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

Designated Federal Official
Tina Juncewicz, DFO

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

Absent
Ann Case
Andrew Feng
Connie Sharpe
Erica Webber

Guest(s) Present
None

Staff
Shawn Collins, TAP Director
Nancy Ferree, TAP Program Manager
Marianne Ayala, TAP Program Analyst
Donna Powers, TAP Program Analyst18
Anita Fields, TAP Secretary

Welcome and Roll Call
Mary Jean Potenzone welcomed everyone to the meeting. She stated she received feedback from last month’s call. Potenzone mentioned points of courtesy for all to use while on the conference call. Please state your name, please do not talk over others and do not work issues on the subcommittee calls.

Joint Committee Call
Potenzone highlighted some points from the Joint Committee (JC) call.
The TAP Charter is officially approved; one major change is that the IRS and TAP have agreed that all communication with the IRS will flow through the TAP staff that supports the committee. All issues will go through the JC to include Project Committee recommendations.

Shawn added that those changes are a result of the General Legal Services. They indicated to us that by the Project Committees going directly to the IRS was a violation of FACA rules.

The strategic task force subcommittee is officially begun its work. This committee was formed to ensure that the Program is continually moving forward. They will work on finding out what is working and what is not.

Potenzone asked that everyone place his/her picture and bio on TAPSpace, it is very important.

Collins acknowledged that she appreciates the work that everyone is doing. She also announced that she was selected as the permanent TAP Director.

Tina Juncewicz announced that the Stakeholder Liaison has asked for a member or members to participate on a panel presentation at the Carolina Tax Professional Forum in Charlotte, NC. She will send an email the members in North and South Carolina.

Review of Meeting Minutes
The committee approved February meeting minutes by consensus.

Area 2 Guidelines
Marianne Ayala reminded everyone that the committee came to an agreement that there will not be more than four active issues and the screening committee would review no more that five new issues at one time. During the face-to-face meeting, we will discuss how to manage the issues in the parking lot, which is being aged.

Another thing that was agreed upon last year is that the committee would limit reply all on TAP Space. There are occasions that members feel they are receiving emails that do not pertain to them. Ayala will conduct a live presentation on TAPSpace to ensure that all members know how to use the site.

Donald Thomas suggested using a discussion thread on TAPSpace for the Screening Committee report. Ayala stated that she will have a thread created for the face-to-face meeting to show the members how to use the thread if do not already know how.

Screening Subcommittee’s Review of New Issues
Issue 16716 (5902), Alimony Items—this issue is a carry-over from last month. Bob McQuiston contacted the taxpayer and it found that the issue was not the same as the original comments on the research report. This issue did not involve two parties of which one or both improperly reported alimony income. Instead, this issue involved a tax deduction that was incorrectly applied to the tax return of the audited taxpayer

The screening subcommittee recommends not working this issue based on the new information.

The committee discussed this issue and disagreed with the screening committee’s recommendation.

The committee agreed by consensus to work this issue and placed in the parking lot.

Issue 16717 (5903), E-Filing Attachments—Thomas reported there has been a great deal of input on the issue and based on remarks made by members during the last full committee call a paper explanation appears to be the best way the IRS handles these issues. They explained that during the tax preparation interview process their software does prompt tax preparers to note explanations of awkward tax information and (JHTS) must still print and mail these tax returns to the IRS with an explanation for the awkward information. There is another advocacy group, which addresses such issues. The Electronic Tax Administration Panel (ETA). If TAP pursues this matter, it would be best to contact the ETA first, get their input, and not duplicate an effort.

David Cain asked why we are asking one software company when there are dozens out there. Some of them are more comprehensive than others, so you may get 10 different answers from 10 different software companies. The IRS has a list of what can be filed electronically, so why are we not working with the IRS list instead of what the software companies may or may not have?

Juncewicz confirmed that the IRS establishes the rule for what can be filed electronically. Publication 1345 is the handbook for e-filers. It is found on the IRS website.

The screening subcommittee recommends putting this issue on hold pending input from ETA Committee.

Issue 17150 (5906), Contact Before Assessment—Taxpayer submits answers to IRS for questions cited on ‘paper exam’ notice. The Taxpayer furnishes incomplete data and the IRS moves to a notice of assessment without contacting the taxpayer first.

The screening subcommittee reviewed this issue and the taxpayer does have some basis here after reading Publication 556. However, the fact that they failed to provide the requested documentation comes into play. In an audit or exam case (which was handled via mail), if the taxpayer still do not agree to the assessment can request ‘fast track mediation’.

The screening committee recommends not working this issue due to the IRS following procedures.

The committee disagreed with the screening committees’ recommendation. The committee agreed by consensus to combine Issues 17150 and 16716. These issues will be placed in the parking lot.

Issue 17151 (5919), Kansas City Special IRS Group—Taxpayer complains, there is a special collection group operating in Kansas City area with lack of bills or notices to taxpayer.

The screening subcommittee reviewed this issue, and it was discovered that the taxpayer was not aware of a past due owed on their 2007 tax return, and the 2008 return was used to satisfy that amount. this ignorance, along with failing to address prior notices, later resulted in IRS revenue officer tax collection.

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

The committee had discussions on the recommendation and feel that there needs to be more research.

The committee agreed by consensus to place this issue in the parking lot pending further review.

Issue 17152 (5920), Schedule H, e Filing— Taxpayer inquired about electronic filing of the Schedule H.

The screening subcommittee reviewed this issue and determined the Schedule H can be filed electronically.

The Screening committee recommends not working this issue.

The committee agreed by consensus to accept the screening committee recommendations.

Active Issue Subcommittees
Issue 16842 (5455), 3rd Party Designee Authorization—McQuiston stated he has been talking about this issue for months. This is the issue the committee approved and sent to the Joint Committee. The Joint Committee did not send to the IRS and McQuiston has asked why it did not go the IRS.

Potenzone stated that she would send a letter to Tom Walker and Sabby Jonathan.
Ayala stated that Nancy Ferree has feedback, but stepped out. Ferree will send out via an email.

Issue 16750 (5505), Failure to File (FTF) Penalty Abatement Process—Thomas reported, he wrote the first proposal for the taxpayer to go through Appeals. Thomas found that since there is no money involved, the taxpayer could not use the Appeals process. Thomas drafted a second proposal for the taxpayer to go back to customer service of IRS, explain the situation, and provide proof to validate the claim. Thomas sent this to the Quality Review and just waiting on their response. Issue 16750 will be available for members next month.

Issue 16748 (5552)—Request to Speak to a Specific IRS Employee—Frances Johnson reported the original issue, stated that taxpayers were trying to get to the IRS personnel they originally spoke with when they called customer service. Logistically this is impossible due to the phone tree design. Johnson thought it was important for taxpayers to know why they cannot speak to the original IRS employee. She sent an addendum and it was given another number (5915). Johnson is currently working on Issue 5915.

Issue 16792 (5609), Underpayment Penalty Under the Recent Stimulus Initiative—Did not get a report on this issue because we ran out of time.

Issue 16753 (5615), Receiving forms After E-filing—Robert Patterson did not report on this issue ran out of time.

Issue 16749 (5661), Worthless Securities—Grzebinski reported that the subcommittee is dropping this issue because they have nothing to work with.

Outreach
No outreach reported.

Public Input
None

Closing Remarks
Potenzone thanked everyone for attending the meeting. She stated that she look forward to seeing everyone in Charlotte.

The next meeting is a scheduled face-to-face meeting April 29-30, 2010 in Charlotte, NC.