SB/SE Burden Reduction Issue Committee Meeting Minutes

November 7, 2006
3:30 P.M. ET
Teleconference

Program Owner

• Bayder, Helene

Designated Federal Official

• Ramirez, Sandra, Brooklyn, NY, Manager

Committee Members Present

• Behnkendorf, Larry, Waterford, MI, Member
• Bland, Sandra, Bemidji, MN, Member
• Bly, Bill, Wayne, PA, Member
• Gursey, Gregory, Anchorage, AK, Member
• Guthmann, Howard, St. Paul, MN, Member
• Hafer, Donna, Burlington, KY, Vice Chair
• Kasturi, Srinivasan, West Orange, NJ, Chair
• Landauer, Steven, Davenport, IA, Member
• O’Donnell, Marie, Riverwoods, IL, Member

Committee Members Absent

• Barry, Shaun, Franklin Square, NY, Member
• Cordeiro, Daryll, Mobile, AL, Member

TAP Staff

• Knispel, Marisa, Brooklyn, NY, Analyst
• Odom, Meredith, Brooklyn, NY, Secretary

Other Attendees

• Davis, Judy
• Margulies, Howard
• Schampers, Rick
• Tiberio, Joe

Welcome
Kasturi welcomed all members and guests.

Roll Call (quorum has been met)

Review Agenda

Project 94X Draft
The team working on this project recently completed the draft of Form 941X presented at this meeting. Separate drafts are currently being designed for Forms 943, 944 and 945 that will be used to amend such forms.

Davis asked the members not to share this draft or any with the public. It will be released to the public by 2008.

The committee approved this draft of 941X and other similar revisions proposed for 943X. The committee will look at forms 945X and the 944X when ready.

Misclassification Subcommittee
Worker Misclassification (Employee vs. Independent Contractor)

Kasturi stated that he has incorporated member’s comments received thus far. The plan is to revise the proposal after this meeting to incorporate any new comments and send it out to all the committee members for their comments before forwarding to Beth Tucker. Tiberio commented on the educational recommendations addressed by the committee’s proposal. He informed them that these concerns would have to be addressed by the Stakeholder, Partnerships, Education and Communication (SPEC) Unit which is part of the IRS’ Small Business Self Employed (SBSE) organization. SPEC is responsible for working with the Practioner community and small business organizations to provide information through educational venues such as tax forums, newsletters etc. SPEC is a small organization but they will try to improve compliance through non-audit methods.  Bly inquired about SWETR (Service Wide Employment Tax Reporting System) by which the IRS measures non-compliance. Landauer provided Kasturi with some suggestions on revising the proposal. Schampers suggested the committee consider recommending the mailing of notices on a pilot basis. Kasturi mentioned the idea of posting posters/notices that explain the employer’s and employee’s rights in these areas.   Taking all these suggestions in consideration, Kasturi will revise the proposal and would like to send proposal to Beth Tucker in a couple of weeks.

Finally, Tiberio thanked the committee members for their input on this misclassification issue.

Joint Committee Report-Out
Ramirez indicated that the staff is currently preparing the agenda for the Annual Meeting. It will be shared with all via email in order to obtain feedback.

Kasturi reminded the members that both the Area and Issue Committees will have dinners to have the chance to socialize with the new members. If anyone  plans to bring their spouse to the dinner, please let Kasturi know for reservation purposes.

Guthmann – stated that he is concerned about the JC procedure for approving referrals. Bly and Landauer also expressed similar sentiments. Kasturi requested them to write to Bernie Coston, Director of TAP expressing their sentiments.

Public Input
No public Input. Guest Howard Margulies who will be part of this Committee in the coming year thanked all the members for allowing him to participate in this call. 

*These minutes were approved by the TAP Area/Issue Committee on Date 12/7/06.