By asking what he should do professionally, he avoids the whole anger issue. It becomes simply professional ethics. However, I do think if he is not required to report this, (especially if his methods of gaining the information are at all questionable), he should probably be job hunting. Working with this bitterness, and with other employees knowing you know something about the boss' provate affairs (a tactical error, imho), means a possibly explosive situation.

I know this is off-topic, but in the past two years, I've encountered four people who have harangued me about the virtues of the Fair Tax. During the course of these conversations, every single one of them has subsequently bragged about various methods they employ to hide income from the evil IRS. I'd like to say it hasn't occurred to them that, if everyone paid what they truly owed, income tax rates could be lowered for the vast majority of Americans.

I don't think that's the case, though. What good is arguing for a three to five percent rate cut with someone who shields half his income? So I'm left talking with a person who rails against the rules, doesn't follow them, and advocates a different set of rules that they might choose to follow.

Cary's focus was spot on here: do what your profession requires. The dirtier the people around you, the cleaner you MUST attempt to be, lest it stick to you and leave stains. Fastidious adherence to the stated rules is the only thing that will save your career if/when this thing blows up.

But you also had questions about karma. Has it occurred to you that the karma that matters here is not yours, but your boss's? What goes around has come around. It's his cosmic justice; the means to deliver it just happened to land on your desk. You're an agent of fate here, with a clearly-defined role to play. It's not often the gods give us the gift of delivering the goods on our own enemies -- it's usually left to others -- so savor this as a rare privilege, and consider yourself blessed.

I also hope you are looking for another job -- because no matter how this goes down, you're going to need one, and soon. Either you turn him in, in which case you will be terminated; or else you hang around until the IRS catches up with him by some other means, at which point you may well find yourself answering some unpleasant questions, too. "I left as soon as I noticed the improprieties" is a strong position from which to salvage your professional reputation. "I turned him in as soon as I found out" is even better.

If your professional ethics require it, go ahead and drop your dime on the jerk with a clear conscience -- and then get out while the getting's good.

Is the letter writer already job hunting? I find it admirable that the question(s) they seem to be asking relates more to karma than their own financial security, but it seems to me that if I knew my employer was doing something shady with taxes, I would have a hard time remaining employed there. Sure, I could sue for wrongful termination or harassment (assuming either of those occurred), but it seems like that is more of a resume buzzkill than reporting tax irregularities would be. So I guess my point is ... the letter writer is looking for another job, right??

Come on Cary, please.

What country do you live in? Just do the right thing has long been supplanted in the US by Pad your wallet and Cover your ass.

You know as well as I do that if the LW does the right thing, he will be committing professional suicide.

No one wants to hire an accoutant who does the right thing. They want accountants who help them pad their wallets, and then cover their asses for them.

Just do the right thing? And then, will you be the one who feeds the LW's children?

Find out if you can get in trouble, then, if your boss is doing something illegal, take it to him and tell him about it. Or, if you hate him, stab him in the back and make sure he goes down with the ship. Do so anonymously and try to take control of his business. http://hilts-world.blogspot.com/ . And if you get control of that business, sell it off and move out of state and start anew.

that a person with access to personal information now wants to use that information against his boss is staggering - I hope this guy doesn't have access to personal medical records! I wonder if LW peaks into his neighbor's windows to see what they're up to!

If LW does not do anything and any sort of audit reveals the illegal accounting, LW will be held financially and legally responsible. LW will go to jail for boss's actions. LW, you are required to follow the law or face the consequences. That is your choice.

You must be honest: for your own soul and to protect yourself from being charged with tax fraud.

I agree that being self-interested isn't the greatest starting point for this question, but it shouldn't be ignored either. The IRS could find out through other means. If they do and the business goes south, the controller will be looking for another job.

Imagine the following interview:

"Why did you leave your last position?"

"The company went out of business after being investigated for tax evasion."

"Did you initiate the investigation?"

"No."

"Your role at this company was the controller and you didn't notice the accounting problems?"

The LW looks either unethical or stupid. Either way, it doesn't say a lot about his job skills if he finds a problem and doesn't say anything.

Throw his ass to the wolves. And tell the police his house is full of meth and kiddie porn too.

The LW is a comptroller for the company, not his boss. From the sound of it, the boss has ben cheating on his personal taxes. The company taxes are clean.

I agree with Cary that he needs to follow the rules of his profession as they apply to his job. And find a new job, pronto.

jf