IRS talk: acronyms, dilemma and new Form 8919.

• Author: English, Damien B.M.
• Position: Federaltax

The following are highlights from the annual meeting between CalCPA's Committee on Taxation and the IRS. A transcript of the Q & As discussed will be available at www.calcpa.org/Content/24157.aspx later this month.

Acronym Update: TAS and SAMS

Got tax problems? Joe Benton, Area 7 Director for the Taxpayer Advocate Service (TAS), wants you to report any "systemic" issues you may encounter via the Systemic Advocacy Management System (SAMS). Systemic problems are those that don't apply to just one taxpayer.

Although none of the CPAs at the liaison meeting said they had used SAMS, Benton encouraged all tax practitioners to utilize SAMS as the TAS uses the system to identify issues and work with the IRS to correct problems. If there's a high volume being reported on a particular issue, it may be included in the National Taxpayer Advocate's Annual report to Congress.

Along the same lines, Benton reported that the TAS is struggling to meet increased inventory work demands, which CalCPA practitioners say is causing a several-month wait when trying to get cases resolved.

To fix this problem, National Taxpayer Advocate Nina Olson is working on methods to increase the TAS budget so more case advocates can be hired. The hope is that 120 new case advocates will be added nationwide in the first six months of this fiscal year, and 120 more will be added in the last six months.

For more information on the TAS, visit www.irs.gov/advocate/index.html. For more information on SAMS, visit www.irs.gov/advocate/article/0,,id=117703,00.html.

Legislative Dilemma

A question was raised concerning community property for California's registered domestic partners (RDPs).

CPA Gregory Bogden asked, "How will the IRS treat community property for California RDPs? For instance, will the transfer of 50 percent of community assets (wages earned by one partner) to the other partner result in a gift or will the IRS defer to state law and treat the 50 percent interest in the assets as already 'owned' by the other partner?"

Pat Donahue, an IRS Area Counsel, said, "Publication 555 instructions, revised as of May 2007, state that the community property rules do not apply to RDPs in California. Each partner must report their own income on their own return."

Furthermore, she cited Chief Counsel Advice 2000608038, which states that the U.S. Supreme Court's decision in Poe v. Seaborn dealt with Washington's community property law, which applied to a husband and wife.

The IRS does not...