Tax Executives Institute, Inc. Regions V & VI IRS Liaison Meeting Houston, Texas

1. Tax Executives Institute, Inc.Regions V & VI IRS Liaison MeetingHouston, Texas May 14, 2012 Paul Curtis Field Specialists Director, Field Operations West

2. Objectives • Organizational Structure & Roles • Research and Experimental Credit (R&E) • Capitalization to Repair (C2R) • Employment Tax – Voluntary Compliance Settlement Program (VCSP)

3. Organizational Structure & Roles David Horton Director, Field Specialists Stephen Whiteaker DFO, Field Specialists East Paul Curtis, DFO, Field Specialists West

4. Organizational Structure & Roles Paul Curtis DFO, Field Specialists West Employment Tax Engineering All Field Specialist Employees in the Western U.S. and all Employment Tax

5. Research and Experimental Credit The 3 R’s • Risk Analysis • Resources • Real Life Realities

6. Capitalization to Repair (C2R) • Temporary Regulations issued December 23, 2011 • Current Direction • Resources

7. Capitalization to Repair (C2R) • Examination of Tax Years Beginning before January 1, 2012 • Examination for Tax Years Beginning on or after January 1, 2012 but before January 1, 2014 • Examination for Tax Years Beginning on or after January 1, 2014

8. Employment Tax • Voluntary Classification Settlement Program (VCSP) • Provides partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat workers as employees • Eligibility

9. Employment Tax • Announcement 2011-64 • Form 8952, Application for Voluntary Classification Settlement Program (VCSP)

10. Questions & Answers