IRS talks enforcement: annual liaison meeting tackles all, from Appeals to POAs.

• Author: Spaniel, Bill
• Position: Federal tax - Tax policy of Internal Revenue Service - Power of attorneys

The IRS remains committed to improving service to taxpayers, but the agency is beefing up enforcement after years of cutbacks.

That was one of the messages IRS representatives imparted to about 50 CalCPA members at the annual CalCPA-sponsored IRS liaison meeting Nov 18.

Ted Meyer, compliance territory manager for the Small Business, Self-Employed Division, said the IRS is hiring more agents to collect unpaid taxes.

He said the IRS also will support Commissioner Mark Emerson's efforts to discourage abusive tax-avoidance shelters; deter illegal offshore arrangements; catch non-filers and those who underreport income; and reduce the proliferation of tax-exempt entities.

Stuart Josephs, CPA, chair of the Federal Subcommittee of CalCPA's Committee on Taxation, expressed concern regarding delinquent California taxpayers eligible for the Franchise Tax Board's amnesty program. He noted that delinquent taxpayers might not take advantage of the program for fear that the IRS will come after them.

Ben Duncan, SBSE deputy area counsel, said the service was unlikely to pursue criminal charges against taxpayers who voluntarily come forward. The IRS, however, may pursue civil action depending on the case.

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Derek Ganter, SBSE tax specialist for Taxpayer Education and Communication, encouraged CPAs to help the IRS communicate important tax issues to the public. He noted that small businesses need to understand the importance of proper employment tax reporting requirements. TEC is also concentrating outreach efforts in the food and beverage industry and the cosmetology industry.

Appeals Priorities

Paula Mills, Appeals supervisory officer, outlined the following Appeals priorities for 2005:

* Develop a balanced program that gives collections and appeals equal weight;

* Reduce the workload of Appeals employees;

* Open an Appeals center in Memphis, Tenn., to handle offers in compromise and due-process cases;

* Improve customer service/quality; and

* Respond to inquiries within 30 days, rather than the current 60 to 90 days.

Tax Advocate

Joe Benton, Taxpayer Advocate area director, listed the following areas that national Taxpayer Advocate Nina Olson is reviewing:

* Limiting the number of taxpayers affected by the alternative minimum tax;

* Pursuing registration of tax advisers who are not attorneys, CPAs or enrolled agents;

* Ensuring that IRS enforcement procedures don't violate taxpayer rights; and

* Publicizing the taxpayer advocate...