Essays on tax preparer impact on tax revenue collection and code compliance.

摘要

In Chapter 1, tax regulations and procedures have evolved into a complex system that requires professional training to ensure accurate completion of a federal tax return. Tax consultants continually update their knowledge to remain competitive. First, I discuss current tax policy, alternatives to the current system, and amendments to the current system. An exposition of the standards set by various professional organizations and the federal government for tax consultants follows.;In Chapters 2 and 3, the current tax evasion literature primarily investigates the relationship between the Internal Revenue Service and the taxpayer. Additional theoretical as well as empirical extensions into the impact that preparers have on taxpayer reporting behavior as well as governmental auditing are necessary. This dissertation develops an analytic model to investigate the relationship that tax preparers play in the tax reporting decision of taxpayers. The taxpayer and the tax agency play a sequential game where the taxpayer has the opportunity to seek advice about tax liability. The tax agency decides if an audit is appropriate. This dissertation solves the reporting and audit probabilities for the states of the world where advice is and is not available.;In Chapters 4 and 5, the empirical model investigates the evolving and important relationship that tax preparers play in the tax reporting decision of taxpayers. I use the 1994 Individual Public-Use Microdata File (IMF) to investigate why taxpayers seek the advice of tax professionals. I enhance the typical model with the inclusion of audit probabilities based on residence. The model also takes into consideration changes in the tax law since the Tax Revenue Act of 1986. The results based on employment status, age, marital status, and complexity. Tax law changes and audit probabilities also influence preparer use.