Tax compliance: An investigation using individual taxpayer compliance measurement program (TCMP) data
In this paper, we analyze the tax compliance behavior of U.S. taxpayers by using a 1979 data set that combines information from a random sample of individual tax returns, each of which has been thoroughly audited, IRS administrative records, and sociodemographic data from the Census. We find evidenc...
| Authors: | ; ; |
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| Format: | Electronic Article |
| Language: | English |
| Published: |
1993
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| In: |
Journal of quantitative criminology
Year: 1993, Volume: 9, Issue: 2, Pages: 177-202 |
| Online Access: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
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| Check availability: | HBZ Gateway |
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| Summary: | In this paper, we analyze the tax compliance behavior of U.S. taxpayers by using a 1979 data set that combines information from a random sample of individual tax returns, each of which has been thoroughly audited, IRS administrative records, and sociodemographic data from the Census. We find evidence that both audits and tax code provisions affect compliance. However, the effects are significant for only low-and high-income groups. Interestingly, work on the underground economy also suggests that it is these two groups that are least compliant. Our results for audits suggest that the “ripple” or general deterrent effect of audits may be substantially larger than the direct revenue yield of audits for high-income taxpayers. Our results for allowable subtractions from income imply that the 1986 Tax Reform Act changes that lowered allowable subtractions may have procompliance effects. |
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| ISSN: | 1573-7799 |
| DOI: | 10.1007/BF01071167 |