Notes From the Federal Tax Liaison Meeting
Submitted on Monday May 21, 2007

The meeting was held at the TSCPA Headquarters in Nashville beginning at 8:00 A.M. Attending were representatives from the IRS, TSCPA, TNSEA, Association of Accountants and TN-NATP. Enrolled Agents attending: Jean Locke, Keith Stanton and Bruce Thomas.

 

The IRS was complimented on the uneventful and therefore successful filing season. 76.7 million e-filed returns were accepted, an 8.9% increase over last year.

Closing the "Tax Gap" continues to be the top priority for the IRS. The document matching program will be expanded.

FREE PHONE FORUM FOR TAX PROFESSIONALS has been deemed a success. The IRS invites you to attend "UPDATES ON THE COMPLIANCE DIVISION OF THE IRS" on June 14, 2007; 11:00 A.M. to 12:00 CDT. Glenn Henderson, Director of Examination and Ellen Dolby Director of Collecion will discuss happenings in their respective divisions. Go to the website (www.attevent.com) access code 773924 to register.

ISSUE MANAGEMENT RESOLUTION SYSTEM (IMRS) is also said to be working well and is available on IRS.GOV.

The Automated Collection System (ACS) located in Nashville is expanding. The inventory of ACS is managed nationally and most of the calls handled by Nashville are not Tennessee taxpayers. The system does not accommodate call backs to the same employee (as you well know). Large cases ($100,000.00) are worked by the Brookhaven ACS site. Beginning 10-01-07 they will be testing a "hybrid group" to work more complicated cases such as payment tracers and complicated adjustement cases.

The IRS is testing consolidation of data bases so when a taxpayers account is accessed all data from the numerous IRS sources will be available. Hopefully, this will reduce the necessity of requesting the same information numerous times because it is not on the employee's data base.

Increased hiring is scheduled for the Practitioner Priority Line.

In 2008 IRS intends to hire 1500 additional Revenue Agents in addition to attrition hiring. Tennessee hires have not been determined.

There will be a National Research Project (formerly know as TCMP) in 2008 involving 1040 returns, number is unknown at this time.

Tax Compliance Officers will "circuit ride" to IRS offices that are not currently staffed with Tax Compliance Officers. IRS plans presence in these offices on a monthly basis.

EXAMINATION TO BE CONDUCTED AT THE TAXPAYERS PLACE OF BUSINESS was emphasized. This has been in the IRS Manual for years. There are new instructions/requirements that are causing concern. EA will need to try to convince the examiner that the "place of business" is not the most efficient place to conduct the examination.

PRIVATE DEBT COLLECTION will be expanded and has been a success according to the IRS. We get a different assessment from the media.

Previously, when a corporate offer in compromise was accepted by the IRS the trust fund recovery penalty against the responsible employee was abated. Not so anymore according to IRS counsel.

TAXPAYER ADVOCATE in Nashville works a National inventory containing few Tennessee taxpayers.

THE OFFICE OF APPEALS is trying to reduce the time it takes to resolve cases. The goal is to relsove the case at the first contact.

Prepared by Bruce R. Thomas, Vice President, TNSEA 615-781-6083 or cell 615-479-2703.