TAP: mission and methods.

Editor's note: Mr. Ely is the former chair of the AICPA Tax Division's IRS Practice and Procedures Committee. Ms. Bauman and Mr. Snow are members of that committee.

"If you want to change the IRS ... Speak Up!" This is the motto on the Taxpayer Advocacy Panel's (TAP's) website (www.improveirs.org). The TAP is a Federal Advisory Committee group comprised of U.S. citizens who serve as advisers to the Treasury Secretary, the IRS Commissioner, the National Taxpayer Advocate and IRS division commissioners. It consists of nearly 100 citizens, including CPAs, attorneys, educators and retired IRS employees. The TAP "listens to taxpayers, identifies taxpayers' issues, and makes suggestions for improving IRS service and customer satisfaction," according to its mission statement.

Although the AICPA and the state CPA societies have numerous ways for taxpayers to air their concerns, the TAP is a "grass roots" method available to individuals and small businesses that also want their voices heard. It was established in October 2002 and modeled after the Citizen Advocacy Panel, its successful predecessor formed in 1998. The TAP is authorized via the Treasury Secretary's authority under Sec. 7801 to administer the Internal Revenue laws.

The TAP's members represent the 50 states, as well as the District of Columbia and Puerto Rico. These volunteers serve on one of seven geographically based committees, each comprised of 10-18 TAP members and a local Taxpayer Advocate. Members also sit on a specific tax issue committee; see the exhibit on p. 437. Each geographical area selects a chair who serves on the TAP Joint Committee along with the TAP's chair and vice-chair. The Joint Committee acts as the TAP's management and administrative body and is empowered to speak on its behalf.

Exhibit: 2005 TAP Committees

* Multi-Lingual

* Ad Hoc

* Communications

* Wage & Investment Earned Income Tax
Credit

* Wage & Investment Notices

* Small Business/Self-Employed Division
Issues

According to a TAP program manager, Sandy McQuin, this year the panel is researching several important matters, including refund anticipation loans (RALs); Volunteer Income Tax Assistance (VITA) issues (e.g., publicity, small businesses and IRS support); alternative minimum tax education outreach; estate tax filing; notification of change in direct deposit refunds; availability of current-year Forms W-2 and 1099 information; and improving the extension request process.

Accomplishments and Challenges

In 2004, each member of the TAP's W&I/Reducing Taxpayer Burden/Notices Committee received the "IRS Special Act Award," in recognition of the committee's efforts to improve IlLS notices by (1) helping the IlLS to prioritize which notices to improve first, (2) assisting in scoring and evaluating the written quality of notices and (3) working with different teams to improve notices and the notice process.

The 2004 TAP Annual Report cited 84 recommendations for improving IRS service and customer satisfaction. Many of these suggestions have already been completed, while others are either being assessed or implemented, or awaiting an IRS response. The report, which is available on the TAP'S website or by calling [phone], offers suggestions on improving:

* E-file marketing to tax professionals;

* The earned income credit;

* The Free File Alliance (e.g., customer feedback, state returns, RALs, record retention and charges);

* Offer-in-compromise processing;

* The VITA program;

* Schedule C-EZ's (Net Profit

From Business) 2005, $5,000 expense limit increase;

* Outsourcing tax preparation; and

* Preparer licensing.

According to the annual report, the TAP remains relatively unknown to IRS employees, tax advisers and, most importantly, taxpayers. To get the word out, the panel has developed a comprehensive communication strategy that it will implement this year to educate taxpayers on its mission and objectives.

How to Become a TAP Member

Currently, the TAP hosts one annual face-to-face member and monthly conference calls (TAP-related travel expenses are reimbursed according to Federal regulations). The TAP solicits new members annually in April to serve a term of two or three years. Applications can be submitted online (preferred) or by paper. Requirements include (1) U.S. citizenship, (2) a 300-500-hour annual commitment, (3) current Federal tax filings and financial obligations and (4) a Federal Bureau of Investigation name check. The panel is seeking individuals who have experience (1) working in a team setting and with people from diverse backgrounds, (2) formulating and presenting proposals, (3) resolving disputes and (4) representing the interests of communities, organizations or the government. Applicants may use both personal and professional experience to meet the criteria.

In 2005, the TAP received over 400 applications in the first 11 days of its 29-day application period, despite the rigorous requirements. Applicants will be ranked to fill approximately 30 slots for this year.

How to Contact TAP

Taxpayers wishing to comment on TAP issues can visit TAP online, call [phone] or write (IRS, Room 7704 IR TA:TAP, Washington, DC 20224).

All comments are forwarded to TAP staffers, who are employees of the Taxpayer Advocate Service (TAS) and support TAP. The TAS is an independent IRS office that helps taxpayers resolve problems. It also recommends how to prevent such problems.

Suggestions are often anonymous and received either by email, phone or letter. However, when a person's identity is known, the TAP will respond directly as to whether it will consider that person's suggestion.

TAP meetings are open to the general public; meeting notices are published in the Federal Register. FROM CHRISTINE C. BAUMAN, PH.D., CPA, ASSOCIATE TAX PROFESSOR, UNIVERSITY OF WISCONSIN--MILWAUKEE, MILWAUKEE,WI

Mark H. Ely, J.D., CPA

Partner

Washington National Tax

KPMG LLP

Washington, DC