Area 4 Committee Meeting Minutes
Tuesday, March 16, 2010
Teleconference 1:00 CST

Designated Federal Official

• Martin, Betty Nashville, TN Designated Federal Official

Committee Members Present

• Adams-Dodds, Carolyn Detroit, MI Member
• Akbar, Sandra Chicago, IL Member
• Kosanovich, Matt Columbus, OH Member
• Mackie, Wayne Frankenmuth, MI Member
• Martyniuk, Lev Cincinnati, OH Member
• Monnier, David Indianapolis, IN Member
• Mull, Bob Ann Arbor, MI Member
• Oetken, Todd Louisville, KY Vice Chair
• Rhyan, Joyce Cleveland, OH Member
• Spiotto, Ann Lincolnwood, IL Chair
• Taylor, Rita Cincinnati, OH Member
• Vanderver, Stephen Evansville, IN Member
• Werner, Mary Jo La Crosse, WI Member
• Young, Marilyn Nashville, TN Member

Committee Members Absent

• Buschmann, Ray Lake Forest, IL Member
• Granger, Jackie West Bend, WI Member
• Turner, Dianne Knoxville, TN Member
• Wingard, Kelly Decatur, IL Member

TAP Staff

• Block, Roy Milwaukee, WI Manager
• Smiley, Ellen Milwaukee, WI Analyst
• Robb, Patti Milwaukee, WI Analyst
• Gabriel, Lisa Milwaukee, WI Analyst

Welcome/Roll Call/Review Agenda (Spiotto)
Quorum met.

Area 4 Chair Report (Spiotto)
The Area 4 face-to-face meeting will be April 22 -24, 2010 staring at 1 pm on Thursday, April 22 and ending 12 noon on Saturday, April 24. The agenda for the face-to-face meeting is a work in progress, but the main focus of the meeting is to work on issues to the point where they are ready for Quality Review. Carolyn Adams-Dodds requested the Correspondence Audit issue be added to the agenda.

Ann Spiotto has made dinner reservations for both evenings during the face-to-face in Chicago. Reservations will be for 6:30 pm. If you know that you will not be able to join the group for dinner, please let Spiotto know in order to provide a more accurate count to the restaurant.

There will be no Area 4 teleconference call on Tuesday, April 20, 2010.

Spiotto provided and overview of the Joint Committee Meeting and advised the minutes are posted on TAPSpace. The 2010 TAP charter was approved. The only change to the charter is Project Committees issues now need to be reviewed by Joint Committee.

Sabby Jonathan is requesting panel members to add their picture to the bios on TAPSpace.

Jonathon drafted a response to an IRS Announcement 2010-9 proposing new reporting requirements for business taxpayers regarding uncertain tax positions. He has received approval from the Joint Committee to respond. IRS allows responses before any implementations. The response was sent to IRS and is posted on TAPSpace.

Recruitment for TAP Panel Members has begun and the applications will be accepted from March 15, 2010 through April 30, 2010. Area 4 is recruiting in Illinois and Michigan. In addition, we need participation from Area 4 panel members for the interview process. If interested email Ellen Smiley.

Spiotto noted since the Austin tragedy, there is increased security in the TAC offices.

DFO Report
Betty Martin thanked everyone for attending the conference calls. Their TAS office continues to be inundated with inventory and her case advocates tell her they have reached an all time high dealing with taxpayers with financial problems.

New and Parking Lot Issues Report (Werner)

Issue 16668 – IRS needs to be ready to conduct business
Description: Taxpayer has been to a Taxpayer Assistance Center (TAC) on two different occasions and both times the 2009 1040 instructions were not available.
Recommendation: New Issue Committee recommended this be moved up to Active, Low Priority. TAC offices have form bins in each office, but this is a customer service issue.
ACTIVE LOW PRIORITY
Subcommittee: Ann Spiotto and Dave Monnier

Issue 16671 – Call Center options
Description: Field offices should answer phones rather than return messages in 24-48 hours. Call centers need to give options such as go to a field office.
Recommendation: New Issue Committee recommended this be separated into two issues. The First issue, requesting IRS employees answer the phone rather than return messages in 24 – 48 hours after the call has been placed, should be dropped. The Second issue, involved requesting additional options on the toll-free phone message should be moved up to Active, Low Priority. One New Issue Committee member suggested that the IRS message on the answering service call center could have additional language to include: suggesting that the individual taxpayer go to the TAC office nearest them.
First issue – ITEM DROPPED
Second Issue - ACTIVE LOW PRIORITY

Issue 16696 – Expiration Date on Refund Checks
Description: A taxpayer called and suggested that an expiration date be placed on refund checks. She works at a bank and is hesitant to cash the check because it is dated 2007. She fears the check could have been reported lost or stolen and already replaced.
Recommendation: New Issue Committee recommended this issue be dropped. There currently is language on the check that says “void after one year”.
ITEM DROPPED

Issue 16702 – VITA Sites
Description: Train VITA Volunteers to complete Offers in Compromise (OIC) for taxpayers.
Recommendations: New Issue Committee recommended that this be dropped. Offers in Compromise are a complex area, and this would be an undue hardship on VITA Volunteers.
ITEM DROPPED

Issue 16703 – Streamline Offer in Compromise (OIC)
Description: Have a streamlined Offer in Compromise (OIC) process, if the taxpayer is over 65 years old and has no assets.
Recommendations: New Issue Committee recommended this be moved to Active, Medium priority. With the recession and high unemployment, it is anticipated that more people will be applying for offers in compromise. In addition, streamlining the offer in compromise process will reduce costs for IRS.
ACTIVE MEDIUM PIRORITY
Subcommittee: Mary Jo Werner, Wayne Mackie, and Matt Kosanovich (lead)

Issue 16704 – User fee for filing amended returns
Description: Charge a user fee for filing an amended return if the original return was filed before February 15th. People file too early, before receiving all income statements. Taxpayers should receive all income documents by February 15th.
Recommendations: New Issue Committee recommended moving this issue to Active, Low Priority. After discussion during teleconference meeting consensus was to drop the issue.
ITEM DROPPED

Issue 16705 – Locating IRS employees by badge number or employee number
Description: There is no easy way to track an IRS employee by their badge or employee number. The employee always provides the badge number but it cannot be tracked. Either provide easy access to locate employees by badge number or have employees use their SEID which can be easily located on our Outlook system.
Recommendations: New Issue Committee recommending Drop. Area 2 is already working this exact same issue.
ITEM DROPPED

Issue 16708 – Assistor did not know new Tax Law
Description: Caller waited 35 minutes to have a question answered about the new tax laws regarding donations for Haiti. Caller suggests that the IRS employees be more informed of new laws.
Recommendations: New Issue Committee recommended dropping this issue. A short discussion occurred regarding providing more education for IRS employees, but the Haiti issue was one that the Legislature provided information on after the first of the year. This relates to customer service. New Issue Committee noted that a number of TAP issues are related to customer service, as a general theme.
ITEM DROPPED

Issue 16734 – Tax preparers who prepare returns incorrectly
Description: A tax preparer is worried about the IRS coming to his home, posing as a phony taxpayer, wanting their tax return completed. He doesn’t prepare any tax returns anymore. In reading the letter, the IRS’ style of writing is a little “strong arm tactic” oriented, which may not be the best approach. The IRS is trying to find the tax preparers who prepare returns incorrectly, whether intentionally or unintentionally. Is there a way to sort out the sample tax preparer group and find out the ones that prepare incorrect returns, as opposed to using a sample of the entire tax preparer group?
Recommendations: New Issue Committee recommended moving this issue up to Active, Low priority. Currently, there is a new requirement for tax year 2010 that tax preparers who prepare more than 10 tax returns for pay are required to obtain continuing education. However, this issue is taking a closer look at the competency of the preparers in general.
PARKING LOT. Review at the face to face meeting.

Issue 16795 – Where did all the local telephone service go to?
Description: A frequent caller to IRS TAP service indicates he would like to see IRS telephone service returned to the control of the local IRS offices across the country. He remembers calling the IRS toll free line and being able speak to a local employee who knew what the issues were all about and could deliver great customer service.
Recommendations: New Issue Committee recommended this be moved up to Active, Low priority.
PARKING LOT. Review at the face to face meeting.

Jackie Granger requested all issues raised about the toll-free service be placed in the PARKING LOT and review them all every six months or once a year. The committee agreed.

Issue 16849 – VITA Locations
Description: On the IRS website, to get a VITA location you have to call the 1-800-829-1040 phone number. When the number is called, the main menu does NOT mention VITA at all. The person then directed my call to get an answer. Via a recording, I was informed that the wait time was 7 to 10 minutes. Is there an easier way to find all VITA location in Wisconsin? Recommend that IRS put VITA locations on-line. (Another item that would not tie up the IRS 1040 phone lines)
Recommendations: New Issue Committee recommended that this be dropped. The IRS website has been updated since this issue came in – 19 states have been added; seems to be a work in process. There is a VITA site number to call 1-800-906-9887 per information in IRS Tax Tips 2010-41 dated 3-1-2010, but it is not yet listed on www.irs.gov. During discussion, Steve Vanderver advised the VITA site number is now listed on www.irs.gov.
PARKING LOT
ACTION ITEM: Smiley will check the status before the face-to-face meeting and if there is no progress issue may be worked.

Issue 16850 – Provide a labeled mailing envelope for taxpayers
Description: In preparing mailing labels for our Tax-Aide volunteers to provide a labeled mailing envelope for the taxpayer, I was checking the various address. Per the 1040 booklet, back page, if you live in Indiana you submit paper returns to the Fresno, CA Service Center. However, if there is a balance due, in Tax-Wise the 1040V shows the Cincinnati address for payment. If it is an E-File return, this is not a problem. However, for a paper return, the instructions in the 1040 book say to include your payment with the 1040V and mail the return. I tried a Texas residence, the back of the booklet says mail return to Austin Service Center, yet the 1040V (In Tax-Wise) prints the Charlotte, NC address. As I understand, the 1040V address is usually a "drop-box" rather than a processing center. The differences in the addresses for paper returns could be confusing to the taxpayer when he/she is ready to file and send the return. What happens if a return shows up at a drop box address? Is it then forwarded to the proper Service Center? This could cause delays in processing the return. Obviously, it's too late to change the 1040 series packages.
Recommendations: New Issue Committee recommended this issue be dropped. IRS provides this information already.
PARKING LOT
ACTION ITEM: Smiley to research what actually happens to returns when sent to the incorrect address.

Issue 16851 – Deductions passed by the Federal Government
Description: IRS should inform the practitioners in the IRS new releases they issue that all deductions passed by the federal government may not be deductible by local state taxing bodies.
Recommendations: New Issue Committee recommended that this issue be moved up to Active, Low priority.
ACTIVE LOW PRIOIRITY
Subcommittee: Mary Jo Werner (lead), Lev Martyniuk

Issue 16870 – Allowance to be listed as POA on Form 2848
Description: If an un-enrolled return preparer passes the proposed test, then shouldn't they be allowed to be listed as POA on Form 2848.
Recommendations: New Issue Committee recommended this be moved up to Active, Medium priority.
ACTIVE MEDIUM PRIORITY – Combined this with Issue 16871
Subcommittee: Joyce Rhyan, Rita Taylor, Bob Mull (lead)

Issue 16871 – Allowance to use e-services
Description: If an un-enrolled return preparer passes the proposed test, then shouldn't they be allowed to use e-services getting all the products a "tax professional" receives.
Recommendations: New Issue Committee recommended this be moved up to Active, Medium priority.
Combined with Issue 16870

Issue 16885 – Mailing of Publication 15
Description: Part 1: In Publication 15, Employer's Supplemental Tax Guide (Circular E) has 19 pages of tables. Very few employers use this paper publication as most have payroll services that use software. IRS should eliminate the 19 pages of tables on the printed publication. Part 2: If those 19 pages can be eliminated then perhaps Publication 15 and Publication 15a can be combined as one Publication, as some of the pages are also duplicate information.
Recommendations: NIC recommended that this be moved to Active, High priority.
ACTIVE HIGH PRIORITY
ACTION ITEM: Run it by Forms and Pubs to get feedback. If they say work it, we will at the face to face.
Subcommittee: Rita Taylor, Dave Monnier

Issue Discussion – Active Issues

Issue 16732 (aka 5569) – VITA/TCE Grant Applications (Vanderver)
The subcommittee got together and decided it is a non issue, and recommend dropping.
ITEM DROPPED

Issue 16730 (aka 5638) – Notices (Taylor) –
On hold until face-to-face meeting

Issue 16728 (aka 5658) – Understanding Taxes (Turner) –
On hold until face-to-face meeting

Issue 16727 (aka 5859) – Correspondence Audits (Adams-Dodds) –
Meeting weekly on Saturday mornings

Issue 16936 – Form 8925, Report of Employer – Owned Life Insurance Contracts (Turner) –
The information is available; it is a matter of the taxpayer reading it.
ITEM DROPPED

Issue 16933 – Tax Practitioner Hotline Availability (Vanderver) –
On hold until face-to-face meeting

Approved Issue for Elevation

• Issue 16731, First Time Event Penalty Abatement (Martyniuk//Werner) – Issue will be finish at the face-to-face meeting.

Status of Issues Referred to Forms and Pubs

• Issue 5260 / 5664, Form 8863 Education Credits and Forms – Issue 5260 was combined with Forms and Pubs (F&P) Issue 5664 and many of the items from Issue 5664 accepted by F&P, however F&P did not accept specific points from Issue 5260.
• Issue 5562, MFJ vs. MFS List of Items Affected – Taylor noted Forms and Pubs requested additional information which she sent to Smiley for Forms and Pubs consideration.

Status of Elevated Issues

• Issue 4945, Tax Law Access – IRS Rejected. Area 4 agreed to close as rejected.
• Issue 5471, IRS Identity Theft Advice Clarification – IRS missed the point and Ray Buschmann wrote a response to IRS. Approved to forward Response back to IRS.

Outreach
Joint Committee is putting more emphasis on outreach.

Project Committee Highlights

Communications – Rhyan is working on the membership directory.

VITA – VITA has two subcommittees and they are looking at quality returns and asset building.

Forms and Pubs/MLI – Is getting ready to do a Focus Group with the program owner. The committee members are waiting on how the new process will work out.

Office Updates
The director will be attending the face-to-face meeting in Chicago.
A new secretary has been hired. Her name is Annie Haywood.
Travel arrangements have been sent to each panel member for the meeting in Chicago and if there is anyone who has not received their hotel or airline arrangements please let Lisa Gabriel know.

Meeting Adjourned