PARKING ISSUES, IRS SETTLEMENT INITIATIVE, ALLEGED

UNCLAS SECTION 01 OF 03 USUN NEW YORK 000209

SIPDIS

SIPDIS

TREASURY FOR IRS, DHS FOR TSA

E.O. 12958: N/A
TAGS: OFDP UN CVIS
SUBJECT: PARKING ISSUES, IRS SETTLEMENT INITIATIVE, ALLEGED
VISA REFUSALS OF IRANIAN OFFICIALS HIGHLIGHTED AT 232ND
HOST COUNTRY COMMITTEE MEETING, MARCH 5, 2007


1. Summary: The UN Committee on Relations with the Host
Country (Host Country Committee-HCC) discussed the results of
the HCC's survey of the New York Diplomatic Parking Programme
(the Program) at its 232nd meeting on March 5, 2007.
Missions which oppose the Program as implemented or on
principle (Russian Federation, Mali, Cuba, Libya) focused on
those few survey statistics indicating perceived problems
with the Program. Germany, as President and on behalf of the
EU, supported by Spain, strongly urged the U.S. as host
country to request the IRS to extend the March 30 deadline to
at least June 30, 2007, for submissions regarding the IRS'
income tax settlement initiative applicable to U.S. citizens
and permanent resident aliens working at the UN or at UN
Missions. Iran protested alleged visa refusals to Iranian
officals attending Commission for Social Development and
Commission on the Status of Women meetings. Belarus thanked
the U.S. for its smooth handling of Belarus officials
arriving for this week's international conference at the UN
on trafficking in women and girls. At a post-meeting lunch,
DS/OFM/DAS Claude Nebel and USUN, OFM/NY and HCC Chair
interlocutors discussed the issue of reciprocity in regard to
Eritrea's request to buy property (see septel),the IRS
settlement initiative, problems encountered by UN Mission
Ambassadors at NY area airports, especially treatment
accorded them during secondary screening, and the possibility
of liberalizing travel restrictions in connection with
UN-related meetings. End summary.

Parking Survey discussion



2. Marjorie Tiven, Office of the Mayor, NYC Commissioner for
the UN, Consular Corps and Protocol gave a statement
regarding the success of the Parking Program, and the HCC
Bureau had already circulated the U.S. statement (previously
emailed to IO/UNP) along with the results of the parking
survey. Both NYC and USUN noted the success of the program,
the resources available to Missions, and NYC announced a
phone line for the exclusive use of diplomats.as well as
online improvements in the parking summons adjudication and
review process.



3. Libya, Cuba, Mali and the Russian Federation object either
to the Program's implementation or on principle (as they
argue that the Program requires them to submit to NYC
jurisdiction in violation of their privileges and
immunities). They refused to characterize the Program as a
success, and focused on what few statistics they could
interpret as showing dissatisfaction with the Program, with
Cuba asserting that some of the 126 Missions (out of 192)
that failed to respond to the survey may have done so because
they did not trust that the results would be accurately
reflected in the (Secretariat's) compilation. The objecting
delegations noted that 71.2 per cent of the 66 survey
respondents indicated there was a difference between the
Missions' understanding of the Program's implementation and
that of host authorities involved in that implementation.
The various critics of the survey characterized it as
preliminary, that problems still needed to be resolved, and
described the survey as a review of the Parking Program
rather than a review of its implementation. Qatar asking
that the 3 allocated decals to each Mission be transferable
among a Mission's vehicles. Russia requested additional
spaces to accommodate its 100-plus vehicles. Objecting
delegations noted that they will raise the issues of
improvements to/changes in the Program during the fall UNGA
when the HCC drafts the recommendations section of its report
to the Sixth Committee. The Chair reminded delegations that
Committee action was restricted to the ways in which the
existing Program is being implemented; the Committee has no
clear mandate to suggest or demand modifications to the
Parking Program itself.

IRS Settlement Initiative



4. The IRS settlement initiative was initially aimed at

USUN NEW Y 00000209 002 OF 003


allowing U.S. citizens and permanent resident aliens (PRA)
working at embassies and consulates in the Washington, DC
area to update and regularize their reporting of taxes owed
to the IRS for the last three years, with the IRS agreeing
not to look at taxes owed prior to that time. Although the
initiative was announced to embassies in the Washington, DC
area in late 2006, word of the initiative did not reach the
UN Missions in New York until February 2007. As the UN
Secretariat and UN Missions want their employees to be able

SIPDIS
to take advantage of the initiative, at OFM/NY's and USUN's
urging, the Department succeeded in getting the IRS to extend
the original deadline for replying from late February to
March 30, 2007, with the IRS permitting individuals to sign
up by submitting their names by that date. USUN made clear
that it does not consider the issue as appropriate for the
HCC because there is no issue of diplomatic privileges and
immunities involved. However, the Spanish Permanent
Representative noted that ensuing strikes by employees at
Spanish diplomatic missions in the U.S. in mid-February had
negatively impacted the functioning of its missions in the
U.S., and thus was a proper topic for HCC consideration.


5. Germany, as President and on behalf of the EU, noted the
negative effect on missions' morale, and requested the U.S.
as host country to urge the IRS to extend the deadline for
responding to the initiative to at least June 30, 2007, which
would allow affected individuals time to learn more about the
initiative and seek advice of tax counsel as needed. Spain
noted that the issue is complicated as each case is affected
by several factors, including the employee's status in the
U.S., whether there is a tax treaty or other relevant
bilateral agreement between the U.S. and the employee's
country of nationality, etc. Indonesia asked the Chair to
send a circular note to all UN Missions.
Qatar wanted an expanded discussion in front of all UN
members in order to discuss measures to be taken.


6. USUN MinCounselor emphasized that this is an IRS
initiative, noted that each affected individual's case is
unique, and reviewed the basics of the initiative, the
timeline of how and when USUN, OFM/NY and UN Missions learned
about the initiative, and what is being done to address the
matter, including exploring the possibility of an IRS
briefing. He noted that the Treasury and the State
Departments were consulting on the issue.

Iran protests alleged refusals of visas for Iranian officials



7. Iran protested alleged visa refusals to Iranian officals
attending the Commission for Social Development and
Commission on the Status of Women meetings. Iran labelled
the visa refusals an impediment to Iranian officials' travel
to the UN to participate in UN conferences, and also noted
the arbitrary and repeated delays encountered by its G-1 and
G-2 visa applicants. Iran expressed it profound concern
regarding the U.S.'s repeated failure to meet its host
country obligations, and requested the Committee to take
measures to ensure that the host country meets those
obligations, especially as the Iranian officials had
submitted their visa applications in a timely manner.


8. USUN Host Country MinCouns responded that the US Mission
was unaware of any such refusals, that we were surprised
given that the U.S. Mission was in regular contact with the
Iranian Mission on visa matters, and that we did not believe
the visas had been refused as there is a long-standing
procedure in place in the rare case where an official visa is
refused. USUN MinCouns also indicated that if Iran
encountered problems with the issuance of these visas, it
should have notified the U.S. Mission, which in turn could
have followed up and perhaps solved whatever problems arose.
USUN MinCouns urged Iran to provide details after the meeting
so that the U.S. Mission could look into the alleged visa
refusals, and that USUN would respond to the Iran Mission
directly. USUN is informed
that there have been recent press reports from London that
some Iranians coming to New York had visa problems.

USUN NEW Y 00000209 003 OF 003



Belarus thank-you



9. Belarus expressed gratitude to the the U.S. for its
response to Belarus' request to ensure rapid processing at
the airport helping the Belarus delegation attend the
international conference on trafficking in women and girls
that opened March 5. Belarus noted its appreciation for the
etiquette displayed by customs and airport officials, and
hoped that such treatment would continue. USUN did not
respond, but the HCC Chair replied that it was good for the
HCC to hear positive news concerning the issue of diplomats'
treatment at airports.

Post-HCC meeting lunch: reciprocity, IRS, airport woes, and
travel restrictions



10. At a lunch following the HCC meeting, DS/OFM/DAS Claude
Nebel, USUN MinCounselor Graham, OFM/NY Director
Winton/Deputy Director Smith and HCC Chair Mavroyiannis
(Cyprus) discussed the issue of reciprocity in regard to
Eritrea's request to buy property (see septel),the IRS
settlement initiative, problems encountered by UN Mission
diplomats at airports, especially treatment accorded them
during secondary screening, and the possibility of
liberalizing of travel restrictions in connection with
UN-related meetings.

--IRS settlement initiative: The problem seems more prevalent
at missions of developed countries, especially those in the
EU, and is compounded by the fact that several Missions may
have inadvertently given inaccurate information and advice
concerning the tax liability of their U.S. citizen and PRA
employees. DAS Nebel noted that Treasury and State are
discussing the possiblility of extending the deadline for
NY-based Missions. The HCC Chair is requesting a room at the
UN which would allow an IRS representative to brief the UN
communityon the settlment initiative and one is tentatively
scheduled for the week of March 19.

--airport woes: HCC Chair Mavroyiannis noted that UN
Ambassadors and even lower level diplomats at UN missions
often carry sensitive documents (e.g., position papers to
read on the plane or take home) in their carry-on luggage.
Receiving a boarding pass imprinted with "SSSS" and thus
being selected for random secondary screening often requires
the diplomats to open their carry-on luggage and risks having
these documents opened and examined by Transportation
security Administration (TSA) personnel. The ambassadors
often complain of the brusque tone and treatment by airline
or TSA personnel, even when the diplomat identifies himself
as an ambassador, and the frequency with which the diplomats
are subjected to the "SSSS" secondary screening makes them
seriously doubt that their selection is truly random. The
ambassadors find being singled out in front of other
travelers at SSSS secondary screening embarrassing,
especially if they are traveling with colleagues not so
selected, and particularly if they come from cultures where
losing face or being embarrassed is regarded as more
abhorrent than is the case in American culture. UN Permanent
Representatives repeatedly request that they be exempt from
such SSSS secondary screenings. DS/OFM/DAS Nebel noted that
there are discussions on this issue between the Department
and the TSA.

--flexibility re travel restrictions: HCC Chair Mavroyiannis
also conveyed the hope that the Department would begin to
look more favorably toward granting permission to Cuban and
other officials subject to travel restrictions who are
invited to attend UN-related meetings beyond the 25 mile NYC
limit, such as the annual July seminar at Princeton
University on UN-related topics.
WOLFF