Tax Executives Institute -- IRS Midstates Region Annual Liaison Meeting Questions and Responses.

February 11, 2000

The following questions and answers are excerpted from materials prepared in connection with a liaison meeting held between representatives of TEI's Region V and Region VI with representatives of the IRS's Midstates Region. The Institute's delegation to the meeting was chaired by Gareth E. Glaser of the Fort Worth Chapter Vice President-Region VI, and James R. Burkle, Vice President-Region V, and included members from each chapter in the two regions. The IRS's delegation was chaired by Regional Commissioner Dale Hart. Note: A number of questions have been deleted or edited, either for space or because the discussion has been overtaken by events.

IRS Restructuring

1. The IRS is undergoing a significant restructuring of its organization. What is the status of the process?

   During the meeting held on February 11, 2000, Paul Cordova, Director of Field Operations for Natural Resources Industry, presented an update of the new Large and Mid-Size Business Division. Susan Graham, Acting Regional Compliance Director (Corporate) presented an update on the Tax Exempt and Government Entities Division. Ronnie Desbrow, Acting Regional Director of Appeals (Large Case) presented an overview of the Appeals restructure.

2. After IRS restructuring how will the role of Chief Counsel change?

   Regional Counsel Bill Hammack, Deputy Regional Counsel Gary Benford, and Assistant Regional Counsel (Tax Litigation) Mark O'Leary presented an update on the restructuring of Chief Counsel's office.

3. After IRS restructuring, will CEP taxpayers continue to be assigned a particular individual in the Problem Resolution Group? How will the success of this group be assured to continue?

   We are still working this issue, but it is our plan to devote one Service Center to house and service the LMSB tax returns. Right now we are looking at the Brookhaven Service Center, but this may change.

   Until we get this issue resolved, it is business as usual. The CEP or LMSB taxpayers will continue to work through the Case Manager assigned to the case who have the primary responsibility for resolving taxpayer problems.

   The LMSB taxpayers will also continue to file and deal with the service centers currently assigned.

   The Taxpayer Advocates (formerly Problem Resolution Group) currently located at each District Office will be a shared service between all operating divisions and they will continue to help LMSB taxpayers as the need arises.

4. We have heard that Case Managers may not be in the same geographical area as an audit team working on a case. Is this correct? If so, will the Case Managers be required to visit the team on a regular basis? How will the taxpayer have access to the Case Manager?

   For the most part, the Case Managers will be located in the same geographical area as the audit team working the case, which is generally the way it is now. We do have a few case managers in the Midstates Region who cover two or more states, i.e., Arkansas-Oklahoma, Kansas-Missouri, and Midwest Districts.

   The Territory Manager (similar position to the CEP Branch Chief or Examination Division Chief) may not be in the same geographical area as the case manager and audit team. However, we do not anticipate significant problems or delays in providing service to our customers. Providing excellent Customer Service to our taxpayers is one of our most important goals

5. What roles will e-mail and the Internet play in the new IRS?

   Customer Service is currently using the e-mail system to answer some taxpayer questions. All of the CEP audit sites either have received or will be getting new computers and all agents; specialists and managers will have e- mail addresses. We see both e-mail and the Internet as tools which our agents can use in their audits as the need arises and should enable us to better service our customer and employee needs. The e-mail addresses will be made public eventually.

   Policy

1. The new IRS Mission Statement, "Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all." How do the unreasonable positions taken by IRS audit teams (i.e., setting up the maximum possible tax adjustment as opposed to a more reasonable and defendable tax adjustment) comport with this mission statement? Arguably, this practice leads to difficult relations with taxpayers and serves to further the misconception that "IRS appeals gives everything away." Additionally, this practice leads to extended audits and costs to both the taxpayer and the IRS. Will this practice continue or will a more reasonable approach be found?

   Over the last few years more and more of our CEP cases are closing agreed or...