Taxpayer Advocacy Panel
Area 2 Committee
Meeting Minutes
Wednesday, February 17, 2010

Designated Federal Official
Nancy Ferree, Acting DFO

Attendance
Ann Case
Raymond Boyle
David Cain
Audrey Child-Tomie
Patricia Davis
Dick Grzebinski
Frances Johnson
Theresa Matthews
Louise McAulay
Robert McQuiston
Ernest Miller
Robert Patterson
Mary Jean Potenzone
Connie Sharpe
Donald Thomas
Erica Webber

Absent
Andrew Feng
Edward Johnson

Guest(s) Present
Roger Lees
Michael Silva
Russell Pinnillis

Staff
Donna Powers, TAP Program Analyst
Anita Fields, TAP Secretary

Welcome and Roll Call
Mary Jean Potenzone welcomed everyone to the meeting. She gave an overview of the Joint Committee meeting. Potenzone shared that the Annual Meeting is the week of 5 December 2010. The Joint Committee also discussed the new QR process. The Joint Committee will track all issues from inception to either a final determination or if accepted in whole or part, implementation.

Review of Meeting Minutes
The committee approved December and January meeting minutes by consensus.

Review of Elevated Issues
Issue 209-5359 IRS Correspondence Reply Envelope—The IRS responded they were unable to implement the suggestion TAP made immediately.

The committee discussed the IRS response and they decided by consensus to form a subcommittee consisting of Donald Thomas, Patricia Davis, Erica Webber and Connie Shape. They will prepare a list of questions and send them back to Brian Anderson the IRS signatory.

Screening Subcommittee’s Review of New Issues
Issue 16716 (5902), Alimony Items—this issue is a carry-over from last month. Bob McQuiston is going to provide updated information to the committee, to help decide how to proceed.

The screening subcommittee recommends putting this issue on hold until McQuiston speaks with the submitter to get more information.

Issue 16717 (5903), E-Filing Attachments—Thomas reported that he is still waiting on feedback information regarding, what can be added as attachments on an electronic file from Frances Johnson and the TAP Staff. Thomas stated if anyone has additional information to send it to him.

The screening subcommittee recommends putting this issue on hold until more research is complete.

Issue 16718 (5904), IRS Acknowledgement of Submissions—Taxpayer states that while responding to CP-2000 notices, the IRS does not always send an acknowledgement notice, Taxpayer suggests that IRS provide a rapid acknowledgement to responses of CP-2000 notices.

The Screening Committee reviewed this issue. They recommend working this issue and combining it with Issue 5916 because this issue shows the same similarity with posting errors.

Issue 16719 (5905), Matching Program for Security Sales—Taxpayer proposes the assessment not be made on F-1099-B omissions on the 1040, until the taxpayer has an opportunity to explain the discrepancy.

The screening subcommittee reviewed this issue. Upon researching the issue we found that in publication 550 on the sale of securities, it is quite clear the taxpayer has a duty to report information reported on the F.1099-B regardless of gain/loss or break-even. The taxpayer has a responsibility to reflect the basis of stock sales on the Schedule D.

The screening committee recommends not working this issue. They feel this is an isolated issue.

Issue 16720 (5911), E-File Services Shut-Down on Columbus Day—Tax practitioner cites IRS 10/11-12/2009 system shutdown caused problems for filing Form 4868 deadline.

The screening subcommittee reviewed this issue. The screening committee feels the taxpayer lacked the specific information for his issue. For the committee to fully evaluate this item, the committee would like the IRS analyst to re-contact the practitioner to provide correct information to evaluate the issue. The screening committee believes this may have been a mistake on their part and the taxpayer should be allowed an opportunity to clarify the issue. If information cannot be provided by the practitioner to support this claim, then the committee feels it would be best to drop and not work issue.

Issue 16721 (5915), Request to Speak to a Specific IRS Employee—The screening subcommittee recommends working this issue.

Issue 16722 (5916), Premature Assessments—TP states that while responding to notices, the IRS does not always send an acknowledgement notice or these notices responses are not posted timely, TP suggests that IRS provide a grace period before assessing accounts.

This issue was reviewed by the screening subcommittee. The subcommittee decided to work this issue and combine with issue 5904.

Issue 16723 (5917), Single Member LLC Filing—Filing Form SS-4 for SMLLC entities to clarity entity type to avoid future notices.

The screening subcommittee feels to address this issue correctly; they will need to see the specific guidance from IRS as to what type of entity a SMLLC is truly considered. Thomas stated that he has no problem framing this issue and taking it to the forms and publication committee for consideration. There was no contact information from taxpayer to follow-up.

The screening committee recommends working this issue.

Issue 16726 (5918), W-2 Telephone Number —Taxpayer recommends that the employer telephone numbers be place on W-2 to correct errors.

The screening committee reviewed this issue. The committee feels this is great suggestion and a highly workable one with a strong possibility of being adopted by the IRS. This problem is seen all the time in individual tax preparation, and an employer contact number on W-2s for individuals to have information corrected would be very helpful.

The screening committee recommends working this issue.

Issue 16636 (5918), ETFPS Tax Package—The screening committee recommends dropping this issue. McQuiston wants to re-introduce the issue. The TAP Staff, McQuiston and the Chair will have a teleconference to discuss.

The committee agreed by consensus to accept the screening committee recommendations for Issues 16716-16726.

Active Issue Subcommittees
Issue 16738 (5080), Taxpayers ability to View Accounts online—Thomas drafted a rebuttal statement to the IRS. The letter is to address specifics on being able to review estimated tax payments and balance due tax amounts. This is based on the earlier response last year on improved E-services for taxpayers.

The committee agreed by consensus to move issue forward.

Issue 16750 (5505), Failure to File (FTF) Penalty Abatement Process—Thomas reported, based on the information he gathered, he feels he needs to ponder on this for a little while longer before making a decision to drop the issue or write-up a recommendation. After some discussions, the subcommittee will continue to work this issue.

Issue 5552—Request to Speak to a Specific IRS Employee—Frances Johnson reported that she is currently working on this issue and has forwarded some information to Donald regarding the issue.

Issue 16745 (5554)—Release of lien/backup withholding—Dick Grzebinski reported the issue went to Area 2 quality review. He corrected what was noted.

The committee agreed by consensus to elevate to Joint Committee.

Issue 16742 (5455), 3rd Party Designee Authorization—McQuiston reported the committee suggested instead of a maximum of 12 months to not have expiration at all on the check box authority. McQuistion said that the issue went to Joint Committee. Joint Committee approved it and then it fell off the radar. McQuiston wants to know, did it go the IRS? If it did not, why and where is the issue now? He also wants to know what the committee needs to do to get it to the IRS.

Nancy Ferree informed that it was sent to the Joint Committee and the JC voted not to elevate and just place this issue in the TAP Annual Report.

Issue 16751 (5553), Telephone Calls from Tax Examiners—McQuiston reported that this issue is a recommendation that before an IRS agent call a taxpayer on the telephone to set up a field audit, there should be something in writing before hand so the taxpayer can be prepared. A Joint Committee referral form has been completed and it is posted to TAP Space.

The committee agreed by consensus to forward to Joint Committee.

Issue 16753 (5615), Receiving forms After E-filing—Robert Patterson has not made any progress on this issue yet. The subcommittee consists of Ann Case and Audrey Child-Tomie.

Issue 16752 (5485), Preparer Unable to discuss Return w/POA—McQuiston and his subcommittee has written up this issue. It has been through the area quality review and is ready to go to the Joint Committee Quality Review.

The committee agreed by consensus to forward to Joint Committee.

Issue 16749 (5661), Worthless Securities—Grzebinski reported that he is waiting to speak with someone in exams. This issue is still in a holding pattern until the committee can talk to a Subject Matter Expert.

Powers reported that she is actively looking for a Subject Matter Expert, but is having difficultly finding one.

Issue 16792 (5609), Underpayment Penalty Under Recent Stimulus Initiative—Under the recent stimulus initiative, taxpayers received, or will receive payments, that will effect their 2008 tax liability (a fact that needs to be checked). Most low-income folks set their withholding rate at the beginning of the year without regard to these payments.

Powers stated that during the annual meeting, the committee voted to drop this issue, but after the IG report, Thomas asked to re-introduce. The subcommittee consists of Potenzone, Davis, and Ernest Miller. Potenzone is the lead.

Review of Matrix & Issues
Donna Powers reviewed the Issue matrix with the committee. As of now, we have nine active issues with four being elevated. The committee should not work more than five active issues at one time. More than five active issues cause a strain on the panel members and the staff.

There was discussion on the amount of outreach that the members are doing and getting issues, but the committee does not have the work force to work more than five active issues at one time. Potenzone suggested members also doing research to help the staff move issues along.

Outreach
Powers reported last month was an excellent month for Area 2. There were 14 outreaches with a total audience of 343. However, Bob Patterson spoke with news stations and media. Patterson said nothing came of that, because the storm hit and he believes it got pushed back in the pile.

Public Input
None

Closing Remarks
Potenzone thanked everyone for attending the meeting. She also encouraged everyone to continue their outreach efforts. Potenzone also asked that members not send emails to everyone on the committee or reply to all unless it relates to them.

The next meeting is a scheduled teleconference on March 17, 2010 at 2:30pm EST.

Certification: the TAP Area 2 committee approved these minutes by consensus, on March 17, 2010.