Minutes of TEI-IRS liaison meeting.

• Position: Tax Executives Institute

March 2, 2011

On March 2, 2011, a delegation from Tax Executives Institute met with the Honorable Douglas H. Shulman, Commissioner of Internal Revenue, and other senior officials of the Internal Revenue Service. The following minutes were prepared by Tax Executives Institute and, although reviewed by the IRS, they 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.

IRS Commissioner Douglas H. Shulman welcomed TEI President Paul O'Connor and the TEI delegation. The Commissioner noted the importance of the liaison meetings to facilitate open discussion on issues of common interest, which promotes better tax administration. Mr. O'Connor expressed the Institute's appreciation to the Commissioner for the IRS's ongoing commitment to active dialogue. The IRS and TEI delegations are set forth in the accompanying boxes.

IRS Delegation

Douglas H. Shulman, Commissioner of Internal Revenue

Steven T. Miller, Deputy Commissioner (Services and Enforcement)

William J. Wilkins, Chief Counsel, Internal Revenue Service

Heather C. Maloy, LB&I Commissioner

Paul D. DeNard, LB&I Deputy Commissioner (Operations)

Michael Danilack, III, LB&I Deputy Commissioner (International)

David R. Williams, Director, Return Preparer Office

Frank Keith, Chief, Communications & Liaison

Candice V. Cromling, Director, Office of National Public Liaison

Caryl Grant, Program Manager, National Public Liaison

(Communications & Liaison)

TEI Delegation

Paul O'Connor, EMD Millipore, TEI International President

David M. Penney, General Motors of Canada Limited, TEI Senior Vice President

Carita R. Twinem, Spectrum Brands, Inc., TEI Secretary

Terilea J. Wielenga, Allergan, Inc., TEI Treasurer

Rodney C. Bergen, The Jim Pattison Group, TEI Executive Committee

Michael J. Bernard, Microsoft Corporation, TEI Executive Committee

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

C.N. (Sandy) Macfarlane, Chevron Corporation, TEI Executive Committee

Kelly A. Nail, Hewlett-Packard Company, TEI Executive Committee

Mitchell E. Salamon, American Airlines, TEI Executive Committee

James P. Silvestri, Eisai, Inc., TEI Executive Committee

John A. Mann, Walgreen Co., Chair, TEI Federal Tax Committee

Mark C. Silbiger, The Lubrizol Corporation, Chair, TEI IRS Administrative Affairs Committee

Donald J. Rath, Synopsys, Inc., Chair; TEI Financial Reporting Committee

Timothy J. McCormally, TEI Executive Director

Eli J. Dicker; TEI Chief Tax Counsel

Daniel B. De Jong, TEI Tax Counsel

Jeffery P. Rasmussen, TEI Tax Counsel

Benjamin R. Shreck, TEI Tax Counsel

Commissioner's 2011 Priorities

Commissioner Shulman reported that ongoing negotiations over the federal budget have prompted short-term reallocations of IRS resources and made planning difficult. With the threat of a government shutdown, the IRS has had to consider whether to suspend certain operations. Implementing the IRS's numerous initiatives in the current environment will demand considerable focus and flexibility. In addition to budgetary concerns, the IRS has had to update its systems to accommodate changes to the tax laws passed in December 2010, putting further strain on its resources.

Mr. Shulman commented that the liaison meeting agenda contains many of the issues of greatest concern to the IRS, including Schedule UTP, the reorganization of the Large Business and International Division (LB&I), return preparer regulation...