Participants (Panel Members):

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

Not Present:

• Mary Balmer
• Curtis Feese
• Robin Gausebeck
• 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)

Welcome
Committee Chair Skip Eshelman welcomed everyone to the September call.

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

Review/Approve Prior Meeting Minutes
Committee Chair Skip Eshelman asked if there were any corrections to the minutes. Committee Member Tom Seuntjens clarified a couple of items on page 2. With these minor changes the minutes were approved.

Annual Report
Vice-Chair Eileen Shuman said she received a review of the survey from the face-to-face meeting in Pittsburgh and everything looked very good. She said scores were very good for a clear purpose for the meeting. She was very pleased with the results.

She said she received all the Sub-Committee Reports and she is going to use them to prepare the Annual Report.

She said TAP Program Analyst Sallie Chavez sent out an email with a news article from the TAS website called Happening and News about this TAP Issue Committee.

She asked Committee Member Tom Seuntjens how long the Annual Report should be. He responded by saying a couple of pages. More importantly is that there needs to be a 15 minute verbal report for the Annual Meeting in November. Vice-Chair Shuman stated she got good information and good responses. She is planning to have a Draft of the report done by next week to send out to the entire committee.

Committee Member Tom Seuntjens wanted to know who was going to make the presentation at the Annual Meeting. Committee Vice-Chair Eileen Shuman stated she would like to decline from doing this. Committee Chair Skip Eshelman stated he will present the report. Committee Member Seuntjens stated that some of the committee members were putting their report on PowerPoint. Committee Vice-Chair Shuman stated she would put it on PowerPoint for the presentation.

Joint Committee Report
Committee Member Tony DiMartino attended the Joint Committee Meeting in Denver on September 10 – 11, 2004 for Committee Chair Skip Eshelman. He made a report to the committee (see Attachment 1).

He stated he mentioned all the assistance given to the Committee by SPOC Representative Jim Cesarano.

Committee Chair Skip Eshelman thanked Committee Member Tony DiMartino for covering for him at the meeting.

Committee Vice-Chair Eileen Shuman asked if the Issue Committees were working better than the area committees. Committee Member Tom Seuntjens stated that is not always the case. Some issue committees work better than other and the same with the area committees.

He continued that the Issue Committees are being reviewed. There may be some that will be changes. All members will be able to change if they want to change. Half of the members of the panel will be new members. There will be 102 total members in November.

Committee Member Morgan Edwards asked if there would be any guidance to be able to make a change. Committee Member Tom Seuntjens stated that there will be a representative from each issue so members can make selections. He stated that he would hope that this committee would stay together.

Sub-Committee Report
Language Standardization
Committee Member Virginia Symonds said the committee received a request to review the Layout Standards. The sub-committee reviewed this document and they submitted a report. TAP Program Analyst Sallie Chavez stated that Bonnie Babcock sent an email stating they were in the process of compiling the comments from all the customers and she would provide feedback to the Issue Committee when that was completed. She thanked the sub-committee for their thoughtful input.

DAT
No report.

Committee Vice-Chair Eileen Shuman asked who would like to take over this sub-committee since Committee Member Robin Gausebeck was leaving. There was no response. She said she will work with TAP Program Analyst Sallie Chavez to see what can be done with the revised notices that need to be scored.

Good Government Act
Committee Member David Robinson reviewed the Good Government Act and submitted a report (Attachment 2). He said the report stated that notice sent after June 30, 2001 and before July 1, 2003 did not have to have complete interest and penalty information as long as there was a telephone number provided to be able to obtain the information. It has been extended for a couple of years. IRS did make a recommendation that complete penalty and interest be provided on the first notice to the taxpayer. This recommendation did not go through.

There was a discussion about the Good Government Act. Vice-Chair Eileen Shuman stated that the Good Government Act was not something that needed to be discussed, but that the IRS asked for assistance and the committee should provide it. SPOC Representative stated that Liz Williams was a good resource on this issue. He said it was proposed to Congress to only include penalty and interest calculation in certain issues. This was rejected and did not go forward. Liz Williams came to the issue committee asking what do taxpayers want. Liz Williams will have input as to what IRS’s position is on this issue.

Committee Vice-Chair Eileen Shuman asked the committee for their recommendation on this issue. Committee Member David Robinson said polling of taxpayers would be best. Committee Vice-Chair Shuman asked the rest of the committee how they felt about this. Committee Member Virginia Symonds asked about the timeframe. Committee Vice-Chair Eileen Shuman said there were no timeframes given. She said if the committee wants to pursue this, a list of questions would have to be developed. DFO Nancy Ferree stated that TAP Program Analyst Sallie Chavez prepared a list of questions. She will forward on to Committee Vice-Chair Shuman.

Committee Member Morgan Edwards asked will Congress be receptive to information. He doesn’t want to spend time on something that has no hope of being considered. SPOC Representative Jim Cesarano said the committee can discuss this with Liz Williams. Committee Member Tom Seuntjens said Liz Williams asked the committee for input and he doesn’t think we need to consider that point.

Comments from SPOC Representative
SPOC Representative Jim Cesarano said he doesn’t have very much. The budget is the big problem this year. It hasn’t been passed yet and isn’t expected to until maybe Spring. No travel can be done unless it is “Mission Critical” so he will not be able to attend the Annual Meeting in November.

Most of the funds for this coming year is being put into funding the CP5XX Dynamic Project Team (DPT). They are going to move forward on the Phase 2 of the Notice Elimination Notice NPIIT. There is no money for a face-to-face but they are going to try and have meeting by teleconference. They are planning to have a requirement meeting at the end of October or the first of November.

He asked if the committee wanted feedback on the scoring they did on the notices. Committee Vice-Chair Eileen Shuman said yet they did.

Committee Member Tom Seuntjens stated that the TAP had to get the Commissioner’s permission to hold the Annual Meeting in November because of not having a budget.

Recommendation
Committee Member Tom Seuntjens stated that the spreadsheet that Committee Member John Hollingsworth prepared to use to score the notices with the DAT was being worked on. He said he wants to get the issue committee’s approved and send to the Area to make the formal proposal. Committee Member John Hollingsworth said he will have it ready for the December meeting.

Meeting Close
Committee Chair Skip Eshelman asked for any other comments. There were none. He thanked everyone for attending. Committee Member Tom Seuntjens stated he would like to acknowledge those who were leaving TAP.

Meeting was adjourned.

CERTIFIED BY DFO NANCY FERREE 1/18/2005

Attachment 1

TAP Joint Committee Meeting
September 10-11, 2004 Denver, Colorado
Anthony Di Martino

On September 10 and 11, I represented David Meyer, Area 2 Chair and Charles Eshelman, W & I Notice Issue Chair at the TAP Joint Committee meeting, conducted in Denver, Colorado.

This report highlights the following:

1. Joint Committee agenda items,
2. Area 2 Committee Issues Presented, and
3. W & I Notice Issue Committee Issues Presented

Joint Committee Agenda Items
The following Joint Committee items were discussed:

1. Outsourcing of tax preparation by tax practitioners
   Outsourcing of tax preparation without knowledge or approval by the taxpayer is out of TAP scope.
2. Annual TAP Meeting and Draft Agenda Item Highlights (subject to change)
   Several highlights of the November, 2004 TAP Annual Conference were announced, including:
   • Wednesday, November 3rd
     • New TAP member orientation
   • Thursday, November 4th
     • Commissioner Everson to welcome;
     • Chair Committee Reports;
     • Issue Committee Selections
   • Friday, November 5th
     • Media 101 and Public Speaking Workshops,
     • Roadmap to IRS, and
     • Election of New Committee Chairs;
     • Issue Committee Meetings
   • Saturday, November 6th
     • Committee Chairs Reports (continued);
     • Area Committee Meetings;
     • Joint Committee Meeting;
     • Conclusion of Conference
3. TAP Committee Chair/Vice Chair Roles
   The maximum tenure to Chair a TAP Committee is two years. Chairing two TAP Committees is acceptable. Vice-Chair will be deemed Chair-elect.
   TAP Joint Committee Meeting
4. Discussion of IRS Responses
   The Joint Committee recommends that all TAP Committees request a written response from IRS program owners following the Committee’s submission of written recommendations or inquiries.
5. Exit Interviews and Self-Assessment of Retiring TAP members
   This information is not available to TAP members at this time. It is in the process of completion.
6. New TAP Handbook
   The new TAP Handbook, a self-help guide, is in the process of being printed, and it will be distributed to all TAP members at the annual conference.
7. Joint Committee Annual Report
   This Report is in the process of being prepared by the Joint Committee Chair, Tom Seuntjens, with the assistance of three members of the Joint Committee.
8. Joint Committee Issue Referral Form Items Approved:
   1. Simplification of 1041 (US Income Tax Return for Estates and Trusts) Instructions
   2. Tax Transcripts Available to Taxpayers at IRS Walk-In Centers
      Tax transcripts, currently denied to taxpayers at IRS Walk-In Centers, will again be available to taxpayers and practitioners pending approval of this issue.
   3. Changes to Interactive Installment Agreement Website expanded from 12 months to 24 months
   4. Marketing TAP
      A variety of various marketing avenues were recommended to improve taxpayer/practitioner recognition and awareness of TAP.
   5. CP521 Notice Improvement
      An improved CP521 Notice was recommended, which should include clearer language, inclusion of a pay-off date, and an overall reader-friendly tone.

Area 2 Committee Issues Presented
The Report I delivered on behalf of Chair, David Meyer, consisted of the following Area 2 Committee highlights:

1. 1041 US Income Tax for Estates and Trusts
2. W-4 Issue
3. Improving of Communications to Taxpayers
4. Request to Change TAP Name
5. Emphasis on outreach activities during 2004 TAP Joint Committee Meeting
6. Committee goals for 2005 resulting from Dick Bobb’s Self-Assessment Survey and Lessons Learned

W & I Notice Issue Committee Issues Presented
The report I delivered on behalf of Chair, Charles Eshelman, consisted of the following W & I Notice Issue Committee highlights:

1. Language Standardization
2. Document Assessment Tool adopted by IRS
3. DAT interaction with EITC Notice Committee-CP09&CP27 scored
4. Interaction with Small Business- Self Employed Operating Division
5. Scoring Notices CP 500 series
6. Usability Testing
7. Issue Committee to score IRS Notices before, during use and when Notices are retired
8. Notice Process Improvement Initiative Team
9. Dynamic Project Team
10. Good Government Act (Penalty and Interest)

In conclusion, I was impressed with the quality and the thoroughness of the Joint Committee. I want my fellow TAP committee members who have not had the opportunity to represent our Chairs at a Joint Committee meeting to know that the Joint Committee is not a “rubber stamp” Committee. Items that are elevated for approval by the Joint Committee are, indeed, thoroughly analyzed, researched and approved only when full consensus is reached.

Attachment 2

Summary of Good Government Act

Amend the Internal Revenue Code to revise Internal Revenue Service (IRS) collection and taxpayer safeguard provisions, including provisions regarding:

1. waiver of installment agreement user fees, partial payment, and agreement termination
2. Office of Chief Counsel review of offers in compromise
3. penalty increase for bad checks or money orders
4. financial management service fees
5. offsetting refunds from former residents
6. explanation of statute of limitations and consequences of failure to file
7. disclosure of tax information to facilitate combined employment tax reporting
8. expansion of declaratory judgment remedy to tax-exempt organizations
9. Treasury auction reforms
10. termination of employment of IRS employees for misconduct
11. IRS Oversight Board approval of use of critical pay authority
12. low-income tax payer clinics
13. enrolled agents
14. establishment of disaster response team
15. accelerated tax refunds
16. National Taxpayer Advocate reporting
17. penalty for failure to report foreign financial accounts and
18. repeal of personal holding company tax.

Revises penalty and interest provisions, regarding

1. individual and corporate estimated tax
2. interest abatement and interest netting
3. deposits made to suspend running of interest
4. suspension of interest for failure to contact taxpayer and
5. frivolous tax submissions.

Revises Tax Court provisions, including provisions regarding:

1. authority for special trial judges to hear and decide certain employment status cases
2. Tax Court authority to apply doctrine of equitable recoupment
3. filing fees
4. employees
5. pro se taxpayers
6. annuities for survivors of assassinated judges
7. life insurance, leave, retirement, and thrift savings coverage for judges
8. exemption for teaching compensation of retired judges from limitation on outside earned income
9. survivor annuities and
10. recall.

Revises confidentiality and disclosure provisions, including provisions regarding:

1. church tax inquiries
2. joint return collection activities
3. taxpayer representatives
4. offers-in-compromise
5. standards for requests for and consents to disclosure
6. civil damages for unauthorized inspection or disclosure
7. emergency circumstances
8. refunds
9. tax-exempt organizations and
10. investigative disclosures.