An IRS update for practitioners.

• Author: Ely, Mark H.

In recent years, practitioners have heard many presentations from IRS officials about the Service's reorganization. Under the Internal Revenue Service Restructuring and Reform Act of 1998 (IRSRRA '98), the IRS made large-scale, functional changes. These changes were intended to be invisible to taxpayers and practitioners.

Now that the reorganization is substantially in place, practitioners are beginning to learn about the details of changes that will affect them directly. The October 2001 AICPA-sponsored IRS National Issues Meeting, attended by approximately 100 representatives of the state CPA societies, provided a wealth of information. The gathering was small enough to facilitate active and informative question-and-answer periods.

Speakers for the different sessions included Larry Langdon and Evelyn Petschek, Commissioners of the Large and Mid-Size Business (LMSB) and the Tax Exempt/Government Entities (TE/GE) Divisions; and Jerry Songy, Small Business/Self Employed (SB/SE) Division and James Grimes, Wage and Investment (W&I) Division, both directors in their respective Education and Communication areas. Daniel Black, Jr., National Chief of Appeals, was the luncheon speaker. Practitioners also heard from Nina Olson, National Taxpayer Advocate; David Williams, Chief of Communications and Liaison; Richard Skillman, Acting Chief Counsel; and Judith Dunn, Deputy Chief Counsel.

The meeting covered a wide range of topics. In some cases, more than one speaker addressed several topics, because the subject related to more than one division.

Overview

The IRS is working with taxpayers affected by the terrorist actions of Sept. 11, 2001, including taxpayers whose records were destroyed in New York, even though they live in other parts of the country. For these taxpayers, practitioners should contact the Service. IRS Pub. 3921, Help from the IRS for Those Affected by the Terrorist Attacks on America (September 11, 2001), includes information and phone numbers (see also Notices 2001-61 and 2001-68).

On another note, taxpayers who did not receive a $300, $500 or $600 advance-payment check due to an address change can claim the advance as a credit on their 2001 tax return.

Taxpayers should file 2001 business returns with either the Ogden or the Cincinnati Service Center. However, the IRS will process returns sent to the wrong service center this year without penalty.

OICs

The Service receives approximately 120,000 offers in compromise (OICs) annually...