Taxpayer Advocacy Panel
Area 2 Committee Face to Face
Meeting Minutes
Thursday, April 29-30, 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
Robert McQuiston
Ernest Miller
Mary Jean Potenzone
Donald Thomas
Andrew Feng
Connie Sharpe
Erica Webber

Absent
Ann Case
Louise McAulay
Robert Patterson

Guest(s) Present
None

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

Welcome and Roll Call
Mary Jean Potenzone and Nancy Ferree welcomed everyone to the meeting. They both thanked everyone for attending. Ferree congratulated Potenzone and Bob McQuiston for the two issues that went before the Joint Committee (JC).

Shawn Collins also welcomed everyone to the meeting as well. She informed the committee that she plans to attend all face to face meetings this year and TAP is also going to attend all Tax Forums. She thanked everyone for the volunteerism. Collins shared that Gary Isowitz was on Regis and Kelly and gave a plug for TAP. She let everyone know that as of today, we have 400 final applications and 600 draft applications. We are hoping to get those finalized before tomorrow.
Marianne Ayala introduced herself to the group and welcomed all new members.

Potenzone thanked McQuiston for working hard on getting those issues processed and elevated.

Joint Committee Call
Potenzone shared that there were four Project Committee Issues approved, eight for Area 7, two for Area 2, one Area 5 and one for Area 1. The 2009 Annual Report is going well, there will be a draft released by the end of the month. Everyone needs to get there bio’s on TAPSpace along with a picture. The strategic planning committee has created a Strength, Weakness, Opportunities and Threats (SWOT) survey and would like everyone to complete the survey and submit it. The deadline to submit is May 17th.

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

Elevated Issues
Ready to Elevate
Issue 16721 (5915)—Request to speak to a Specific IRS employee—this issue ready to be elevated to the JC. Frances Johnson informed that this issue was originally dropped because of the phone tree that the IRS uses. Johnson recommends the IRS add something to their website explaining to the taxpayers that they cannot speak to the same employee each time they call back about the same issue. The committee discussed this issue and agreed by consensus to elevate to the JC with some adjustment to the proposed solution with the wording the committee would like to see on the website.

Issue 16750 (5505)—Failure to File Penalty Abatement Process—this issue is ready to be elevated to the JC. Donald Thomas gave the background on this issue. Thomas and his subcommittee propose that the IRS amend the procedures for penalty abatement if the return was filed timely, but processed by the IRS late. The proposal is to not only waive the penalty, but also correct the record. The committee agreed by consensus to elevate to the JC.

Status of Elevated Issues
TAP ID 16745, Taxpayer Copy of Lien Release & TAP ID 16751, Telephone Calls to Taxpayers for Field Examinations – Ayala informed everyone that these issues were accepted by the JC and it has been elevated to the IRS for Consideration.

IRS Response 209-5359, IRS Correspondence Reply Envelope – Ayala informed everyone that a decision was needed for the 2009 Annual Report to be completed, after discussing this with the subcommittee that worked this issue and the TAP National Office staff, this issue will be labeled as “Under IRS Consideration”. Ayala advised everyone that we will continue to follow up on this issue.

Thomas shared his concern about not getting implementation dates from IRS when they accept an issue. Collins informed that TAP is in the final stages of getting that done through the Program Owners. She also shared that we are going to have notifications built into our database for the analyst to follow-up.

Exam Presentation
Patti Boles and Michael Porter from the local IRS office here in Charlotte, NC gave an overview of the exam process within the IRS. Porter explained the different exams that taxpayers receive and he explained the process if a taxpayer do not agree with the outcome of the exam.

Porter informed that Publication 1, Publication 3948, and/or publication 556 are publications sent to taxpayers that explain the exam process.

Frequent exams that come through the exam office in Charlotte are taxpayer claims and TAS cases.

Boles shared that the biggest problem for her office is getting the records in a timely manner. She also discussed correspondence audits.

Boles spoke on the changes the IRS is trying to do to help work correspondence audits that take place in the Campuses.

TAP Space Presentation
Ayala gave the committee a TAP Space presentation to help members navigate the website effectively. She also let everyone know that the TAP Staff is currently making recommendations to develop a new TAP Space, but it will take time to complete.

Taxpayer Advocate Service (TAS)
Tina Juncewicz gave an overview on TAS. TAS is an independent organization within the IRS. Their mission is to help taxpayers resolve problems with the IRS and recommend changes to prevent the problems. Juncewicz discussed the leadership within TAS and their structure. She dispersed handouts for her presentation.

Juncewicz discussed TAS criteria there is economic and systemic criteria. Some issues facing economic criteria include taxpayers suffering economic harm, facing adverse IRS action, suffering irreparable injury and will incur significant cost. Some issues facing systemic criteria include significant delays past normal processing, no response by promise date and systemic or procedural failure.

Systemic Advocacy is a division that falls under TAS. They work issues that affect multiple taxpayers. This database for Systemic Advocacy (SAMS) is for taxpayers, practitioners, academic, research, and professional organizations. There was discussion on the difference between what SAMS does and what the panel does.

Juncewicz discussed some of the most serious problems that were in the NTA’s 2009 Annual Report. She stated if anyone want more information on the Annual Report to Congress visit www.irs.gov/advocate.

Electronic Tax Administration Advisory Committee (ETACC) Presentation
Mard Steber a panel member from the ETAAC, gave a presentation about ETAAC. ETACC was brought into existence is 1998. Their primary duty is to provide feedback to the IRS on E-issues. They focus on researching, analyzing and making recommendations on anything electronic.

ETAAC is an advisory committee and the members are selected through an application process with a three-year voluntary commitment. They determine their issues through members, group outreach and interaction, contacts, IRS guidance or suggestions, other organizations and industry issues.

ETACC have been around for about 12 years. Steber shared that over the last years that the e-File mandate, modernized e-File, CADE, data strategy including National Data Standards, and confidence in electronic filing of tax returns have been significant projects. ETAAC focus in on e-File mandate, preparer oversight rules, e-File 80%goal and IRS e-strategy.

Screening Subcommittee’s Review of New Issues
Issue 16627—E-Services Password—Tax Professionals at Tax Forum voice their concerns about the problems surrounding e-services passwords expiring. Cited the passwords cannot be automatically reset.

The screening subcommittee reviewed this issue and recommends working this issue. They found the IRM information cited above should be included in the on-line tutorial; located on the password reset webpage.

The committee agreed by consensus to work this issue.

Issue 17095, IRS Letters—Taxpayer complains that an automatic notice generation continues to come after payment agreements have been made.

The screening subcommittee reviewed this issue and recommends working it. They feel that an automatic notice should be placed on hold if payment agreements have been arranged with the taxpayer.

The committee agreed by consensus to work this issue.

Issue 17153, Copy of Notice—Taxpayer states the IRS lacks the ability to re-send the original penalty and interest notices, but to continue to send the other penalty and interest notices.

The screening committee recommends not working this issue due to the IRS putting a system in place that they are rolling out in 2012.

The committee agreed not to work the issue by consensus.

Issue 17154, Hold on Computer Notices—Taxpayer complains about the IRS’s inability to place holds on interim notices.

The screening committee recommends working this issue. Based on the research an authorized user (Group Manager/Group Referral Coordinator) will have the ability to suspend systemic generation of the interim letters. The subcommittee recommends allowing the employee to suspend letter.

The committee had discussions on the recommendation and agreed by consensus to work the issue.

Issue 17155, Hedge Fund K-1 Forms—Taxpayer wants to know why interest income, dividend income, capital gains income and losses are on Line 11F and not on the appropriate lines on the K-1(Hedge Fund use of K-1).

The screening subcommittee reviewed this issue and determined this issue to too complex. The Tax Forms and Pubs Project Committee currently have a focus group for K-1 Forms schedule for their June face-to-face meeting. Since this issue will be reviewed by the Tax Forms and Pubs Project Committee in June, they will be advised of this concern and they will continue to work with the improvements of the K-1 Forms.

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

Issue 16117, E-File Attachments—The committee agreed by consensus to drop this issue because a taxpayer is able to e-file Schedule H electronically.

Review of Parking Lot Issues
Ayala suggest creating four standing subcommittees to work issues. The subcommittees are: Subcommittee A consists of Donald Thomas, Ed Johnson, Erica Webber, Louise McAulay and Mary Jean Potenzone. Subcommittee B consists of David Cain, Ray Boyle, Andrew Feng and Theresa Mathews. Subcommittee C consists of Bob McQuiston, Connie Sharpe, Pat Davis and Frances Johnson. Subcommittee D consists of Ann Case, Audrey Child-Tomie, Bob Patterson, Ernest Miller and Dick Grezbinski.

Ayala also advises everyone to work at a pace that the subcommittee agrees to. They may work one issue at a time or multiple issues at a time. It is up to the subcommittee.

The Committee agreed by consensus to Ayala’s standing subcommittee suggestion.

Shawn expressed her opinion on the enthusiasm to work issues, but she does not want the committee to be hung up on the number of issues. She expresses her desire of quality or quantity.

4/30/2010

Welcome/Announce
Mary Jean Potenzone opened the meeting and welcomed everyone back. She went over the schedule for this morning’s agenda.

Active Issue Subcommittees
Subcommittee A—
Issue 16723, Single Member LLC Filing Schedule C—Potenzone reported that Ed Johnson had researched this issues and determined that an LLC must file Form 8823 on which you must describe the structure of the LLC. The Form SS-4 has a blank space in which to fill in the number of members. The entire system of Forms has been redesigned and activated this year.

The subcommittee recommends that the IRS create a Publication for LLC's with information on the website.

Since the redesign of the forms answers the taxpayer's question submitted to TAP, it was recommended that a letter be sent to the taxpayer that his/her issue has been resolved by the change in the Forms

Issue 16782, ID Theft – IRS Taking A Long Time to Investigate—Issue too vague to specify as an Issue. Recommended that we go back to the taxpayer for facts and to define the actual issue.

Issue 16627 - Website Password
Erika Webber will work up language with Donald. We want to add a security question to recover password, as the banks, vendors etc have on their websites. It takes too long to get a new password to get into your account if you have lost your password.

Issue 17095 - Notice Suppressions – Mary Jean will work this issue conferring with Team B, which is working a similar issue.

Issue 16726 - Erika Webber is handling this Issue. It deals with the issue of phone numbers on Form W-2. No phone number for the issuer of the W-2 is required on the Form under the instructions. Other Forms (e.g., 1099, 1098 etc) require the issuer's phone number. By requiringthe phone number on the W-2 would allow an employee ready access to the issuer for corrections etc. In addition, we have inconsistent treatment among the same reporting informational returns.

Recommend: Amend the Form W-2 and its instructions. Team A will draft the language needed. Donald Thomas will work this issue.

Subcommittee B—
Issue 16792, Underpayment Penalty with Stimulus—Ray Boyle is the lead on this. Boyle reported that they believe that this is a resolved issue due to passage of time, it was in the parking lot too long and with the end of tax year and stimulus it may be recommended not to work. There is still some research to clarify issue statement as Team confused over 2008 or 2009 tax year.

Issue 16780, VITA—Dave Cain is lead on this. This was a combined issue, but the team discussed only pursuing the old 5612. Dave will do follow up with his VITA contacts and explore the Link and Learn problems.

Issue 16781, Look up Preparer information—Theresa Mathews is lead on this. The team discussed that enrolled agent aspect is already happening with the IRS, but the team will look at whether the IRS might also link to State CPA and State Bar Association sites for tax preparer information via state authorities.

Issue 17154, Interim Notice Holds—Andrew Feng is lead on this. This issue is similar to many others and additional clarification and insight was available at the meeting from Tina Juncewicz.
The staff is going to due more research.

Subcommittee C—Bob McQuiston reported on the following issues:
Issue 16721 "Request to Speak to Specific IRS Employees" (5915): Team C finalized the draft of Joint Committee Issue Referral Form for this issue, for forwarding to the Joint Committee.

Issue 16783 "Deletion of Social Security Numbers" (5643): Team C discussed this issue and will draft a Joint Committee Issue Referral Form, hopefully in time to be acted on at next month's meeting.

Issue 16716 "Correspondence Audits" (5902): Team C considers this an exceedingly important issue and will promptly consult with Tom Walker, Vice-Chair of TAP, to determine whether moving it forward in the traditional mannerwill be consistent with the current view of the Joint Committee policy since it hasalready discussed the need for TAP to take a position with respect to correspondence audit practices. If Tom gives the green light, Team C will immediately begin drafting a Joint Committee Issue Referral Form, using the facts ofthe alimonyaudits that were broughtto itsattention in anoutreach last year as an example of practices that should be changed.

Issue16784" Notice Errors" (5816): Team C has asked the analyst to determine whether the audit in question was a correspondence audit. If it was, this issue will be combined with Issue 16716. If not, additional facts will be obtained and the issue will be worked.

Subcommittee D—Ernest Miller reported there are only two members of Team D present. Since most of the members of Team D are absent, they would have to be contacted and brief on the new procedures before we can decide the best way to proceed with these issues. Doing their discussion Audrey Child-Tomie and Miller decided:

Issue # 16753, Receiving Forms After E-Filing—The subcommittee would need some someone who where being reference by the phase "They expressed frustration" and we would do some research to what is the criteria for receiving VITA assistance.

Issue # 17151, Kansas City Special IRS Group—The subcommittee will do some research to find out if their such a group, if so find out there function and find out if the are referenced any place for public notice.

Issue # 16785, Figures for consent to Assess (Letter 2626C)—The subcommittee would have to find out if the original notice and consent letter come from the same place. They also want to know if they are we working with more than one department and if the amount owed can be included on the consent form so that the taxpayer would have a record of how much they consented to for payment.

Issue # 16718, Acknowledgement of Response of CP2000—The subcommittee will discuss this issue with Team C to determine if it can be combined with a issue that they are working.

In closing Miller stated that the other Team members would need to be notified of the new procedures and a teleconference set-up to discuss these issues so everyone will all be on the same page.

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.

Outreach
There was not enough time to discuss outreach. Ayala informed everyone that the outreach report will be on TAP Space.

Public Input
None

Closing Remarks
Potenzone thanked everyone for attending the meeting. She felt that Area 2 had a very productive meeting and she really appreciated everyone’s hard work.

The next meeting is a scheduled May 19, 2010, via conference call.

Certification: These minutes were approved by the TAP Area 2 committee, by consensus, ­­ June 16, 2010.