EFFICIENT TAX REPORTING: THE EFFECTS OF TAXPAYER LIABILITY INFORMATION SERVICES.

The complexity of the individual income tax system can give rise to both under- and overreporting of liability, thus creating a wedge between taxpayer perceptions of the price of public services and their actual cost, and potentially leading to budget misallocations and associated efficiency losses....

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Publicado en:Economic Inquiry Vol. 55; no. 2; pp. 920 - 941
Autores principales: Vossler, Christian A., McKee, Michael
Formato: Artículo
Publicado: Wiley-Blackwell Apr2017
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: EFFICIENT TAX REPORTING: THE EFFECTS OF TAXPAYER LIABILITY INFORMATION SERVICES.
      aug:
        au:
          Vossler, Christian A.
          McKee, Michael
        affil:
          Professor, Department of Economics, Howard H. Baker Jr. Center for Public Policy, University of Tennessee, Knoxville TN 37996
          Professor, Department of Economics, Center for Economic Research and Policy Analysis, Appalachian State University, Boone NC 28608
      su:
        United States
        Income tax
        Municipal services
        Economics
        Tax assessment
        Tax administration & procedure
        Tax research
      sug:
        subj:
          Income tax
          Municipal services
          Economics
          United States
          Administration of Air and Water Resource and Solid Waste Management Programs
          Administration of Housing Programs
          Administration of Public Health Programs
          Other local, municipal and regional public administration
          Administration of Urban Planning and Community and Rural Development
          Public Finance Activities
          Tax assessment
          Tax administration & procedure
          Tax research
      ab: The complexity of the individual income tax system can give rise to both under- and overreporting of liability, thus creating a wedge between taxpayer perceptions of the price of public services and their actual cost, and potentially leading to budget misallocations and associated efficiency losses. This study uses theory and experiments to evaluate the effectiveness of taxpayer service programs that endeavor to resolve uncertainty over tax liability. To do so, we induce uncertainty over tax liability and investigate the effects of both service accuracy and reliability. We find participants are less likely to file when tax liability is uncertain but the provision of information offsets this effect; furthermore, it appears that simply providing a service, even one that imperfectly reveals liability, increases the propensity to file and the accuracy of the filing. When a service that promises to resolve uncertainty completely is requested but not delivered, the result is underreporting even more severe than in a setting where no service is available. ( JEL H2, H26, C91)
      pubtype: Academic Journal
      doctype: Article
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    language: English
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