Ethical Reasoning and Equitable Relief

Abstract

Professional manager perceptions were investigated in this study using a survey containing two equitable relief situational vignettes to investigate empirically two of the four steps from Rest's (1986) ethical reasoning process. Business societal perceptions of the equitable relief subset of the innocent spouse rules were also investi­gated, focusing on the knowledge of evasion and abuse factors.

The results indicated that the ethical reasoning process was significantly related to ethical decision making and Rest's (1986) model. Furthermore, decision makers were more likely to judge that relief be granted in an equitable relief scenario involving abuse than to one not involving abuse. The knowledge of evasion factor contained in both scenarios appeared to influence indirectly respondents' judgments to deny equitable relief, while the presence of emotional abuse strengthened relief judgments. Finally, the study presents a general framework involving the interrelationship of Congressional intent with societal perceptions regarding subjective equitable relief tax-law provisions that are associated within a societal context.