Published September 15, 2017
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An Empirical Analysis of Federal Income Tax Auditing and Compliance
- Creators
- Dubin, Jeffrey A.
- Wilde, Louis L.
Abstract
This paper provides empirical evidence on the relationship between compliance with the Federal Income Tax and auditing by the Internal Revenue Service. It combines a cross-section data set related to 1969 individual returns assembled by the IRS with data taken from the Annual Report of the Commissioner of Internal Revenue. We find strong support for an economic approach to tax compliance, but one that incorporates the IRS as a strategic actor. In particular, while audits may have a deterrent effect on noncompliance, we find that they are themselves, in the majority of cases, responsive to the pattern of compliance.
Additional Information
Revised. Original dated to October 1986. We would like to thank Bill Lefbom, Chairman of the TCMP committee of the IRS, for providing us with the 1969 IRS cross-section data set and helping us decipher it. Helpful comments have been provided by Dave Grether, Tom Gilligan, Rod Kiewiet, and especially Michael Graetz. This paper is a substantially revised version of Dubin and Wilde (1986). Published as Dubin, Jeffrey A., and Louis L. Wilde. "An empirical analysis of federal income tax auditing and compliance." National tax journal (1988): 61-74.Attached Files
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Additional details
- Eprint ID
- 81383
- Resolver ID
- CaltechAUTHORS:20170912-150755319
- Created
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2017-09-15Created from EPrint's datestamp field
- Updated
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2019-10-03Created from EPrint's last_modified field
- Caltech groups
- Social Science Working Papers
- Series Name
- Social Science Working Paper
- Series Volume or Issue Number
- 615