Brooklyn District Meeting Minutes

Date: March 21, 2000

Time: 6:00-9:15 PM

Location: CAP Office: 10 MetroTech Center, 625 Fulton Street, 6^th Floor

Brooklyn, NY 11201

Panel Members Attending:

Ed Maher, Vice Chairperson

Ethel Richards

Laura Greenberg

Burton Kahn

Kristen Bailey, DFO

Tony Fandozzi

Horace Aiken

IRS Staff Attending:

James McGurn, Cap Analyst

Gita Hecht, CAP Analyst

Leonides Rivera, CAP Secretary

Louis Morizio, TAS Manager

George Deller, Senior Management Analyst

Absentees:

Jim Montes, Chairperson

Marie Nahikian

Matt Mihovich

John Rotondi

Guests:

Eileen Cain, CAP Manager

Public Attendees:

None

Opening of the Meeting

Vice-Chairperson Maher called the meeting to order at 6 P.M.

Review of February 25 Minutes

Panel member Kahn stated that the minutes only arrived today and members have not had a chance to review. He requested that they be sent out earlier. Other panel members agreed. Panel member Fandozzi noted this has been a chronic problem. CAP Analyst McGurn agreed that in the future minutes would be delivered no later than two weeks after the meeting. Vice-Chairperson Maher suggested that since four of the Panel members were absent and present members have not had a chance to review the minutes that the review of the minutes be tabled until the next meeting. Panel members concurred.

Public Meeting March 2

Vice-Chairperson Maher led the Panel members in a review of the March 2 public meeting, noting that he thought it went very well and perhaps was the best yet since speakers brought their problems and concerns to the Panel. Panel member Kahn feels that meetings held in public venues, such as schools and libraries would tend to increase attendance. Vice-Chairperson Maher advised that he and Panel member Greenberg visited the Flushing Library (the site for the June public meeting) and believes this location should yield greater public attendance. Panel member Fandozzi noted that as time goes on the best strategies for successful meetings will evolve. Panel member Kahn feels that the flyer should have the date and time of the meeting in larger print and better emphasized. Panel member Aiken stressed the need for language interpreters at the public meetings. Panel member Richards stated that this was particularly true of the upcoming meeting, noting that Flushing has a large Asian community. DFO Bailey stated that it is important to identify those populations most likely to attend a meeting. Panel member Greenberg noted that the representative from the Flushing Library seems to have good community contacts and can give insight as to what audience to target and those newspapers popular in the community. Panel member Greenberg stated that she felt town hall style meetings are not conducive to drawing a large attendance and that the Panel should consider other ways to reach out to taxpayers. She suggested attending targeted groups such as community meetings and small business forums. Vice- Chairperson Maher distributed a letter from Panel member Mihovich that also suggested various ways to reach out to the public other than public meetings and went on the record in opposition to conducting future town hall style meetings. The letter is attached and is an integral part of these minutes. Panel member Fandozzi questioned the appropriateness of the response of Panel member Greenberg to a speaker who raised doctrinal challenges to the legal requirements of individuals to file and pay Income Taxes and the meaning of voluntary compliance. He stated that CAP represents the taxpayer and should not convey any message that can be interpreted as defending the IRS, tax code or system. Panel member Greenberg replied that since the Panel had given the speaker a forum to espouse misleading information to the audience, she felt it necessary to advise the audience to not accept as fact what they had been told and to investigate further. The Panel concurred that the response was correct and appropriate. Vice-Chairperson Maher concluded by requesting CAP staff to issue thank you letters to various IRS employees and to the speakers who brought forth their concerns.

Reports of Working Committees

Language Diversity - Kiosk Project

DFO Bailey advised the Panel that the Kiosk is scheduled to be installed at the Queens Borough Public Library on March 24^th. At this time, however, the Kiosk is only enabled for English and Spanish, and she expects the Kiosk to be completely online no later than June. The Panel then discussed ways to advertise and promote the Kiosk once it is fully operational.

EITC

Panel member Greenberg advised the Panel that the sub-committee issued a letter to the Tax Forms and Publications Division commenting on the revisions to Publication 596 and providing a list of specific recommendations for changes. The letter is attached and is an integral part of these minutes. The sub-committee has received the EITC CD ROM and will review and provide feedback. The sub-committee believes that the EITC rules and worksheets are simply too complicated for the ordinary taxpayer. They would like to propose that the IRS replace the worksheets with a simple question and answer form to be submitted by taxpayers that would enable the IRS to calculate the credit.

The sub-committee would like to propose this directly to Commissioner Rossotti and by- pass the EITC Advocate Task Force. Discussion ensued. DFO Bailey emphasized that National Advocate Oveson is committed to supporting the proposals of CAP. Vice- Chairperson Maher advised that Chairperson Montes would be speaking to National Advocate Oveson on the best means to raise issues and that a decision be tabled until after that discussion. The Panel concurred.

Small Business

Panel member Richards advised of no new issues. The sub-committee's next order of business is to follow up with District Director Murphy on her plans to offer small business workshops as part of Problem Solving Days and tailoring workshops to specific issues such as Federal Tax Deposits and Form 941(Employer's Quarterly Tax Return).

Schedule R and AMT

Panel Member Kahn submitted to the Panel the final draft Proposal regarding changes to Schedule R. The proposal calls for indexing the limitations to the credit by 57%, equivalent to the rise in CPI from 1984 to 1998. The Proposal is attached and is an integral part of these minutes. The Panel concurred that since this is a legislative change it should be submitted to National Advocate Oveson. CAP staff will prepare and submit the Proposal to him. Panel member Kahn reviewed the suggestions by Panel members made to his proposal regarding AMT. Discussion ensued. He will continue to work on a final draft.

CAP Contacts

In the absence of CAP Manager Cain, CAP Analyst McGurn reviewed the monthly contact report. He noted four new cases were opened as a result of concerns brought forth by taxpayers at the March public hearing. The report on recurring issues and root causes will be presented to the Panel at the next working meeting. He advised that not all contacts received on the toll free number are taxpayer problems and that most callers are referred to the number by telephone directories and directory assistance operators in the belief they are reaching IRS. Most taxpayers wish to speak directly to a local IRS representative rather than use the toll free IRS number. Panel member Richards noted her own experience in contacting the IRS toll free number and being placed on hold. She stated many toll free numbers advise the caller on a projected wait time to speak with a representative. The Panel members felt that this would be an excellent proposal to submit. Panel member Richards will draft a proposal and submit to the Panel.

New Business/Other Matters

Vice-Chairperson Maher distributed copies of two letters addressed to the Panel regarding suggestions for improvement. He requested Panel members to review for discussion at the next working meeting.

DFO Bailey advised the Panel the District would conduct post filing season activities with employees. These will be employee appreciation activities throughout the offices of the district. It may present the Panel a time to meet with employees as part of the Panels anniversary plans. She will confer with the District Director and advise the Panel of specific dates.

Vice-Chairperson Maher led the Panel in a discussion of the process for members to submit proposal ideas. The subject arose because of concerns brought forth by Panel member Nahikian. Vice-Chairperson Maher noted that no formal procedure was ever put in place. Successful proposals that have been submitted have followed the following process: Panel member submits a suggested proposal to the Panel in writing; briefly describes the proposal and requests the Panel members to review and contact for questions or feedback; the proposal is placed on the agenda for the next business meeting for further consideration and review; if the Panel concurs on the value of the proposal a committee is formed (if necessary) for further research; once the proposal is fully developed the Panel concurs or not concurs on sending it forward to the proper channels. Vice-Chairperson Maher asked panel members if they were satisfied with the current process or do we feel we need to formalize or change it? Panel members felt the current method has worked and we should leave the process informal and flexible. The Panel concurred that this procedure in general has been successful for those members who have submitted proposals.

The Panel members discussed in the event a Panel member is unable to attend a meeting but wishes to have the proposal considered another Panel member can be requested to bring the proposal in his/her place. In addition, the Panel members discussed the feasibility of having an absent member participate in the meeting via telephone. Panel member Fandozzi opposed this, stating that past sub-committee meetings with conference calls were unproductive and disruptive.

Vice-Chairperson Maher advised the Panel that 10,000 postcards with the CAP logo had been received for use in contacts and other outreach efforts.

Vice-Chairperson Maher advised the Panel that they have been invited to the National Association of Tax Preparers conference to be held in Washington, D.C. on June 23^rd and 24^th. The CAP has been offered a table free of charge. Vice-Chairperson Maher requested interested members to advise if they would like to participate.

Senior Analyst Deller advised the Panel that the IRS will hold a Filing Season Post Review in Virginia and suggested the Panel may desire to participate.

Panel member Greenberg discussed the CAP Analyst's February 25^th report on IRS steps being taken to resolve systemic issues identified after the first Town Hall meeting and agrees to accept the report with no further action to be taken by the Panel at this time. The Panel members concurred.

CAP Analyst McGurn advised the Panel of the threaded messaging WEB site. This site is open to all Panel members throughout the country and provides a means to share information and discussion between the four CAPs. He advised the Panel that their proposal for employee business cards has been accepted and that Forms and Publications is preparing a letter for signature. He also reminded advised the Panel that a Problem Solving Day is scheduled for March 22 at the Rego Park office.

New Proposals

Estimated Tax Issues

Panel member Greenberg would like to review issues arising from the estimated tax provisions. The Panel concurred. Members Greenberg and Kahn will review and advise.

Other Indexing Items

Panel member Greenberg advised that Cap staff is reviewing areas of the tax code that have possible indexing issues similar to Schedule R. Members Greenberg and Kahn will review when received and advise.

Forms Distribution

Panel member Greenberg would like to review the possibility of expanding sites that provide tax forms and publications. Vice-Chairperson Maher will review the current locations and DFO Bailey will advise the Panel what sites the IRS District currently provides.

Taxpayer Incentive to E-File

Panel member Fandozzi suggested the Panel review a report by the Suffolk County Water Authority (SCWA). The report is attached and is an integral part of these minutes. The report notes the success of providing credit to those customers who read their meter and telephones the result to SCWA. Since the IRS expends significant resources to process paper returns, perhaps the IRS should consider offering a similar incentive to those taxpayers that file electronically. Senior Analyst Deller notes that Secretary Treasurer Sumner has proposed this in a report. He will obtain the full report and provide to the Panel members.

Adjournment

Panel member Kahn made a motion to adjourn and DFO Bailey seconded. The meeting adjourned at 9:15 P.M.

The Panel members accepted these minutes as amended on April 14, 2000.

I hereby certify that, to the best of my knowledge, the foregoing minutes are accurate and complete.

Jim Montes, Chairperson

Brooklyn District Citizens Advocacy Panel

Attachments: *

Letter by Panel member Mihovich regarding Public Forums

Letter by Panel member Greenberg regarding EITC review

Schedule R Final Proposal

Proposal regarding E-File Incentives

* All attachments are available upon request.

4/14/00