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Econometric Models for Multi-Stage Audit Processes: An Application to the IRS National Research Program

Author

Listed:
  • Brian Erard

    (B. Erard & Associates)

  • Jonathan S. Feinstein

    (Yale School of Management)

Abstract

We develop an econometric methodology to control for errors in assessments that result from multi-stage audit processes. We then apply our methodology to data from a random sample of individual income tax audits collected under the Internal Revenue Service’s National Research Program to assess the extent to which noncompliance is successfully identified on various income line items of the tax return.

Suggested Citation

  • Brian Erard & Jonathan S. Feinstein, 2007. "Econometric Models for Multi-Stage Audit Processes: An Application to the IRS National Research Program," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0723, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper0723
    as

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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0723.pdf
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    References listed on IDEAS

    as
    1. Jonathan S. Feinstein, 1991. "An Econometric Analysis of Income Tax Evasion and its Detection," RAND Journal of Economics, The RAND Corporation, vol. 22(1), pages 14-35, Spring.
    2. James Alm & Brian Erard & Jonathan S. Feinstein, 1996. "The Relationship between State and Federal Tax Audits," NBER Chapters, in: Empirical Foundations of Household Taxation, pages 235-277, National Bureau of Economic Research, Inc.
    3. Erard, Brian, 1993. "Taxation with representation : An analysis of the role of tax practitioners in tax compliance," Journal of Public Economics, Elsevier, vol. 52(2), pages 163-197, September.
    4. Feinstein, Jonathan S, 1990. "Detection Controlled Estimation," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 233-276, April.
    5. Martin Feldstein & James M. Poterba, 1996. "Empirical Foundations of Household Taxation," NBER Books, National Bureau of Economic Research, Inc, number feld96-1, March.
    6. Feinstein, Jonathan S, 1989. "The Safety Regulation of U.S. Nuclear Power Plants: Violations, Inspections, and Abnormal Occurrences," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 115-154, February.
    Full references (including those not matched with items on IDEAS)

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