TEI meets with IRS, Treasury, and Hill Staff.

• Position: Chapter News

Led by TEI President Ray Rossi, a delegation of members of TEI's Executive Committee and its Federal, IRS Administrative Affairs, and International Tax Committees participated earlier this year in annual liaison meetings with the IRS Large and Mid-Size Business Division and the Treasury Department's Office of Tax Policy. Separate meetings were held with IRS Commissioner Mark Everson and other officials from the IRS National Office, and with Chief of Staff George Yin and his staff at the Joint Committee on Taxation, as well as other congressional staff.

TEI's meeting with the Treasury Department focused on four sets of recently issued regulations. In respect of the proposed section 482 services regulations, the Institute discussed issues relating to the retention of the cost safe harbor, the modification of the simplified cost-based method, and the development of a periodic list of what the government considers "low-margin" services. The organization also sought clarification of the effective date for the final research tax credit regulations. The Institute also commended the department for issuing the more simplified capitalization rules and for narrowing the confidentiality filter of the tax shelter disclosure regulations. Turning to legislative issues, the Institute positively noted the simplification proposals in the Bush Administration's 2005 budget, but expressed concern about the proposed use of private debt collection agencies to collect unpaid taxes. TEI also expressed reservations about certain aspects of...