Assume Joe is a bookkeeper for a medium-size business, with one of his
reponsibilities being to sign paychecks. Joe has just determined that
fringe benefits given to the top executive are not being included in
her W-2, so taxes cannot be levied. Further assume that this lack was
never a secret, but he is not a tax expert, and only recently learned
that such benefits were taxable.

Lastly, assume that Joe approached this executive and told her about the
requirements and asked to start disclosing them on his W-2, and the
executive instructed him to make no changes.

My question is:

What is Joe's legal liability if he continues as is, knowing that the boss
is underreporting her income and issuing the checks, but lacking the
authority to make changes? What is the legal responsibility of the
board of directors if it is unwilling to force the executive to start
paying taxes on the perks? Could the chief executive go to jail over this?

Please back up your answer with references to law or precedents.