Tax Executives Institute - Commissioner of Internal Revenue liaison meeting minutes.

February 13, 2009

On February 13, 2009, a delegate from Tax Executives Institute met with Douglas H. Shulman, Commissioner of Internal Revenue, and other senior officials of the Internal Revenue Service, for their annual liaison meeting. The following minutes were prepared by Tax Executives Institute and, although reviewed by the Internal Revenue Service, have not been formally approved by the agency. The agenda for the meeting was submitted in advance and has been published on TEI's website. (Note: The minutes of TEI's liaison meeting with IRS's Large and Mid-Size Business Division were published in the March-April 2009 issue of The Tax Executive.)

IRS Commissioner Douglas H. Shulman welcomed TEI President Vincent Alicandri and the TEI delegation. He noted the importance of the liaison meetings to facilitate open discussion on issues of common interest, which promotes better tax administration. On behalf of TEI, Mr. Alicandri expressed the Institute's thanks to the Commissioner for the IRS's ongoing commitment to active dialogue. The IRS and TEI delegations are set forth below.

IRS Delegation

Douglas H. Shulman, Commissioner of Internal Revenue

Linda E. Stiff, Deputy Commissioner (Services and Enforcement)

Mark Ernst, Deputy Commissioner (Operations Support)

J. Richard (Dick) Harvey, Senior Adviser to the Commissioner

Sarah Hall Ingrain, Chief, Appeals

Frank Y. Ng, LMSB Commissioner

Paul DeNard, LMSB Deputy Commissioner (Operations)

Barry B. Shott, LMSB Deputy Commissioner (International)

Clarissa Potter, Acting Chief Counsel, Internal Revenue Service

Stephen Whitlock, Director, Whistleblower Office

Carolyn Gray, Acting Director, Office of Professional Responsibility

Frank Keith, Chief, Communications & Liaison

Chris Neighbor, Acting Director, Office of National Public Liaison

Caryl Grant, Program Manager, National Public Liaison (Communications & Liaison)

TEI Delegation

Vincent Alicandri, Hydro One Networks, Inc., TEI President

Neil D. Traubenberg, Sun Microsystems, Inc., TEI Senior Vice President

Paul O'Connor, Millipore Corporation, TEI Secretary

Maurice M. Agresta, UPS, TEI Executive Committee

Margaret A. Curry, Kimberly-Clark Corporation, TEI Executive Committee

Janice L. Lucchesi, Akzo Nobel, Inc., TEI Executive Committee

Michael J. McGoldrick, Sunoco, Inc., TEI Executive Committee

Mark C. Silbiger, The Lubrizol Corporation, TEI Executive Committee

Thomas J. DeGeorgio, Shell Oil Company, Chair, TEI Corporate Tax Management

Committee

Christopher To Riley, Archer Daniels Midland Co., Chair, TEI IRS Administrative

Affairs Committee

Carita R. Twinem, Briggs & Stratton Corporation, Chair, TEI Federal Tax

Committee

Terilea J. Wielenga, Allergan, Inc., Chair, TEI Financial Reporting Committee

Timothy J. McCormally, TEI Executive Director

Eli J. Dicker, TEI Chief Tax Counsel

Mary L. Fahey, TEI General Counsel

Daniel B. DeJong, TEI Tax Counsel

Jeffery P. Rasmussen, TEI Tax Counsel

Commissioner's 2009 Priorities

Mr. Shulman reported that the IRS is reacting to the global economic conditions while staying the course in its core mission of providing taxpayer service and enforcing the nation's tax laws. The IRS is aggressively issuing guidance on a plethora of technical issues, including issues emerging from the financial crisis. In addition, many provisions in the American Recovery and Reinvestment Act (ARRA) will require expeditious guidance or otherwise make demands on IRS resources. After making the necessary adjustments to withholding tax tables and providing guidance to implement the Make Work Pay Credit, the IRS will address the expanded COBRA insurance coverage provisions, the treatment of federal government reimbursements to states, and the net operating loss carryback provisions. He reported that the IRS has experienced an uptick in the number of claims filed on Form 1139 Corporation Application for a Tentative Refund.

Deteriorating economic conditions have led the IRS to issue several announcements affecting individual taxpayers. For example, collection agent authority to assist taxpayers work through missed payments under a settlement agreement has been expanded. The agents are encouraged to adopt a reasonable, taxpayer-by-taxpayer approach. If taxpayers can pay, they should; if not, the reasons for nonpayment are evaluated and alternatives, such as an offer-in-compromise, are considered. In addition, the IRS is trying to "stay out of the way" when individuals sell or refinance their homes. A revenue procedure has been issued describing when and how tax liens should be released or subordinated so that homes can be expeditiously refinanced or sold, including through a foreclosure. Mr. Shulman added that on a strategic level the IRS continues to push for efficiencies in responding to individual inquiries, especially through the expanded use of technology. Although the IRS will keep its phone help service and walk-in assistance centers open, individuals will be encouraged increasingly to use the IRS's online services.

In addition to providing enhanced taxpayer services, Mr. Shulman said, enforcement remains a critical IRS function. The agency's enforcement priorities have been outlined in a series of speeches he has given, including two at TEI meetings. Large corporations that push the envelope on tax planning, he added, will see increased IRS attention. International tax matters continue to be the principal focus of the agency's enforcement resources, with foreign tax credit...