July 17, 2015
Practitioner Liaison Meeting
Virtual Meeting
Time: 9:00 a.m. – 12:00 p.m.
Attendees:
 Les Armstrong, Oklahoma Society of Enrolled Agents
 Janet Gifford, Oklahoma Society of Certified Public Accountants
 Kelly Wright, Oklahoma Society of Accountants
 Ed Moore, Oklahoma Society of Enrolled Agents
 Blaine Peterson, Oklahoma Society of Certified Public Accountants
 Alan Holloway, Oklahoma Bar Association
 Shelly Harry, Oklahoma Society of Certified Public Accountants
 Tony Du, Oklahoma Society of Enrolled Agents
 Alan Holloway, Oklahoma Bar Association
 Janese Shepard, Oklahoma Society of Certified Public Accountants
 Susan Gentry, SBSE Examination Territory Manager
 Jonathan Say, SBSE Collection Territory Manager
 Patricia Bontrager, Accounts Management Headquarters Supervisory
Tax Analyst
 Mary Faulhaber, Accounts Management Headquarters Analyst
 Heidi Jordan, Accounts Management Headquarters Analyst
 Gerardo Gomez, Supervisor Special Agent Criminal Investigation
 Delphine Hensley, Oklahoma Taxpayer Advocate
 Norman Becker, Oklahoma Appeals Team Manager
 Emma Sanchez, Senior Stakeholder Liaison
 Anita Douglas, Senior Stakeholder Liaison
All Attended via Webinterpoint System and AT&T Conferencing
Meeting Summary:
Anita Douglas, Senior Stakeholder Liaison welcomed and thanked
everyone for attending the meeting. Anita introduced Senior Stakeholder
Liaison, Emma Sanchez, and informed everyone she would assist if they were
having problems accessing the Webinterpoint System or the AT&T Toll Free
Number. She explained the purpose of this meeting is to allow
representatives of the various tax professional organizations present today to
hear the latest updates and initiatives from some of our Divisions and
Functions located in Oklahoma. She also stated IRS Representatives are also
here to listen to any issues or concerns you or your members may have. It
is important that the Minutes that will be taken and shared with you are
distributed to your members and network and she thanked them in advance
for continuing to share the Minutes with their members and network.
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Patricia Bontrager, Accounts Management Headquarters Supervisory
Tax Analyst, gave a brief overview on Form 1045 and noted the most
common states the Campuses see when processing Form 1045 include:
Missing, incomplete or incorrect Forms 6251; Tentative Application filed more
than 12 months after the end of the loss year; Incorrect “Before Carryback”
information; Missing, incomplete, or incorrect Schedule B, Form 1045;
Election to waive the carryback period expired; Loss year return not
posted/filed; Missing Form 1310, Statement of Person Claiming Refund Due a
Deceased Taxpayer. She also reviewed the timeframes for filing Form 1045.
No questions were asked about her presentation. See attached Power Point
and Form 1045-Application for Tentative Refund and Instructions.
Norman Becker, Oklahoma Appeals Area Manager, thanked everyone for
attending the Oklahoma Appeals Open House that was held on March 19th.
He stated that Appeals will no longer be the finder of fact. Any new
information must be provided to Exam for their consideration. He also stated
that non-docketed cases coming to Appeals are required to have at least a
12 month Statute of Limitation. Appeal's is currently in the process of
setting up guidelines for docketed cases. Norman also provided a brief
overview of the SBSE Fast Track Settlement Program that allows taxpayers
to resolve their cases that meet the criteria within 60 days while the case is
still in Exam.
Delphine Hensley, Oklahoma Taxpayer Advocate, informed us
Rena Girinakis is the New Deputy National Taxpayer Advocate. Her
background is in the Collection Division and Rena brings a wealth of
experience to her new position. Delphine also mentioned that she is
currently conducting outreach at the various Low Income Tax Clinics and
Domestic Violence Locations in the State of Oklahoma, informing taxpayers
about the Taxpayer Bill of Rights. If any tax professional would like copies of
the Taxpayer Bill of Rights for their office, to please contact Delphine at 405297-4055 and she will mail them. Delphine also mentioned the release of
the National Taxpayer Advocate June Report to Congress. She highlighted
some of the topics covered in the report. Delphine also mentioned their
current staffing remains the same as last year, she anticipates the loss of
two case advocates at the end of FY 2015 to retirement and will request
hiring behind them. She was able to hire a secretary after being without one
for a year. Delphine was able to hire a veteran to fill the position and is very
excited to have this great addition to the staff. Delphine responded to
questions from Attendees.
Jonathan Say, SBSE Collection Territory Manager – OKC Office,
informed us that in addition to their regular case work, Revenue Officers are
working a large number of Federal Tax Deposit (FTD) Alerts. The IRS
identifies taxpayers that may be under-deposited based upon prior quarter
liabilities and utilizes the EFTPS system to confirm current deposits for the
quarter. Cases are created allowing the Revenue Officer to meet with a
taxpayer to confirm their compliance and resolve tax issues prior to issuing a
balance-due notice to a business that hasn't made its required regular tax
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deposits. FTD Alerts is an effective tool for Revenue Officer’s because it can
bring taxpayers back into compliance.
Gerardo Gomez, Supervisory Special Agents, Criminal Investigation,
Stated there are 3 Agent groups in Oklahoma. His groups of agents are
Located in Oklahoma City, Amarillo and Lubbock, TX. Jerry stated they are a
unique division of the IRS in that when any of their investigations results in a
criminal prosecution whether a trial, a conviction or a guilty plea, it becomes
public record, which results in an article in the newspaper or on the internet
about the case and crime. Jerry shared some of the press releases during his
presentation. Their current area of focus is Identity Theft Fraud, Return
Preparer Fraud & Questionable Refund Fraud, International Tax Fraud and
Fraud Referrals from IRS Civil Divisions. Jerry highlighted some of the
information found in the IRS Criminal Investigation Releases Fiscal Year 2014
Annual Report. Jerry also provided a 3 year comparison on the various types
of investigations from FY 2012 to FY 2014. Criminal Investigation boasted
the highest conviction rate in all of federal law enforcement in FY 2014 at
93.4%. Jerry responded to questions from Attendees.
Anita Douglas, Senior Stakeholder Liaison, shared a power point which
included some of the topics that will be presented at the remaining 2015
Nationwide Tax Forums that are scheduled throughout the country. She also
provided an update on the Oklahoma Federal Declared Disaster – FEMA 4222
that was issued due to the severe storms and tornadoes that occurred
between May 5th and May 10th. Currently there are 33 Counties that can
receive assistance from FEMA, the IRS and other federal and state agencies.
FEMA has 5 Disaster Recovery Center (DRC) Sites currently open and more
are expected to open during the month of August. Information was shared
regarding correctly reporting USDA Conservation Reserve (CRP) Program
payments correctly. Some preparers are incorrectly reporting the USDA
Conservation CRP Payments on Form 4836, Farm Rental Income and
Expenses and circumventing Self-Employment Tax. These payments should
be reported on Form 1040 Schedule F, making the payments subject to SelfEmployment Tax per IRC Code Section 1402(a)(1). Anita also stated that
effective January 1, 2016; the Department of Treasury will no longer accept
checks over the amount of $99,999,999. This past tax season, the IRS
deposited quite a few checks over the amount the Federal Reserve banks can
process. Each of the checks had to be processed manually. Two or more
checks will be required or we recommend that taxpayers use Fed Wire to
make their payments. Anita also reminded Attendees that if they have
clients that conduct business in any of the U. S. Territories or Possession,
they must file Form 8300, Report of Cash Payments Over $10,000 Received
in a Trade or Business within 15 days of the transaction. Also businesses,
including individuals who are sole proprietors that receive more than $10,000
cash in a transaction or in two or more related transactions in any U. S.
Possession or Territory must file Form 8300 with the IRS.
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Anita provided updates on the Annual Filing Season Program and the PTIN
Program Requirements for Return Preparers. Anita reminded Attendees to
have their clients report any changes in circumstances to the Marketplace
that could affect their client’s 2015 Premium Tax Credit. She also reminded
them that taxpayers that plan to take advantage of the 2016 Advance
Premium Tax Credit, should e-file their 2014 return as soon as possible if
they haven’t done so. By filing as soon as possible, it will substantially
increase their chances of avoiding a gap in receiving the Premium Tax Credit
for 2016. The Small business Health Care Tax Credit is still available for
small business owners. Even if they took advantage of the credit in prior
years – they may still be eligible to take advantage of the credit for tax year
2014 and beyond. To be eligible for the credit, you must: Have purchased
coverage through the Small Business Health Options Program - also known
as the SHOP marketplace; Have fewer than 25 full-time equivalent
employees; Pay an average wage of less than $50,000 a year; Pay at least
half of employee health insurance premiums For tax years beginning in 2014,
the maximum credit increases to 50 percent of premiums paid for small
business employers and 35 percent of premiums paid for small tax-exempt
employers. The credit is available to eligible employers for two consecutive
taxable years. Even if you are a small business employer who did not owe
tax during the year, you can carry the credit back or forward to other tax
years. Small tax exempt employers may be eligible to receive the credit as a
refund so long as it does not exceed their income tax withholding and
Medicare tax liability. Refund payments issued to small tax-exempt
employers claiming the refundable portion of credit are subject to
sequestration. Finally, you can benefit from the credit even if it wasn’t
claimed on their 2014 tax return by filing an amended return.
Anita stated an issue was raised by several practitioners who had received
letters regarding change of address notices for Businesses. Notices were
received when Form 8822-B was not sent in. This issue was elevated and it
turned out other Stakeholder Liaison in the Country were also getting
inquiries about this same issue. CP Notice 148 is a new notice this year
that came about as part of the Consolidated Appropriations Act of 2014.
Beginning in 2015, any address change made on a BMF entity with open
employment tax filing requirements generates two notices to the taxpayer:
CP 148A: Understanding Your CP148A Notice and CP 148B: Understanding
Your CP148B Notice. Any change to the taxpayer’s address will generate the
notices including minor changes such as changing “suite” to “ste.” If the
address change is correct, you do not need to do anything. If it is not correct
the taxpayer should return the notice to the IRS with a completed Form
8822-B, Change of Address or Responsible Party - Business.
Round Table Discussion:
A suggestion was made regarding e-filed returns: Practitioners would like to
be able to e-file a return even if the primary or SSN has been e-filed to
reduce the amount of paper that must be sent with a paper filed return. The
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suggestion will be forwarded to the Responsible Business Unit for
consideration.
A question was asked as to why we have long wait time for the Practitioner
Priority Service. Anita stated the May 2015 IMRS Hot Issue this issue: Each
year, the e-help Desk receives phone calls from taxpayers because their tax
preparer referred them for assistance resolving rejected returns, tax law and
tax account matters. This increases the taxpayer’s burden and causes
lengthier delays for everyone. The e-help desk cannot help these callers and
must direct them to other sources for assistance – typically IRS.gov including
Publication 5136, IRS Services Guide. The EPSS e-help Desk is intended
specifically to assist tax professionals (Enrolled Agents, Reporting Agents,
Electronic Return Originators, Certified Public Accountants, etc.) with nonaccount related questions and issues concerning e-products. They do not
provide support to individual taxpayers experiencing e-filing issues.
No other issues or concerns were raised.
Next Meeting Date:
The next meeting is tentatively scheduled for Friday, January 15, 2016 from
9:00 a.m. to 12 noon. This meeting will be face to face. The location will be
provided at a later date.
Meeting Adjourned
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