IRS small business/self employed operating division tells board it continues to sharpen focus, resources on enforcement.

At its Mar. meeting, the Internal Revenue Service Oversight Board discussed the status of the IRS Small Business/Self Employed Operating Division. SB/SE Commissioner Dale Hart told the board that the division continues to align its resources with its strategic priorities: identifying and pursuing promoters of abusive tax avoidance schemes, high-income/ high-risk taxpayers, high-income non-filers and taxpayers who fail to report income. The division also continues to focus on the National Research Program, which began in the fall of 2002 and will measure reporting compliance and identify compliance issues. NRP will enable the IRS to improve the examination selection process.

On another subject, IRS Chief Information Officer Todd Grams reported that businesses and tax-exempt organizations are now able to file tax forms 1120 and 990 electronically. In Feb. the IRS launched its first release of "Modernized e-File," which contains 53 forms and schedules used by 1120 filers. Release 2, scheduled later this year, will contain the remaining 43 forms.

The IRS also reported that it has launched the first release of e-Services that will allow tax practitioners and financial institutions to work electronically on accounts. Five of the nine e-Services projects have been completed; the remaining four are on schedule to be released this month.

Lastly, National Taxpayer Advocate Nina Olson discussed her annual report to Congress. One area of particular interest focused on small business and self-employed taxpayers. Olson said she is meeting with stakeholder groups to discuss a proposal whereby self-employed individuals would have a percentage of their income withheld at the source. The board also was briefed on the Professional Development Program, a four-year training program for eight Taxpayer Advocate Service occupations.