Minutes of Tax Executives Institute-IRS Large and Mid-Size Business Division Liaison Meeting.

February 12, 2009

On February 12, 2009, a delegation from Tax Executives Institute met with Frank Y. Ng, Commissioner of the IRS Large and Mid-Size Business Division, and other senior LMSB officials. The following minutes were prepared by Tax Executives Institute and, although reviewed by LMSB, they have not been formally approved by the agency. The agenda for the meeting was published in the January-February 2009 issue of The Tax Executive and is available at www.tei.org.

LMSB Commissioner Frank Y. Ng welcomed TEI President Vincent Alicandri and the TEI delegation. On behalf of TEI, Mr. Alicandri expressed the Institute's thanks to LMSB for taking the time to research the answers to TEI's questions. The LMSB and TEI delegations are set forth below.

LMSB Delegation

Frank Y. Ng, LMSB Commissioner

Barry B. Shott, LMSB Deputy Commissioner (International)

Christopher B. Sterner, LMSB Division Counsel

Drita Tonuzi, LMSB Deputy Division Counsel (Operations)

Robert L. Trujillo, LMSB Director, Planning, Quality, Analysis, and Support

Donald McPartland, LMSB Director, Research and Workload Identification

Cheryl Claybough, LMSB Director, Pre-Filing and Technical Guidance

Laura M. Prendergast, LMSB Director, Field Specialists

Pamela Carlson, Director, Business Systems Planning

Robert D. Adams, Senior Adviser to LMSB Commissioner

Elizabeth Wagner, Senior Adviser to LMSB Commissioner

Ed Saylor, Assistant to LMSB Director, Planning, Quality, Analysis, and Support

Christopher Larsen, LMSB Program Manager, Planning, Quality, Analysis, and Support

Mark Frost, LMSB Manager, Heavy Manufacturing & Transportation

Maria Garcia, Acting Executive Assistant to LMSB Deputy Commissioner (Operations)

Kathryn L. Gregg, Manager, LMSB Stakeholder Liaison

Caryl Grant, Program Manager, IRS 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, Lubrizol Corporation, TEI Executive Committee

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

Christopher T. 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

Jeffery P. Rasmussen, TEI Tax Counsel

1. Opening Comments

   Commissioner Ng stated that, although the change in administration has lead to vacancies at the Treasury Department and IRS, LMSB's priorities remain unchanged. The division's approach to tiered issues and compliance remains intact, he said, with an increased focus on international issues, including the structural way in which the agency approaches such issues.

   In respect of broader issues such as the economy, Mr. Ng reported that corporate receipts are down and the agency anticipates that more taxpayers will be carrying back losses. LMSB is reviewing how the government can help distressed companies, for example, obtain tentative refunds more expeditiously. The division is seeking to make the process as efficient as possible while keeping its compliance focus. He invited TEI to submit comments on the process, adding that the economy touches other divisions within the IRS as well. We want to make the process as easy as possible for companies to obtain their refunds, he reiterated.

   Mr. Saylor remarked that LMSB is trying to respond to taxpayers' needs and invited TEI's input on the agency's approach to handling issues such as losses. He said the IRS Ogden Service Center has geared up to process Forms 1139 (Corporation Application for Tentative Refund) as quickly as possible. The goal is to provide a refund within 45 days of filing. In addition, the IRS has designated a point person for obtaining refunds; if the refund takes more than 45 days and is for $2 million or more, the taxpayer may contact that person for assistance. In addition, an email address (f1139refund@ irs.gov) has been established to answer taxpayers' questions.

   Mr. Ng encouraged taxpayers to work through their audit teams first before contacting the point person. LMSB will provide guidance to the field, he added. In addition, the IRS is frying to resolve filing issues in respect of the superseding returns. In response to a question concerning e-filing, Mr. Saylor advised that taxpayers should check Box 5 on the return to show that it is a superseding return, adding that the Form 1139 cannot be e-filed.

   Messrs. Alicandri and McCormally commended LMSB for its responsiveness to the challenges created by the current economy.

2. Case...