Advanced Search
MyIDEAS: Login to save this article or follow this journal

Do Individuals Comply on Income Not Reported by Their Employer?


Author Info

  • James Alm

    (Georgia State University)

  • John Deskins

    (Creighton University)

  • Michael McKee

    (Appalachian State University)


Individuals with income not reported to the tax authority by a third party (e.g., the self-employed, those earning tips) may be less likely to be detected evading taxes relative to the case in which their income is subject to third-party reporting. However, their compliance responses—to changes in the proportion of income that is reported to the tax authority, to changes in audit and tax rates, etc.—are largely unknown, in part because of the difficulty in obtaining information on individual choices in these situations. The authors use experimental methods to examine individual income tax compliance in settings where individuals differ in the portion of their income that is ``matched'' (reported to the tax authority via third-party information) versus ``nonmatched'' (not fully reported to the tax authority). The results indicate that individuals who have relatively more nonmatched income exhibit significantly lower tax compliance rates than individuals who earn relatively less nonmatched income.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by in its journal Public Finance Review.

Volume (Year): 37 (2009)
Issue (Month): 2 (March)
Pages: 120-141

as in new window
Handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:120-141

Contact details of provider:

Related research

Keywords: tax compliance; informal sector; experimental economics;


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Heinemann, Friedrich & Kocher, Martin G., 2010. "Tax compliance under tax regime changes," ZEW Discussion Papers 10-020, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, Elsevier, vol. 40(C), pages 1-19.
  3. James Alm & Todd Cherry & Michael McKee & Michael L. Jones, 2010. "Investigating Behavioral Responses to Positive Inducements for Filing Tax Returns," Working Papers, Department of Economics, Appalachian State University 10-11, Department of Economics, Appalachian State University.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:120-141. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.