Record Details

EFFECTS OF TAX AUDITING: DOES THE DETERRENT DETER?

Research Journal of Economics, Business and ICT

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Title EFFECTS OF TAX AUDITING: DOES THE DETERRENT DETER?
 
Creator Birskyte, Liucija; Mykolas Romeris University, Faculty of Economics and Financial Management, Vilnius
 
Subject —
Tax Evasion, Tax Compliance, Audits, Deterrence
H-11; H-26; H-30; H-83
 
Description The literature on tax compliance agrees that tax audits have two effects, direct and indirect. Direct effects of auditing are additional revenue collected as the result of a tax audit. Indirect effects refer to the deterrence effects, i.e. auditing deters potential tax evaders from cheating on their taxes. The research is based on the data from the USA. The objective of the paper is to determine (1) whether federal individual income tax audits are effective in improving voluntary tax compliance (2) whether the deterrent effects of those audits spill over to compliance with state individual income taxes. The results of multiple regression indicate that higher Internal Revenue Service (IRS) audit rates improve state individual income tax compliance. Other findings include evidence that opportunities to evade taxes, complexity of the tax code, as well as higher educational achievement are correlated with higher non-compliance.
 
Publisher English Time Schools & Overseas Education
 
Contributor —
 
Date 2013-12-15
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ojs.journals.cz/index.php/RJEBI/article/view/393
 
Source Research Journal of Economics, Business and ICT; Vol 8, No 2 (2013)
2047-7848
2045-3345
 
Language eng
 
Relation http://ojs.journals.cz/index.php/RJEBI/article/view/393/387
 
Rights Copyright (c) 2013 Liucija Birskyte
https://creativecommons.org/licenses/by/3.0/