The national CPA-IRS tax issues meeting.

• Author: Carlton, Lawrence

[ILLUSTRATION OMITTED]

The October 2008 Tax Practice and Procedures column included an item on the work of the IRS Practice and Procedures Committee and how it could benefit the AICPA membership (see 39 The Tax Adviser 692 (October 2008)). The committee's annual IRS tax issues meeting was held in Washington, DC, on October 29, 2008.

The tax issues meeting is generally attended by the IRS operating division commissioners and some additional IRS executives. It provides the membership with an update of what is happening at the IRS and allows time for participants' questions. Many problematic issues are brought up and corrective action is often initiated. The 2008 meeting was conducted by Michael Dolan, committee chair and member of KPMG. Speakers included Faris Fink, deputy commissioner of the Small Business/ Self-Employed Division (SB/SE); Frank Ng, commissioner of the Large and Mid-Size Business Division; Brady Bennett, director of compliance at the Wage and Investment Division (W&I); Sarah Hall Ingram, chief of appeals; Phyllis Gattos, acting director for Strategic Services of Electronic Tax Administration; Michael Chesman, outgoing director of the Office of Professional Responsibility; and Nina Olson, national taxpayer advocate.

At a midafternoon panel discussion on correspondence audits, participants included John Caggiano, campus examination policy director (SB/SE); John Lindsley, discretionary exam and innocent spouse director (W&I); and committee members Danny Snow of Thompson Dunavant PLC and Lawrence Carlton of Carlton & Duran, CPAs, PC.

IRS Commissioner Douglas Shulman set the tone with a luncheon address to the Tax Division on October 27, 2008. Each of the operating divisions echoed his desire for a better balance of enforcement and service.

The SB/SE reported that 62% of all individual taxpayers and 81% of all business taxpayers use a paid preparer. These statistics underscore the preparer's role in maintaining our tax system. The National Research Project (NRP) on S corporations has been completed, and the results should be available shortly. The ongoing NRP on individual returns will continue to better define selection criteria so that returns chosen for audit will most likely be those with compliance problems. Reduction of the tax gap continues to be the IRS's driving force. Increased outreach and educational activities will accompany enforcement initiatives.

Challenges for the IRS

A common problem throughout the IRS is lack of...