The Effect of Tax Preparation Software on Tax Compliance: A Research Note

2014 ◽  
Vol 27 (1) ◽  
pp. 121-135 ◽  
Author(s):  
William D. Brink ◽  
Lorraine S. Lee
Keyword(s):  
Decision Making ◽  
Experimental Design ◽  
Income Tax ◽  
Tax Compliance ◽  
Research Note ◽  
State Income Tax ◽  
Tax Returns ◽  
State Income ◽  
Study Participants

ABSTRACT Tax software is commonly used in the preparation of U.S. federal and state income tax returns. A common feature of tax return preparation software is the prepayment-position status bar, which automatically calculates an updated refund/tax-due position. This paper examines whether the prepayment-position status bar, influences taxpayer decision making. This study utilizes a 2 × 2 experimental design, manipulating the taxpayers' prepayment position (refund/tax-due) and manipulating whether the prepayment-position status bar is present or absent. Using experienced taxpayers as study participants, the results of the experiment show that taxpayers are more aggressive when they are in a tax-due position compared to a refund position and that this effect is exaggerated when the tax software contains a prepayment-position status bar.

Book Reviews

2012 ◽  
Vol 50 (4) ◽  
pp. 1122-1126
Keyword(s):  
Los Angeles ◽  
Income Tax ◽  
Global Economy ◽  
Tax Compliance ◽  
The United States ◽  
State Revenue ◽  
Revenue Collection ◽  
State Income Tax ◽  
State Income

Brian Erard of B. Erard and Associates reviews, “The Causes and Consequences of Income Tax Noncompliance” by Jeffrey A. Dubin. The EconLit Abstract of this book begins: “Presents an empirical analysis of the federal and state revenue collection process in the United States, focusing on the causes of taxpayer noncompliance. Discusses the tax gap; recent patterns in IRS enforcement, economic theory and the literature; the Dubin Graetz Wilde model; the data; IRS criminal enforcement activities and taxpayer noncompliance; IRS criminal investigation—measuring the marginal monetary effect of criminal investment convictions; extensions to the period 2002–04; and state income tax compliance. Dubin is Adjunct Professor of Economics and Statistics in Global Economy and Management at the Anderson School of Management, University of California, Los Angeles. Bibliography; no index.”

scholarly journals Tingkat Kepatuhan Wajib Pajak UMKM Di Jawa Timur, Indonesia

2018 ◽  
Vol 10 (2) ◽  
pp. 88-108
Author(s):  
Setiadi Alim Lim ◽  
Lilik Indrawati
Keyword(s):  
Income Tax ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Large Contribution ◽  
Annual Income ◽  
Identification Number ◽  
The World ◽  
Tax Returns ◽  
State Income ◽  
Medium Enterprises

Micro, small and medium-sized enterprises play an important role in national economic development in many countries around the world. Micro, small and medium-sized enterprises have a large contribution to GDP (Gross Domestic Product), the supply of employment and exports of a country. Although it has a large contribution to the national economy, the contribution of micro, small and medium-sized enterprises to the state income from the tax sector is very small. There is a tendency for voluntary tax compliance from micro, small and medium- sized enterprises to be very low. This research aims to study the level of micro, small and medium-sized enterprises of tax compliance in East Java, Indonesia. To measure the level of tax compliance, 3 indicators are used, namely the ownership of the Taxpayer Identification Number (TIN), compliance with paying Income Tax and compliance to fill out and report the Annual Income Tax Return. The results showed that the level of tax compliance in micro, small and medium enterprises in East Java, Indonesia was still very low. Micro, small and medium-sized who have a Taxpayer Identification Number (TIN) is only 37.80%, those who pay Income Tax are only 21.95% and those who fill and report Annual Income Tax Returns of only 18,29%.

scholarly journals Tingkat Kepatuhan Wajib Pajak Umkm Di Jawa Timur, Indonesia

2019 ◽  
Vol 10 (2) ◽  
pp. 88-108
Author(s):  
Setiadi Alim Lim ◽  
Lilik Indrawati
Keyword(s):  
Income Tax ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Large Contribution ◽  
Annual Income ◽  
Identification Number ◽  
National Economic ◽  
Tax Returns ◽  
State Income ◽  
Medium Enterprises

Micro, small and medium-sized enterprises play an important role in national economic development in many countries around the world. Micro, small and medium-sized enterprises have a large contribution to GDP (Gross Domestic Product), the supply of employment and exports of a country. Although it has a large contribution to the national economy, the contribution of micro, small and medium-sized enterprises to the state income from the tax sector is very small. There is a tendency for voluntary tax compliance from micro, small and medium- sized enterprises to be very low. This research aims to study the level of micro, small and medium-sized enterprises of tax compliance in East Java, Indonesia. To measure the level of tax compliance, 3 indicators are used, namely the ownership of the Taxpayer Identification Number (TIN), compliance with paying Income Tax and compliance to fill out and report the Annual Income Tax Return. The results showed that the level of tax compliance in micro, small and medium enterprises in East Java, Indonesia was still very low. Micro, small and medium-sized who have a Taxpayer Identification Number (TIN) is only 37.80%, those who pay Income Tax are only 21.95% and those who fill and report Annual Income Tax Returns of only 18,29%.

State income tax reciprocity agreements and small businesses

2014 ◽  
Vol 3 (1) ◽  
pp. 118-140 ◽  
Author(s):  
Don Bruce ◽  
Jon C. Rork ◽  
Gary Wagner
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Income Tax ◽  
Tax Compliance ◽  
Entrepreneurial Activity ◽  
Business Activity ◽  
Personal Income Tax ◽  
Content Type ◽  
State Income Tax ◽  
State Income

Purpose – Small businesses play a vital role in job creation and economic growth, and previous studies have noted that higher state tax rates may reduce entrepreneurial activity, growth, and hiring. The paper aims to discuss this issue. Design/methodology/approach – In this paper, the authors use a 1989-2005 panel of state-level data to explore the effects of state income tax reciprocity agreements on several measures of small business activity. Since a reciprocity agreement exempts non-resident income from a state's personal income tax base, it has the potential to reduce barriers to entrepreneurial activity and lower tax compliance costs. Findings – The results indicate that reciprocity agreements appear to have reduced the tax-rate sensitivity of entrepreneurial activity, which may lead to more small business and entrepreneurial activity in states with more active agreements, other factors constant. This suggests that personal income tax reciprocity agreements may be a credible policy tool to expand small business activity. Originality/value – In this study, the paper sets out to determine if small business and entrepreneurial activity is greater in states that have reciprocity agreements and if such activity is dependent on the number of active agreements in place. Given recent nationwide efforts to ease compliance costs for business through other initiatives such as the Telecommuter Tax Fairness Act and the Streamlined Sales Tax Agreement, this study is the first to quantify how decreasing tax compliance and eliminating barriers to labor mobility affects small business activity. The results therefore have the potential to help shape debates in many states today.

Forecasting State Income Tax Collections: A New Approach

1978 ◽  
Vol 6 (1) ◽  
pp. 67-91 ◽  
Author(s):  
David M. Reaume
Keyword(s):  
North Carolina ◽  
Income Distribution ◽  
Income Tax ◽  
The State ◽  
New Approach ◽  
State Income Tax ◽  
State Income ◽  
Complete Detail ◽  
The Law

This paper reports on an application of the microsimulation method to the estimation of income tax collections for the State of North Carolina. Detailed forecasts of Income distribution make it Possible to model the law in nearly complete detail. The model provides quarterly forecasts of collections disaggregated by withheld taxes, declarations payments, final payments, and refunds.

scholarly journals A Treatise on the Taxing Power, with Particular Application to the State Income Tax

1937 ◽  
Vol 46 (7) ◽  
pp. 1275
Author(s):  
Osmond K. Fraenkel ◽  
Walter K. Tuller
Keyword(s):  
Income Tax ◽  
The State ◽  
State Income Tax ◽  
State Income

scholarly journals A Treatise on the Taxing Power with Particular Application to the State Income Tax

1937 ◽  
Vol 26 (1) ◽  
pp. 170
Author(s):  
Walter L. Nossaman ◽  
Walter K. Tuller
Keyword(s):  
Income Tax ◽  
The State ◽  
State Income Tax ◽  
State Income
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