Department Profile

Summer 2000
Volume 107 - No. 2

Reliance on Compliance

BLE's newewst department keeps

members in line, out of jail

The BLE's Office of Tax Compliance, from left: Dr. Elaine Reese; Temporary Staffer Jamie Beadling; and Compliance & Benefits Specialist Linda Thomson

The Office of Tax Compliance interacts with several government entities, including the Internal Revenue Service, the Office of Labor Management Standards of Department of Labor, the Railroad Retirement Board and the Federal Election Commission to name a few. The department attempts to ensure that the BLE's various subordinate units (divisions, committees and boards) adhere to government regulations and restrictions.

"Our primary function is to educate the officers, specifically the secretary-treasurers, of their duties in order to enable everyone to stay out of jail," states Dr. Elaine Reese, Director of the Office of Tax Compliance.

Dr. Reese, along with Linda R. Thomson, Compliance and Benefits Specialist, understand what they need to do to keep the BLE running smoothly. The department was created because President Edward Dubroski saw a need to expand the International Division's work in the area of compliance.

The International Division is recognized as exempt from taxation. The subordinate units are not required to obtain exemption, but come under the International Division's jurisdiction. Consequently, the International Division is expected to protect itself by guiding the subordinates in a manner that will not jeopardize the BLE. This protection comes in the form of examination of financial data presented by the subordinates, coordinating audits of subordinates, cooperating with governmental agencies and protecting the subordinates from overly zealous government investigators.

"One of the problems that we constantly face is the great turn-over in the ranks of the officers," said Dr. Reese. "Too many of the officers are new and don't understand what their responsibilities are or what to do. A secretary-treasurer who is not familiar with his or her duties can make one mistake and cause serious consequences - even bankrupting a division, committee or board. We work to keep this from happening by coordinating with the Record Department and the Special Representatives."

In addition Dr. Reese regularly travels and conducts classes around the U.S. and Canada in order to help both new secretary-treasurers and subordinates who are in trouble - and to keep others who aren't in trouble from getting into hot water.

One principal government agency that wreaks havoc with subordinates is the Internal Revenue Service. "The IRS may say that they are more taxpayer friendly, but they are not that friendly," said Dr. Reese. "You don't lie down in the grass with a snake, even if it promises not to bite you."

IRS is serious about enforcing the tax code and has no problem in securing compliance.

Dr. Reese knows. Prior to working for the BLE, she was an Internal Revenue Agent. She joined the BLE staff 11 years ago in an attempt to assist the other side.

"It is easy to carry a big stick and beat people over the head but after becoming a Christian this was not the acceptable way to present oneself," states Dr. Reese.

Dr. Reese, also known as "the D.I." (drill instructor), is the pastor of a small congregation (New Life In Christ Ministries) on the east side of Cleveland. She is called Doctor after having achieved a Doctorate in Ministry - not accounting or taxation - from Oral Roberts University. She is qualified in the fields of accounting and taxation, having earned a B.S. in Accounting from the University of Akron, in addition to her six years with the IRS. Her correct title is The Reverend Doctor Elaine Reese.

While Dr. Reese handles the IRS and the FEC, Thomson deals with the offices of Labor Management Standard, Department of Labor. She handles reporting, bonding, FEC reporting and benefits issues.

Thomson is also the BLE's resident insurance specialist.

"I handle the questions that the members and retirees have about their insurance coverage," said Thomson. "I troubleshoot and try to help them out any way that I can."

Thomson also will handle the upcoming division elections. She sends out information and materials to make sure that every aspect is conducted according to the BLE Constitution & Bylaws, which conforms with the Department of Labor Standards. In addition, the results of the division elections will determine the delegates to the upcoming International Convention.

Thomson has worked at the BLE for 28 years. She recently celebrated an anniversary on July 2 and hopes to work many more years, providing quality service to the membership. "I like helping to answer their questions," said Thomson. "I only wish I could help more."

As an accountant, Dr. Reese realizes the importance of checks and balances. "We need to inaugurate a system (accounting) which is thorough and easy enough for the secretary-treasurers yet complex enough to facilitate the record keeping required by the International Division."

"With the beginning of a new century came continued technological advances," Dr. Reese continued. "Technological improvements will have a great impact upon the BLE's compliance processes. Even now the Department of Labor and the Internal Revenue Service have plans to require online filing of reports and tax returns within the next five years. This will mean significant changes to our own software to enable the work to be completed without a duplication of processes. We anticipate changes in our systems to enable the secretary-treasurer to process online the various applications for which he/she is responsible. However these changes will not occur overnight but will require development, funds, time and patience from all of us."

According to Dr. Reese, being a staff person with the BLE has fostered an appreciation for the protective side as well as the business side of our organization. Each side is important and carries its own complexities and issues but the coming together transpires when we remember our main focus is service to the membership.

The Office of Tax Compliance will endeavor to provide good service to the membership as well as the two-sides of this complex organization, she concluded.

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