EITC Noncompliance: The Determinants of the Misreporting of Children
Internal Revenue Service data indicate that $4.4 billion in excess EITC was claimed for tax year 1994, largely due to violations of the qualifying child eligibility criteria. I find that the probability of misreporting a child is increasing in the size of the EITC and tax benefit. The estimated effect of the EITC on noncompliance is statistically significant, but modest in size. Reducing the size and scope of the EITC could improve compliance somewhat, but it would also reduce benefits to compliant taxpayers. Efforts to reduce the frequency of unintentional errors and enhance the effectiveness of enforcement activities might bring about greater improvements in EITC error rates, at a lower cost to compliant taxpayers.
Volume (Year): 53 (2000)
Issue (Month): n. 4 (December)
|Contact details of provider:|| Postal: 725 15th St. NW #600. Washington, D.C. 20005-2109|
Fax: (202) 737-7308
Web page: http://www.ntanet.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jorge Martinez-Vazquez & Gordon B. Harwood & Ernest R. Larkins, 1992. "Withholding Position and Income Tax Compliance: Some Experimental Evidence," Public Finance Review, , vol. 20(2), pages 152-174, April.
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:53:y:2000:i:n._4:p:1135-64. 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: (Charmaine Wright)
If references are entirely missing, you can add them using this form.