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Rescue bill extends tax breaks, expands energy credits, and more AMT fix: No real relief for accountants or legislators Tax woes may have Paul Hogan feeling “down under” Students help nonprofits during intense BAP competition Virus alert: Google ads lure users to fake Norton download site Bullying in the workplace is an international issue A Conversation With Betsy Nolen: The busy accountant’s best friend SEC, FASB issue clarifications on fair value accounting There are a number of practice issues where there is a need for immediate additional guidance. The SEC's Office of the Chief Accountant recognizes and supports the productive efforts of the FASB and the IASB on these issues, including the IASB Expert Advisory Panel's September 16, 2008 draft document, the work of the FASB's Valuation Resource Group, and the IASB's upcoming meeting on the credit crisis. To provide additional guidance on these and other issues surrounding fair value measurements, the FASB is preparing to propose additional interpretative guidance on fair value measurement under U.S. GAAP later this week. While the FASB is preparing to provide additional interpretative guidance, SEC staff and FASB staff are seeking to assist preparers and auditors by providing immediate clarifications. The clarifications SEC staff and FASB staff are jointly providing today, based on the fair value measurement guidance in FASB Statement No. 157, Fair Value Measurements (Statement 157), are intended to help preparers, auditors, and investors address fair value measurement questions that have been cited as most urgent in the current environment. ***** ****** Can management's internal assumptions (e.g., expected cash flows) be used to measure fair value when relevant market evidence does not exist? Yes. When an active market for a security does not exist, the use of management estimates that incorporate current market participant expectations of future cash flows, and include appropriate risk premiums, is acceptable. Statement 157 discusses a range of information and valuation techniques that a reasonable preparer might use to estimate fair value when relevant market data may be unavailable, which may be the case during this period of market uncertainty. This can, in appropriate circumstances, include expected cash flows from an asset. How should the use of "market" quotes (e.g., broker quotes or information from a pricing service) be considered when assessing the mix of information available to measure fair value? Broker quotes may be an input when measuring fair value, but are not necessarily determinative if an active market does not exist for the security. In a liquid market, a broker quote should reflect market information from actual transactions. However, when markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. In weighing a broker quote as an input to fair value, an entity should place less reliance on quotes that do not reflect the result of market transactions. Further, the nature of the quote (e.g. whether the quote is an indicative price or a binding offer) should be considered when weighing the available evidence. Are transactions that are determined to be disorderly representative of fair value? When is a distressed (disorderly) sale indicative of fair value? The results of disorderly transactions are not determinative when measuring fair value. The concept of a fair value measurement assumes an orderly transaction between market participants. An orderly transaction is one that involves market participants that are willing to transact and allows for adequate exposure to the market. Distressed or forced liquidation sales are not orderly transactions, and thus the fact that a transaction is distressed or forced should be considered when weighing the available evidence. Determining whether a particular transaction is forced or disorderly requires judgment. Can transactions in an inactive market affect fair value measurements? Yes. A quoted market price in an active market for the identical asset is most representative of fair value and thus is required to be used (generally without adjustment). Transactions in inactive markets may be inputs when measuring fair value, but would likely not be determinative. If they are orderly, transactions should be considered in management's estimate of fair value. However, if prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. A significant increase in the spread between the amount sellers are "asking" and the price that buyers are "bidding," or the presence of a relatively small number of "bidding" parties, are indicators that should be considered in determining whether a market is inactive. The determination of whether a market is active or not requires judgment. What factors should be considered in determining whether an investment is other-than-temporarily impaired? In general, the greater the decline in value, the greater the period of time until anticipated recovery, and the longer the period of time that a decline has existed, the greater the level of evidence necessary to reach a conclusion that an other-than-temporary decline has not occurred. Determining whether impairment is other-than-temporary is a matter that often requires the exercise of reasonable judgment based upon the specific facts and circumstances of each investment. This includes an assessment of the nature of the underlying investment (for example, whether the security is debt, equity or a hybrid) which may have an impact on a holder's ability to assess the probability of recovery. Existing U.S. GAAP does not provide "bright lines" or "safe harbors" in making a judgment about other-than-temporary impairments. However, "rules of thumb" that consider the nature of the underlying investment can be useful tools for management and auditors in identifying securities that warrant a higher level of evaluation. To assist in making this judgment, SAB Topic 5M (see note 1) provides a number of factors that should be considered. These factors are not all inclusive of the potential factors that may be considered individually, or in combination with other factors, when considering whether an other-than-temporary impairment exists. Factors to consider include the following:
All available information should be considered in estimating the anticipated recovery period. * * * Finally, because fair value measurements and the assessment of impairment may require significant judgments, clear and transparent disclosures are critical to providing investors with an understanding of the judgments made by management. In addition to the disclosures required under existing U.S. GAAP, including Statement 157, the SEC's Division of Corporation Finance recently issued letters in March and September that are available on the SEC's Web site to provide real-time guidance for issuers to consider in enhancing the transparency of fair value measurements to investors. # # # (1) AU 332, Auditing Derivative Instruments, Hedging Activities, and Investments in Securities, of the PCAOB Interim Auditing Standards also provide factors to consider when evaluating whether an impairment is other-than-temporary. Rescue bill extends tax breaks, expands energy credits, and more Internal Revenue Service Commissioner Douglas H. Shulman congratulated Congress for passing the AMT patch and tax extenders in time for the IRS to handle the changes on its tax forms and computer systems. "Timely passage of the AMT and extenders provisions is a great outcome for the nation's taxpayers. This gives the Internal Revenue Service enough time to prepare for the upcoming tax season," he said in a written statement. TARP measures New tax provisions associated with the Troubled Asset Relief Program (TARP) and the financial crisis address executive compensation and Fannie and Freddie Stock losses. • Executive compensation The rescue package limits the deductibility of compensation under Code Sec. 162(m) to $500,000 for CEOs, CFOs and other executives of companies participating in TARP auctions. In addition, companies participating in TARP auctions must agree to limit golden parachute payments to standards that will be set by the Treasury Department. Amounts in excess of these standards will be subject to excise tax. • Fannie and Freddie stock losses Community banks and other eligible financial institutions may treat their Fannie Mae and Freddie Mac losses as ordinary losses. This treatment applies to preferred stock that was held on September 6, 2008 or sold or exchanged on or after January 1, 2008 and before September 7, 2008. This treatment is not available to individuals, CCH says. The bill extends the Mortgage Forgiveness Debt Relief Act exclusion of all or part of excess mortgage debt under certain circumstances, CCH reports. AMT "patch" Under the new law, AMT exemption amounts for 2008 are increased to $69,950 for married couples filing jointly and surviving spouses, $46,200 for single taxpayers and head of households, and $34,975 for married couples filing separately. In 2007, a temporary one-year fix provided for $66,250 in exemptions for married couples and $44,350 for individuals. Without the change in the current law, the exemptions would have reverted to $45,000 for couples and $33,750 for individuals. The AMT provision is in effect for one year only. The law removes limits in the AMT on taking personal credits, including the dependent care credit and education tax credits, against regular tax liability. It also provides relief to taxpayers whose worthless stock options triggered an AMT liability. The law will abate liability and interest and penalty owned on the unpaid amounts. Energy incentives Expanding on a trend in recent legislation, Congress has "made fairly significant progress in the renewable, sustainable energy area," said Clint Stretch, managing principal of tax policy at Deloitte Tax in Washington, in a New York Times report. "It does look like a hodgepodge, but Congress is saying that the tax system should be a part of a solution, both with respect to carbon and more generally." The new law expands the definition of some renewable energy sources eligible for tax incentives, extends some credits for as long as eight years, and ends or modifies caps on others. Biodiesel fuel that is imported and immediately sold is no longer eligible for tax incentive retroactive to May 15, 2008. CCH's analysis of the new legislation's energy provision identifies the most significant provision for individuals as the $500 credit for the purchase of residential energy property. Eligible improvements include insulation, windows, and exterior doors. Among the many energy credits and extensions added to the bill are:
Individual incentives Tax incentives for individuals extended through December 31, 2009 by the Act are:
The additional standard deduction for real property taxes for non-itemizers has been extended through 2009. This will increase the standard deduction by $1,000 to $11,900 for non-itemizing joint filers, and by $500 to $5,950 for non-itemizing individuals and $8,500 for non-itemizing heads of household. Child tax credit The income floor for the child tax credit, which had been indexed, has been lowered from $12,050 to $8,500 (the original floor was $10,000). The credit is refundable to the extent of 15 percent of the taxpayer's income in excess of the floor amount. Business tax breaks Two business incentives that could have wide application are the research tax credit and the new markets tax credit. The research tax credit is extended to amounts paid in 2007 or 2008. The new market tax credit, which is extended through December 31, 2009, is one of the few incentives in the Tax Code that encourages taxpayers to invest in or make loans to small businesses in economically distressed areas, CCH says. Extending this credit may help businesses to obtain financing during this credit crisis. Many of the business tax incentives applied to specific industries or activities but the bill also extended credits for:
Offsets The new law is expected to generate more than $43 billion in revenue, CCH reports. Broker basis reporting has been expanded and a loophole that protected foreign deferred compensation has been closed. The foreign deferred compensation provision will produce an estimated $25.1 in revenue. Other offset measures in the bill:
Return preparer standard Small Business and Work Opportunity Tax Act of 2007, passed by Congress in May 2007, raised the tax return reporting standards for undisclosed, non-tax shelter transactions for tax return preparers to a strict, "more likely than not" standard, a level higher than that required of taxpayers. The new law retains the "more likely than not" return preparer standard for tax shelters and Section 6662A reportable transactions, but replaces the standard with a "substantial authority" standard for other transactions. The law states that, "No penalty shall be imposed under this subsection if it is shown that there is reasonable cause for the understatement and the tax return preparer acted in good faith." Barry C. Melancon, president and CEO of the AICPA who had urged passage of the extenders legislation, praised the passage of the provision that would equalize tax return reporting standards for tax preparers. "AICPA members last year quickly zeroed in on how important it is for Congress to establish equal reporting requirements for taxpayers and tax preparers," Melancon said, according to MarketWatch. "We appreciate the Senate's understanding and the fact that senators acted promptly to correct conflict of interest problems that can come up when the IRS reporting requirements aren't the same."
AMT fix: No real relief for accountants or legislators The new law also reduces the standard for tax preparers to substantial authority, the same standard required of taxpayers, a second provision with wide application. Tax preparers had previously been held to a higher standard and been called upon to provide more information than clients, leading to a potential conflict of interest, Ochsenschlager says. Ochsenschlager is "pleased that the extensions part of the bill passed as early as it did. Things will run more smoothly this year." Even so, he adds, it will be a daunting task for the Internal Revenue Service to incorporate the more than 100 new provisions in the bill into their forms and computers, and for the AICPA to revise the recently completed 2008 checklist that the Association provides to members each year. Millions of people will not fall into the AMT this year because of the fix, but that does not mean that things have gotten any easier for their accountants and tax preparers. Ochsenschlager recommends that tax preparers, who took a conservative position and did not assume an AMT fix this year, should recalculate their clients' fourth quarter estimated tax, because clients may have overpaid. And because there is no certainty that Congress will allow a similar fix for the AMT next year, preparers must look at all of the AMT implications when discussing tax planning with clients. Many other tax credits and deductions were extended for two years in the new legislation, but not the AMT exemption levels. A big part of the cost of the AMT to taxpayers and ultimately to tax preparers is its complexity, Ochsenschlager says, because it becomes the responsibility of the tax preparer to take the time to explain the measure and help clients who are not subject to the tax this year to put together a strategy that may keep them out of the AMT next year. Even the most informed clients have difficulty with the AMT because, "It involves complex strategies that are often counterintuitive. It is difficult to arrange your affairs to minimize your exposure and, once you are in it, it is difficult to get out," he says. The distribution of the AMT is very geographic, Ochsenschlager says. States like New York with concentrations of higher wage earners and higher income tax rates show more taxpayers who are subject to the AMT. The importance of attaching the AMT "fix" to a bill that would be likely to pass in both houses of Congress cannot be underestimated, because a standoff between the "Blue Dog" Democrats in the House of Representatives (those conservative and moderate Democrats who often vote for fiscally conservative measures) and Senate Republicans had made it doubtful that the two houses would agree on a bill this year. The House Democrats were insisting the AMT be paid for with other taxes, while Senate Republicans opposed any change in tax policy because they do not want to place the extensions of tax cuts in The Economic Growth and Tax Relief Reconciliation Act of 2001 in jeopardy. Both groups are acting on principle, Ochsenschlager says, and both have assumed the "high ground," which suggests that the fight will go on.
Tax woes may have Paul Hogan feeling “down under” When the investigation started, the ACC estimated it could clawback about $300 million (Australian) in unpaid taxes. Unfortunately, say critics, the investigation has gone on so long that the government has actually spent more than that to conduct the inquiry, and in the process, weakened civil liberties. While Paul Hogan may be the most high-profile subject of the investigation, he is by far not the only one. The tax commissioner, Michael D'Ascenzo, has told the public there are 500 suspected "tax cheats," and over 250 tax officials working on Operation Wickenby across five agencies. For his part, Paul Hogan, with the help of his financial advisor, Tony Stewart, is accused of weaving a complex web of crimes, with the intent to evade income tax in the U.S. and Australia. To assist the investigation, a U.S. court is demanding that three banks provide Hogan's financial records, as well as any information relating to companies affiliated with Hogan's businesses. Specifically, one of the accusations against Hogan is that he manufactured a false deduction for a nearly $1 million paid in interest. The details were reported in Australia's Daily Telegraph based on a crime affidavit filed by Crime Commission investigator, Ian Andrew. Tax officials say he borrowed $4 million from one of his own offshore businesses, GB Film Finance (registered in the British Virgin Islands, owned half by Hogan and half by fellow Crocodile Dundee investor, John Cornell). Later, say officials, a fictitious dispute over early repayment of the loan erupted, between Hogan's U.S. attorney, Craig Emanual, and GB Film Finance. The dispute was settled, says Hogan, when he repaid the loan including $600,000 in interest, through Quatre Saison Trust, an offshore account. Hogan then claimed a tax deduction for $910,884 on his 2004 Australian Income tax. In addition, Hogan is accused of dodging taxes by having periods of time when he did not claim residency in the U.S. or Australia, positioning himself so that he was liable for taxes in neither country. Hogan's finances were handled by the Sydney office of Ernst & Young. Currently E&Y's Marcus Davis is working to get Hogan's records together and signed off by the actor's U.S. attorney. Originally the ACC hoped that some of the participants would "rat each other out," but that hasn't happened, and the investigation has been repeatedly stymied. But... things may be looking up for tax officials and down for the subjects of the investigation. Now it seems, Operation Wickenby may have gotten a boost from Australia's federal courts. Previously the courts had petitioned to receive critical documents held by the Swiss accounting firm Strachans, but were blocked by a legal challenge from the accounting firm and a West Australian financier, Greg Dunn. The legal challenge pointed out that there were factual errors in the request for documents. Strachans, which seems to be at the hub of the controversy, is accused of creating personalized schemes that enable wealthy Australians like Hogan to evade taxes. The involvement of Strachans became known when a hotel room of Strachans' principal Philip Egglishaw was raided and documents and a laptop were seized in 2004. Based on that evidence the ACC learned that Strachans helped Australians hide assets in a complex array of overseas entities. In June 2008, the federal courts of Australia issued a ruling that the evidence obtained in that search can be used in moving forward with Operation Wickenby. So far, Hogan has laughed off the charges with a sort of "catch me if you can" attitude. Now as the case finally opens up... chances are, he's starting to feel a bit of heat... that is, if he has anything to hide. Students help nonprofits during intense BAP competition This recipe was cooked up by the Beta Alpha Psi (BAP) student honor society and Moss Adams LLP, which sponsored the competition called, "Project Run With It," loosely based on the Bravo Channel's "Project Runway" for would-be fashion designers. As in the TV show, the students were given several challenges and a tight time frame to come up with a solution during BAP's annual meeting in August in Anaheim, California. Project Run With It involved three not-for-profit companies — International Association of Skateboarding Companies, Fashion Business, Inc., and Saddleback Master Chorale — and BAP members from 42 chapters. The students were separated into teams of three, and each nonprofit had five teams assigned to solve their problems. After an initial briefing by the nonprofit CEOs, the teams had to develop solutions and make a presentation to the judges. Some teams didn't get along, probably all of them had some disagreements, but several participants told AccountingWEB that it was an intense, but rewarding experience. "Taking everything into account, I can definitely say that it was one of the best experiences of my life," said Frank Ferrara of Fordham University. "Being able to work in a real-life situation on a real company with actual problems and not some simple case study was amazing," he said. "The trust that was put into us and belief in our proposal was astonishing." Ferrara was part of the winning team that tackled issues faced by the Fashion Business Institute, which sought help improving its business processes and its cash flow. The team researched regulations, tax laws, possible tax breaks, and potential government funding through federal and state grants. Ferrara said: "Having the CEO of a major company compliment us on our work and tell us that she would have paid for our advice meant more to me than winning a competition. It gave me pride in my work and hope in my heart for a bright future in business. I recommend this program continue strongly for years to come and for every student accepted into it to take it seriously and have fun!" The Saddleback Master Chorale of Mission Viejo, California, sought help drawing new members, retaining talent, attracting larger audiences, and finding a place to rehearse and perform after losing its partnership with a local community college, said Kevin Good of Fort Lewis College in Durango, Colorado. His team searched for performance locations, suggested partnering with the Orange County Performing Arts Center, and researched grant possibilities. "It was a very pressing work environment in that we were on our own and the clock was always ticking. Working as a team had its ups and downs since in my particular case my teammates did not get along and one succumbed to a migraine after the first few hours," Good said. "Taking a leadership stance was necessary in my case and being able to react quickly and motivate the group was essential. The net of the experience was that one had to be quick at the draw and adapt to the challenging environment." Good, who is interested in non-for-profit accounting as a career, said the challenging environment seemed similar to what the real world would offer. Nick Jongerius of Western Illinois University, who also tackled the issues of the Saddleback Master Chorale with his winning team, said that despite some "preliminary nerves" going in, his team worked together extremely well, and quickly, addressing each goal of the chorale and suggesting ways to solve their key issues. In the classroom, he said, solutions to case studies do not matter. In contrast, he said, "The SMC plans to implement some of the ideas presented in an effort to continue doing what they do." Luke Luckett of Southeast Missouri State University and his team suggested that the International Association of Skateboarding Companies (IASC) improve cash flow by creating a magazine called Kickflip that would allow the group to provide a tangible product to subscribers for a small fee while allowing advertisers (only IASC members) to get direct access to skateboarders around the world. Luckett said he could not have asked for better team members, who made the work fun. "We all came from different backgrounds and had our own little tricks that we could bring to the table." The competition also attracted an international student, Salal al-Chanati of Auckland, New Zealand, whose team separated its work into short- and long-term strategies to help IASC. Each person on the team had different ideas and approaches. "As a result there was a lot of disagreement on which of the issues to tackle and how to tackle, but it came down to running through the case study carefully and having a shared common understanding." After holing up in separate work spaces with flash drives, computers and a printer, with a 1 a.m. deadline, the teams were ready to present their solutions later that morning to judging panels consisting of the not-for-profit representative, a faculty adviser, and a Moss Adams partner. Winning teams received $1,000 for their respective BAP chapters. "It really tested all the aspects of teamwork, communication, presentation, and professionalism, especially in such limited time span. I thought that all the presentations were absolutely amazing and the clarity of the message was very strong," al-Chanati said. BAP Executive Director Hadassah Baum, CPA, CMA, CAE, said it was the first year of the competition, but it was so successful that it will be featured again at the next conference in New York this summer. The competition was interactive, encouraged students from many different chapters to meet one another, and showed that not-for-profit organizations face many of the same problems as businesses in the for-profit world. She said Moss Adams selected the not-for-profits, which were the focus of the competition because they are least able to afford consultants and because helping nonprofits fits with BAP's community service mission. "I believe they were very appreciative, not only for the ideas that were provided by the winning teams, but all the teams gave valuable ideas and suggestions." Lynette Adsitt of Boise State University, whose team made the award-wining presentation for the IASC summed up her experience this way: "I would encourage others to participate. It is exasperating while in the process, but rewarding in the end — like tax season!"
Virus alert: Google ads lure users to fake Norton download site Our sister site, AccountingWEB.co.uk reports that Graham Cluley, senior security analyst with anti-virus company Sophos, recently raised the alarm in his blog about a Trojan virus that was being disseminated via a bogus Norton download site. After searching on Google for "free antivirus," Cluley clicked on one of the sites featured in the Sponsored Links column of the search results. This link led him to a convincing spoof page that was swathed in yellow - the corporate color of Norton owner Symantec. But his attempt to download the "free" version of the anti-virus application was interrupted by his own anti-virus code's blocking the installation of the FakeAV-AD Trojan horse virus. If you have a few spare moments, Cluley's video of the exercise is engaging and instructive. Pausing to admire the Norton Anti-Virus packaging, which features a picture of a Hulk-like figure, Cluley quips, "It looks like Peter Norton has been working out." Bullying in the workplace is an international issue "Organizations don't realize that just rude behaviors, ongoing discourteous types of behaviors, have such negative effects on employees," Sandy Hershcovis, assistant professor of business at the University of Manitoba, told livescience.com. Although there are no laws on the books, several states have considered healthy workplace legislation to ban bullying behaviors, according to The Inside Training Newsletter. Since 2003, these states have included: California, Connecticut, Hawaii, Kansas, Massachusetts, Montana, Missouri, New Jersey, New York, Oklahoma, Oregon, Vermont, and Washington. A form of workplace aggression, bullying behaviors include incivility, yelling, spreading gossip or lies, insulting employees, as well as hostility, verbal aggression, and angry exchanges. Various proposed laws define abusive conduct in a broad sense as "conduct of an employer or another employee that a reasonable person would find hostile or offensive," Susan K. Lessack, a partner with Pepper Hamilton's Labor and Employment Group told The Inside Training Newsletter. For the past few years, Britain has held a Ban Bullying at Work Day with more than 300 organizations and an estimated three million workers participating. On the official day, employers are encouraged to promote bullying awareness, inform employees of company policies on bullying, and distribute promotional materials. The UK's Ban Bullying at Work Day is scheduled for November 7. The Ban Bullying at Work Web site states, "Workplace bullying is a silent disease affecting millions of people through the UK. Nobody is immune, so turning a blind eye or a deaf ear is no longer an option." A Conversation With Betsy Nolen: The busy accountant’s best friend As a firm that values its staff, BMSS has always tried to reward employees for good work and make life easier for them when possible. That's probably why the firm has almost no turnover, and why they are consistently voted among the best places to work. In fact, this year they were named among the top ten firms in Birmingham. Before hiring Nolen, they were already bringing in people to give massages during tax season, compensating for long tax season hours with extra time off in the slower season, and even giving paid sabbaticals to long-time staff members. Always looking for new ways to keep employees engaged, hiring a personal valet to ease the stress of tax season seemed like a natural solution. Nolen learned through a friend who worked at BMSS that they were looking for someone to fill this newly created position. Earlier, she had graduated from Auburn University in Alabama with a degree in Health Promotion Corporate Fitness, and then moved to Charleston, South Carolina to continue her education. During the day, she worked as a full-time nanny. That job, she says, was good training to be a valet, since she had to learn to manage other people's schedules and to multi-task. When she heard about the opening at BMSS she threw her hat in the ring. Now the staff and partners at BMSS wonder what they did without her. "Let's see what happens..." Originally the job was a bit of an experiment... a "let's try it and see what happens" scenario. Since the position was new, Nolen has pretty much created it from scratch. On a typical day, she does banking and shopping for anybody at the firm that needs it. But, she says, she never really knows what a day will bring. She may need to take a car for servicing, give someone a ride to the airport, or pick up a prescription for a coworker's child. During tax season, when the firm provides dinner once a week for the whole staff, Nolen stays late to help coordinate. She has also become the go-to person whenever there is an event to plan, like a baby or wedding shower or a staff birthday party. She is often asked to pick up a gift for a partner or employee who can't get away to do it, and she even keeps a stash of gift wrap in her desk and does the wrapping herself. It may not take a college degree to be a personal valet, but it definitely takes a special person. Qualities to Look for in a Personal Valet "Flexibility is important," says Nolen, to anyone wanting to pursue this kind of work or to a firm looking to hire a personal valet. She starts most days with a plan, but knows that she has to be willing to throw out the plan when necessary. That means she has to know how to prioritize tasks and know what can wait until another day. And although she always tries to be accommodating, she has to know how to prioritize and sometimes to say with diplomacy, "I probably will not have time today, but I'll try to take care of it tomorrow." It goes without saying that a person doing this job must also possess great organizational skills, since it involves juggling appointments, pick-up times, deadlines, responsibility for the credit cards of coworkers that are entrusted to her, and hundreds of other details. That first tax season, having Nolen on board was so well-received among the staff that the partners decided to make it a full-time year-round position. That must mean that the services she provides pay for themselves. It's easy to see how her presence takes a lot of the stress out of the job for employees at BMSS. They have more time to devote to clients because they are not distracted by errands that aren't getting done. "Recruiting is so competitive right now," says Shank, and offering the services of a personal valet is a great drawing card. "If you have something that really differentiates you, like a personal valet, that definitely helps." It also helps with retention. That means that year after year, clients can return to BMSS and know that their favorite tax consultant will be there. What do the staff and partners think about having Nolen on board? "Everyone loves her… she's part of the family... the perfect person for the job." Shank adds that not only does Nolen handle her assigned tasks well, but she goes out of her way to find new ways to help people. You can't ask for much more than that. Firms that are looking for ways to increase productivity, boost morale, and enhance their recruiting and retention tools may want to start beating the bushes to find a personal valet before next tax season. But forget any ideas you might have about spiriting Nolen away from her current job. Don't let those gentle southern accents fool you. The good folks at BMSS will not take kindly to anyone who messes with family. Hiring a personal valet is a great idea… but you'll have to find your own Betsy.
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