The Hillary Affair and its Repercussions to the American Taxation System

American tax laws being as complex as they are, the tax return preparer is a key player in ensuring proper compliance, serving as a vital bridge between taxpayer and the Internal Revenue Service. Unfortunately, some of those entrusted with the task have willfully and intentionally fallen short of complying with the tax law standards with which the taxpayers and the IRS expect them to facilitate compliance. In 1953, sociologist Donald R. Cressey published a book entitled "Other People's Money," for which he interviewed California prisoners convicted of embezzlement (the work was republished in 1973). From his analysis of the interviews, Cressey developed what has become known as the "Fraud Triangle" theory which holds that embezzlement by trusted employees or professionals occurs in environments where Pressure, Opportunity, and Rationalization converge. It is easy to see how a "Fraud Triangle" situation might develop for a tax return preparer....(Read Full Post)