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									       North Texas Representation Council Meeting Minutes
                       December 5, 2003

Cora Estep (IRS Compliance); Ron Fiedelman (TSCPA); Larry Jones (Bar); Patti
Logan (TSEA); Patty Marsh (IRS TEC);); Lloyd Thelemann (TAFTS); Mark
Kissell (TXNATP); Patricia Scott (TAFTS); Leonard Horton (IRS Appeals);
Joseph Brophy (TSCPA); Don Whitlock (IRS W&I Compliance Services); Gene
Moren (IRS TEC); Stephanie Frazee (IRS SB/SE ACS); Jeffery Eppler (IRS W&I
ACS); Audrey Morris (IRS Counsel); Gwen Dawson-Green (SB/SE
Communications Liaison)); Josh Ungerman (Bar)

John Agee (IRS SPEC); Gayvial James (IRS TAS); Mary Howard (IRS Appeals);
LG Brooks (TSEA); Laurel Cummings (IRS Local Taxpayer Advocate); Abbey
Garber (IRS Counsel);

Regeina Hall

The meeting began at 9:30 a.m. Larry Jones opened the meeting. The agenda
was reviewed and the meeting proceeded in accordance.

Jeffery Eppler, Filing and Payment Compliance Operations Manager and
Stephanie Frazee, Customer Service Analyst answered questions from the
Council on Wage and Investment (W&I) and Small Business Self Employed
(SB/SE) Automated Collection System (ACS). They also provided current
information on ACS. The questions and answers are attached.

Service Centers and Call Sites

ACS has become a virtual call center, with all ACS employees being eligible to
answer calls anywhere in the nation. National call routing provides equal service
to taxpayers by routing calls to the next available representative. This will allow
for a more effective use of our staffing and should allow sites to devote more time
to work on inventories. Local service will continue to be 8 am until 8 pm.

The Call Sites for Wage & Investment (W&I) are: Atlanta, Puerto Rico, Seattle,
Jacksonville, Austin, Fresno, Buffalo, and Kansas City. The Call Sites for Small
Business Self-Employed (SB/SE) are: Oakland, Philadelphia, Denver,
Brookhaven, Nashville, and Detroit. Puerto Rico handles calls for W& I and

As of January 2002 all ACS Service Center output has been directed to four (4)
service centers, instead of the previous ten (10) service centers. There are two
(2) W&I support service centers, Kansas City Service Center and Fresno Service

       North Texas Representation Council Meeting Minutes
                       December 5, 2003
Center and two (2) SB/SE service center support sites, Cincinnati Service Center
and Philadelphia Service Center.

The level of service for 2003 is 81 percent. Level of service is the number of
incoming calls that are handled before the taxpayer hangs up.

ACS now has specialized sites. There is no special telephone number to call,
the ACS employee enters the taxpayer’s taxpayer identification number (TIN) into
the system and the call is directed to the appropriate site.

ACS has specialized sites across the country. Installment agreements open in
ACS that have defaulted more than twice are routed to the Philadelphia Call Site.
ACS has assigned to the Buffalo Call Site all Nation-Wide WI cases with TDA
Total Module Balances greater than $100,000. The $100,000 total will not
include penalty and interest. The main Spanish line is in Puerto Rico. Austin and
Fresno also have Spanish lines. ACS is considering a Taxpayer Delinquency
Investigation (TDI) site. This site will handle issues relating to unfilled returns. If
a taxpayer calls in with a TDI indicator on his account, depending on the dollar
amount, the call will be routed to the TDI site.

Taxpayer Assistance Center Personnel completed ACS training November 30,
2003. The employees can release liens, input information, set up installment
agreements and send cases to be processed. They will eventually start working
ACS cases.

The Practitioner hotline should transfer cases to ACS.

Currently ACS has 10 databases around the country. The databases will be
consolidated from December 30, 2003 thru January 2, 2004. Stuffers are going
out to advise individuals that the system will be down during this period.
Taxpayers are asked to call after January 5, 2004. ACS telephone sites have
more resources on Mondays and Tuesdays. At this time the ACS employees
cannot access information for all taxpayers due to special command codes.
Where the case resides and where the call is received may be different. The new
database will give the employees access to more information. They will be able
to access ACS cases for the past 2 years.

The average wait time for ACS is 4 ½ minutes. ACS is not answering toll free
calls. The direct numbers for ACS are as follows:

W&I 1-800-829-7650
SB/SE 1-800-829-3903

If an account is not assigned to ACS the call will not go to ACS. If the call does
not meet the ACS criteria it will automatically go to toll free.

       North Texas Representation Council Meeting Minutes
                       December 5, 2003
LT-11 – Notice of Intent to Levy and Collection Due Process (CDP)

The LT-11 is an ACS letter. Taxpayers are informed of their CDP appeal rights
by one of the following final notices.

An LT 11 or Letter 1058(C), (Notice of Intent to Levy and Notice of Your Right to
a Hearing) is usually sent certified mail, return receipt requested, but can also be
given in person or left at the dwelling or usual place of business, to notify
taxpayers of their right to a CDP hearing. The following enclosures are included:

      Copy of letter (LT11/1058C)
      Form 12153, Request for a Collection Due Process Hearing
      Publication 594, The IRS Collection Process
      Publication 1660, Collection Appeal Rights
      Envelope

Many times taxpayers refuse to talk to ACS employees; therefore an agreement
cannot be reached. If the IRS does not hear from the taxpayer, in some cases
the LT-11 is sent out systemically based on the history of the case. The
employees monitor follow up dates. As the dates pass without a response from
the taxpayer, the LT-11 is automatically sent. The LT-11must be sent before the
IRS can issue a levy. No systemic letters will be issued for balance dues less
than $100.00 with the exception of Federal Employee Delinquency Program
Disposition accounts.

Form 12153 must be completed by the taxpayer and returned to the IRS. Form
12153 should be sent to the address on the form. Wage and Investment forms
should be returned to Kansas City or Fresno. Small Business Self Employed
(SB/SE) forms should be returned to Philadelphia or Cincinnati.

The forms will go to a special team that handles CDP cases. There are three
CDP teams in Kansas City. The teams conduct additional follow-up on the
cases. The team members are required to contact the taxpayer to see if the
case can be worked out prior to sending the case to Appeals. If the taxpayer
does not respond, the case is forwarded to Appeals.

The LT-12 is the Notice of Intent to Levy that goes to the Representative. There
are cases where the LT-12 does not have the same date as the LT-11. This can
create a problem in cases where the taxpayer does not provide a copy of the LT-
11 to the representative and the representative relies on the date on the LT-12.
The letters should be sent out at the same time. Examples should be provided to
Regeina Hall. The examples will be forwarded to Jeff Eppler.

       North Texas Representation Council Meeting Minutes
                       December 5, 2003
CP 504 – Urgent Notice – Balance Due

The CP 504 is the final notice generated out of the collection bank before it
actually reaches ACS. It is part of the enforcement process and Congress has
mandated the issuance of the CP 504 and LT-11.

The CP 504 notice informs the taxpayer that the IRS intends to issue a levy
against his state tax refund because he still has a balance due on one of his tax
accounts. It is also telling him that we will begin searching for other assets on
which to issue a levy and that we may also file a Federal Tax Lien, if we have not
already done so.

Abusive Tax Avoidance Transactions

Gene Moren, Sr. Tax Specialist gave a presentation on Abusive Tax Avoidance
Transactions (ATAT). He discussed the external toolkits, publications, home
based businesses, and prevalent Abusive Tax Avoidance Transactions in the
area. A copy of the ATAT PowerPoint is attached.

Gene is also the Offer In Compromise Specialist. Information pertaining to offers
can be obtained 45 days after the offer has been submitted.

To obtain information on doubt as to collectability or Effective Tax Administration
call Memphis: 901-395-0501 or Brookhaven: 631-687-3975.

You will receive information on who the offer is assigned to, where it is assigned,
and the status of the offer. If the offer is being worked in a centralized site the
taxpayer will receive a letter containing a telephone number.

Do not call the above numbers for doubt as to liability. Examination groups work
these cases.

Electronic Federal Tax Payment System (EFTPS) Federal Tax Deposit (FTD)
Penalty Refund Initiative

Regeina Hall, Sr. Tax Specialist discussed the EFTPS-FTD Penalty Refund
Initiative. On January 1, 2004 the Internal Revenue Service (IRS), EFTPS-FTD
penalty refund offer will be implemented nationwide. This offer allows paper
coupon users who were assessed a Form 941 deposit penalty the opportunity to
receive a one-time penalty refund of up to $1,000. To qualify, the employer must
use EFTPS for one year (four consecutive quarters) and make all their payments
on time.

       North Texas Representation Council Meeting Minutes
                       December 5, 2003
Publication 04048, Special IRS Penalty Refund Offer, will be available in mid-
December for distribution to employers, tax professionals, trade associations,
financial institutions, and other stakeholders.

In April 2005, after the returns are filed for the forth quarter of 2004, the IRS will
automatically determine which employers have achieved the 4 quarters of
EFTPS compliance and reverse the taxpayer’s most recent full-paid FTD penalty.
The refunds will be issued on a quarterly basis following the scheduled Form 941
due dates.

The Frequently Asked Questions and the EFTPS-FTD Penalty Refund Initiative
PowerPoint are attached.

Electronic Mail Services

Gwen Dawson-Green distributed the most recent edition of e-News for Tax
Professionals. The IRS e-News for Tax Professionals is an electronic mail
service designed to provide localized, targeted and immediate information for tax
professionals specifically for their geographic area. The electronic newsletter is
released monthly on the first and third Tuesday. To subscribe, go to
contents: Tax Professionals; topics: Subscriptions; Join e-News for Tax
Professionals. Subscriptions to “Quick Alerts” e-file messaging system, IRS
Digital Dispatch, and Employee Plans News can also be selected under this

Roundtable Discussion

Instead of playing music while a taxpayer is on hold, consider providing
information on Abusive Tax Avoidance Transactions.

Provide additional information in Publication 535 Business Expenses on the use
of magnetic signs on vehicles for advertising purposes. The magnetic signs do
not constitute 100% business use.

A practitioner should be on the Editorial Board to offer a different perspective for
news articles. Gwen Dawson-Green will forward this suggestion to her

All notices should include the taxpayer’s name and taxpayer identification

       North Texas Representation Council Meeting Minutes
                       December 5, 2003
Practitioners would like to have access to a current list of IRS letters with the
corresponding numbers. Regeina will obtain a list for distribution at the next
council meeting.

Joseph Brophy and Ron Fiedleman have questions on IRS tax notices. Ron
provided copies of the questionable notices to the council. Regeina will forward
the notices and questions to the appropriate parties.

Ron Fiedleman, CPA is a member of the Internal Revenue Service Practice and
Procedures Committee. If council members have suggestions for issues that
should be raised to the national level, please send the issues to Ron via e-mail.
Please put AICPA recommendations in the subject line.

The new Revenue Agents will go back to training in January. They will be
conducting office exams in the Alpha Road office for the next two weeks.

Appeals is training 70 appeals offers. There will not be an Appeals symposium in
FY ’04.

The lockbox for ACS payments is:

P.O. Box 66000

Dallas, TX 75266-0002

Gwen Dawson-Green will publish the above address in the e-News for Tax

Topics for future meetings:

      Practitioner Hotline
      Notices

If you have additional items that you would like addressed at the next meeting
please e-mail the items to Regeina Hall at by February
17, 2004.

The members of the North Texas Representation Council are responsible for
disseminating information from the bi-monthly meetings to their organizations via
e-mail and newsletters. Regeina will provide the information to the members by
e-mail. Please provide her with copies of any materials sent out to your

The next meeting will be on Friday, February 27, 2003 at 9:30a.m, 4050
Alpha Road. You will be notified of the room number.

North Texas Representation Council Meeting Minutes
                December 5, 2003


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