TEI New Jersey Chapter -- IRS New Jersey District Liaison Meeting February 1, 2000.

The following minutes have been edited for length and to reflect intervening events.

OPENING REMARKS

IRS District Director Frank Nixon noted that the purpose of the meeting is to provide a valuable forum for the exchange of information and to address issues between representatives of the Internal Revenue Service and Tax Executives Institute and expressed his appreciation for the opportunity to meet with the TEI members. His office and the offices of the Examination Division Chief and Branch Chiefs are available if any concerns or questions on procedures, progress, etc., arise concerning Examinations, he stated.

Mr. Nixon thanked the TEI members for their participation in the operation of the tax system. Through their contact with a significant number of taxpayers, their expertise and knowledge, and their respect for the integrity of the tax code, the members keep the system operating in the way it was intended. These efforts are greatly needed and appreciated, he said.

Mr. Nixon discussed the modernization of America's tax agency, stressing the focus on the customers and the mission to provide a top-quality service that will enable those customers to understand and meet their tax responsibilities. He detailed the four new operating divisions, elaborating on the Large and Mid-Size Business (LMSB) Division. The emphasis is on the industry-based makeup of the new organization, with five major industries, each with separate headquarters. For example, the headquarters for Heavy Manufacturing, Construction, and Transportation will be located in New Jersey. Focus will be on specialization and coordination of issues within an industry on a nation-wide basis, striving for consistent, uniform interpretation of the tax law.

Mr. Nixon explained the new structure would not affect current audits. Once an examination is completed, however, the new organization will come into place, utilizing a highly skilled workforce trained to the specific industry, focusing on technical issues, and applying innovative up front issue resolution techniques. He explained that managers and employees were trained to respond to the needs of the taxpayer and to provide "one-stop customer service." He referred to the questionnaires dealing with customer satisfaction being sent to taxpayers and practitioners and stressed the importance of completing the surveys.

TECHNICAL AND ADMINISTRATIVE ISSUES

Update on IRS Restructuring Act

Ron Hartman, Technical Adviser to the Director...