Skip to main content
SpringerLink
Log in

Ethical Reasoning in an Equitable Relief Innocent Spouse Context

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

This study assessed the relationship between ethical reasoning and the decision to grant equitable relief using an innocent spouse vignette where a wife had partial knowledge of her husband's tax fraud. A path model derived from various ethics theories was tested using a sample of 357 accounting, legal, and human resource professionals, and after careful examination of the measurement and structural relationships in the path model, the results provided partial support for the study's hypotheses. Moral intensity was marginally associated with an increased recognition of an ethical issue and positively related ethical judgments made in an innocent spouse situation, and moral intensity was also negatively related to the decision to grant relief. The ethical judgment variable was positively related to the decision to grant relief, while ethical issue awareness was marginally associated with the decision to deny relief. The implications of these findings are discussed, along with the limitations of the study and suggestions for future research.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Ajzen, I.: 1991, 'The Theory of Planned Behavior', Organizational Behavior and Human Decision Processes 58, 179-211.

    Google Scholar 

  • Anderson, J. C. and D. W. Gerbing: 1988, 'Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach', Psychological Bulletin 103, 411-423.

    Google Scholar 

  • Arbuckle, J. L. and W. Wothke: 1999, AMOS 4.0 User's Guide (Smallwaters Corporation, Chicago, IL).

    Google Scholar 

  • Armstrong, J. S. and T. S. Overton: 1977, 'Estimating Nonresponse Bias in Mail Surveys', Journal of Marketing Research 14, 396-402.

    Google Scholar 

  • Bagozzi, J. L. and Y. Yi: 1988, 'On the Evaluation of Structural Equation Models', Journal of the Academy of Marketing Science 16, 74-94.

    Google Scholar 

  • Brass, D. J., K. D. Butterfield and B. C. Skaggs: 1998, 'Relationship and Unethical Behavior: A Social Network Perspective', Academy of Management Review 23, 14-31.

    Google Scholar 

  • Brazelton, J.: 2000, 'Qualifying as an Innocent Spouse-New Equity Provisions Make it Easier, But Not Guaranteed', Journal of Taxation ( January), 31.

  • Bryant, J. and G. Fleischman: 2001, 'A Review and Assessment of Recent Developments in the Revised Innocent Spouse Rules', Taxes-The Tax Magazine 79, 23-34.

    Google Scholar 

  • Cascardi, M. and D. O'Leary: 1992, 'Depressive Symptomatology, Self esteem, and Self-Blame in Battered Women', Journal of Family Violence (December), 249-260.

  • Cordano, M. and I. H. Frieze: 2000, 'Pollution Reduction Preferences of U.S. Environmental Managers: Applying Ajzen's Theory of Planned Behavior', Academy of Management Journal 43, 627-641.

    Google Scholar 

  • Crowne, D. P. and D. Marlowe: 1960, 'A New Scale of Social Desirability Independent of Psychopathology', Journal of Consulting Psychology 24, 349-354.

    Google Scholar 

  • Davis, M. A., N. B. Johnson and D. G. Ohmer: 1998, 'Issue Contingent Effects on Ethical Decision-Making: A Cross-Cultural Comparison', Journal of Business Ethics 17, 373-389.

    Google Scholar 

  • Ferrell, O. C. and L. G. Gresham: 1985, 'A Contingency Framework for Understanding Ethic Decision Making in Marketing', Journal of Marketing 49, 87-96.

    Google Scholar 

  • Ferrell, O. C., L. G. Gresham and J. Fraedrich: 1989, 'A Synthesis of Ethical Decision Models for Marketing', Journal of Macromarketing 9, 55-64.

    Google Scholar 

  • Fischer, D. G. and C. Fick: 1993, 'Measuring Social Desirability: Short Forms of the Marlowe Crown Social Desirability Scale', Educational and Psychological Measurement 53, 417-424.

    Google Scholar 

  • Fleischman, G. and J. Bryant: 2001a, 'A Critique of the Innocent Spouse Equitable Relief Provisions', Tax Notes 90 (March 19), 1716-1720.

    Google Scholar 

  • Fleischman, G. and J. Bryant: 2001b, 'Thoughts on the Innocent Spouse Knowledge Issue,' Tax Notes 91 ( June 4), 1757-1761.

  • Fleischman, G. and J. Shen: 1999, 'IRS Restructuring and Reform Act of 1998 Gives Innocent Spouses a Much Needed Break', Taxes-The Tax Magazine 77 (August), 25-35.

    Google Scholar 

  • Fleischman, G. and S. Valentine: 2002, 'How to Improve Equitable Relief for Innocent Spouses', Tax Notes 96, 874-877.

    Google Scholar 

  • Fleischman, G. and S. Valentine: 2003, 'Professionals' Tax Liability Assessments and Ethical Evaluations in an Equitable Relief Innocent Spouse Case', Journal of Business Ethics 42, 27-44.

    Google Scholar 

  • Ford, R. C. and W. D. Richardson: 1994, 'Ethical Decision Making: A Review of the Empirical Literature', Journal of Business Ethics 13, 205-221.

    Google Scholar 

  • General Accounting Office: 2002, 'General Accounting Office Report: Tax Administration: Internal Revenue Service: Innocent Spouse Program: Performance Review', Washington D.C. (April 24, GAO-02-558).

  • Hair, J. E., R. E. Anderson, R. L. Tatham and W. C. Black: 1998, Multivariate Data Analysis (Prentice Hall, Upper Saddle River, NJ).

    Google Scholar 

  • Hansen, R. S.: 1992, 'A Multidimensional Scale for Measuring Business Ethics: A Purification and Refinement', Journal of Business Ethics 11, 523-534.

    Google Scholar 

  • Henderson, C.: 2000, 'Psychologically Abused Women Experience Significant Physical and Mental Health Problems', Medical Letter on the CDC and FDA (May 23).

  • Hu, L. and P. M. Bentler: 1999, 'Cutoff Criteria for Fit Indexes in Covariance Structural Analysis: Conventional Criteria Versus New Alternatives', Structural Equation Modeling 6, 1-55.

    Google Scholar 

  • Hunt, S. D.: 1990, 'Commentary on an Empirical Investigation of a General Theory of Marketing Ethics', Journal of the Academy of Marketing Science 18, 173-177.

    Google Scholar 

  • Hunt, S. D. and S. Vitell: 1986, 'A General Theory of Marketing Ethics', Journal of Macromarketing 6 (Spring), 5-16.

    Google Scholar 

  • Jones, T.: 1991, 'Ethical Decision Making by Individuals in Organizations: An Issue Contingent Model', Academy of Management Review 16, 366-395.

    Google Scholar 

  • Locklin, L.: 2000, 'Tax Court Wrestles with the Intricate Innocent Spouse Rules', Tax Notes (March 19), 1448.

  • Loe, T. W., L. Ferrell, and P. Mansfield: 2000, 'A Review of Empirical Studies Assessing Ethical Decision Making in Business', Journal of Business Ethics 25, 185-204.

    Google Scholar 

  • Loe, T. W. and W. A. Weeks: 2000, 'An Experimental Investigation of Efforts to Improve Sales Students' Moral Reasoning', Journal of Personal Selling and Sales Management 20, 243-251.

    Google Scholar 

  • Mayo, M. A. and L. J. Marks: 1990, 'An Empirical Investigation of a General Theory of Marketing Ethics', Journal of the Academy of Marketing Science 18, 163-171.

    Google Scholar 

  • Morris, S. A. and R.A. McDonald: 1995, 'The Role of Moral Intensity in Moral Judgments: An Empirical Investigation', Journal of Business Ethics 14, 715-726.

    Google Scholar 

  • Randall, D. M. and M. Fernandes: 1991, 'The Social Desirability Response Bias in Ethics Research', Journal of Business Ethics 10, 805-817.

    Google Scholar 

  • Reidenbach, R. E. and D. P. Robin: 1990, 'Toward the Development of a Multidimensional Scale for Improving Evaluations of Business Ethics', Journal of Business Ethics 9, 639-653.

    Google Scholar 

  • Rest, J. R.: 1986, Moral development: Advances in Research and Theory (Praeger Publishers, New York).

    Google Scholar 

  • Revenue Procedure 2000-15: 'Innocent Souse: Liability for Tax in Joint Return: Equitable Relief: Threshold Requirements', (2000-1, Cumulative Bulletin, p. 447).

  • Reynolds, M. A.: 2000, 'Professionalism, Ethical 338 Sean Valentine and Gary Fleischman Codes and the Internal Auditor: A Moral Argument', Journal of Business Ethics 24, 115-124.

    Google Scholar 

  • Sims, R.: 1991, 'The Institutionalization of Organizational Ethics', Journal of Business Ethics 10, 493-506.

    Google Scholar 

  • Singer, M. S.: 1996, 'The Role of Moral Intensity and Fairness Perceptions in Judgments of Ethicality: A Comparison of Managerial Professionals and the General Public', Journal of Business Ethics 15, 469-474.

    Google Scholar 

  • Singer, M., S. Mitchell and J. Turner: 1998, 'Consideration of Moral Intensity and Ethicality Judgment: Its Relationship with Whistle Blowing and Need-for-Cognition', Journal of Business Ethics 17, 527-541.

    Google Scholar 

  • Singer, M. S. and A. E. Singer: 1997, 'Observer Judgments about Moral Agents' Ethical Decisions: The Role of Scope of Justice and Moral Intensity', Journal of Business Ethics 16, 473-484.

    Google Scholar 

  • Singhapakdi, A., S. J. Vitell, and G. R. Franke: 1999, 'Antecedents, Consequences, and Mediating Effects of Perceived Moral Intensity and Personal Moral Philosophies', Journal of the Academy of Marketing Science 27, 19-36.

    Google Scholar 

  • Singhapakdi, A., S. J. Vitell and Kraft: 1996, 'Moral Intensity and Ethical Decision-Making of Marketing Professionals', Journal of Business Research 36, 245-255.

    Google Scholar 

  • Steenkamp, J. B. and H. van Trijp: 1991, 'The Use of LISREL in Validating Marketing Constructs', International Journal of Research in Marketing 8, 283-299.

    Google Scholar 

  • Strahan, R. and K. C. Gerbasi: 1972 'Short, Homogeneous Versions of the Marlowe-Crowne Social Desirability Scale', Journal of Clinical Psychology 28, 191-193.

    Google Scholar 

  • Trevino, L. K.: 1986, 'Ethical Decision Making in Organizations: A Person-Situation Interaction Model', Academy of Management Review 11, 601-617.

    Google Scholar 

  • Valentine, S. and G. Fleischman: 2002, 'Ethics Codes and Professionals' Tolerance for Societal Diversity', Journal of Business Ethics 40, 301-312.

    Google Scholar 

  • Weber, J.: 1992, 'Scenarios in Business Ethics Research: Review, Critical Assessment, and Recommendations', Business Ethics Quarterly 2, 137-160.

    Google Scholar 

  • Wheaton, B., B. Muthen, D. F. Alwin and G. F. Summers: 1977, 'Assessing Reliability and Stability in Panel Models', in D. R. Heise (ed.), Sociological Methodology 1977 (Jossey Bass, San Francisco), pp. 84-136.

    Google Scholar 

  • Wiley, C.: 2000, 'Ethical Standards for Human Resource Management Professionals: A Comparative Analysis of Five Major Codes', Journal of Business Ethics 25, 93-114.

    Google Scholar 

  • Wotruba, T. R.: 1990, 'A Comprehensive Framework for the Analysis of Ethical Behavior, with a Focus on Sales Organizations', Journal of Personal Selling and Sales Management 10, 29-42.

    Google Scholar 

  • Zerbe, W. J. and D. Paulhus: 1987, 'Socially Desirable Responding in Organizational Behavior: A Reconception', Academy of Management Review 12, 250-264.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management and Marketing, University of Wyoming, P.O. Box 3275, Laramie, Wyoming, 82071, U.S.A.

    Sean Valentine

  2. Department of Accounting, University of Wyoming, P.O. Box 3275, Laramie, Wyoming, 82071, U.S.A.

    Gary Fleischman

Authors
  1. Sean Valentine
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Gary Fleischman
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Valentine, S., Fleischman, G. Ethical Reasoning in an Equitable Relief Innocent Spouse Context. Journal of Business Ethics 45, 325–339 (2003). https://doi.org/10.1023/A:1024111814533

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1024111814533

Search

Navigation