IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v58y2005i3p439-48.html
   My bibliography  Save this article

The Effects of Tax Software and Paid Preparers on Compliance Costs

Author

Listed:
  • Guyton, John L.
  • Korobow, Adam K.
  • Lee, Peter S.
  • Toder, Eric J.

Abstract

In recent years, the percentage of individual taxpayers using paid preparers and software has increased, while the share of taxpayers who self–prepare without software has dropped sharply. Using the Individual Taxpayer Burden Model developed by IBM Business Consulting Services for the IRS, we simulate the effects of preparation method on time and money costs of preparing tax returns. When we correct for self–selection bias, we find that each group on average selects the preparation method that costs the least for them. For example, software costs more than self–preparation for current self–preparers, but costs less than self–preparation for current software users.

Suggested Citation

  • Guyton, John L. & Korobow, Adam K. & Lee, Peter S. & Toder, Eric J., 2005. "The Effects of Tax Software and Paid Preparers on Compliance Costs," National Tax Journal, National Tax Association, vol. 58(3), pages 439-448, September.
  • Handle: RePEc:ntj:journl:v:58:y:2005:i:3:p:439-48
    as

    Download full text from publisher

    File URL: https://www.ntanet.org/NTJ/58/3/ntj-v58n03p439-48-effects-tax-software-paid.pdf
    Download Restriction: no

    File URL: https://www.ntanet.org/NTJ/58/3/ntj-v58n03p439-48-effects-tax-software-paid.html
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jagadeesh Gokhale & Kent Smetters, 2003. "Fiscal and generational imbalances: new budget measures for new budget priorities," Policy Discussion Papers, Federal Reserve Bank of Cleveland, issue Dec.
    2. Robert E. Hall & Charles I. Jones, 2007. "The Value of Life and the Rise in Health Spending," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 39-72.
    3. Charles I. Jones, 2002. "Why Have Health Expenditures as a Share fo GDP Risen So Much?," NBER Working Papers 9325, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Eichfelder, Sebastian & Hechtner, Frank, 2016. "Tax compliance costs: Cost burden and cost reliability," arqus Discussion Papers in Quantitative Tax Research 212, arqus - Arbeitskreis Quantitative Steuerlehre.
    2. Eichfelder, Sebastian & Vaillancourt, François, 2014. "Tax compliance costs: A review of cost burdens and cost structures," arqus Discussion Papers in Quantitative Tax Research 178, arqus - Arbeitskreis Quantitative Steuerlehre.
    3. Joseph Bankman & John Cogan & R. Glenn Hubbard & Daniel P. Kessler, 2012. "Reforming the Tax Preference for Employer Health Insurance," NBER Chapters,in: Tax Policy and the Economy, Volume 26, pages 43-58 National Bureau of Economic Research, Inc.
    4. Sebastian Eichfelder & François Vaillancourt, 2014. "Tax Compliance Costs: A Review of Cost Burdens and Cost Structures," Hacienda Pública Española, IEF, vol. 210(3), pages 111-148, September.
    5. Eichfelder, Sebastian & Schorn, Michael, 2009. "Tax compliance costs: a business administration perspective," Discussion Papers 2009/3, Free University Berlin, School of Business & Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:58:y:2005:i:3:p:439-48. 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: (Ann Crampton). General contact details of provider: http://edirc.repec.org/data/ntaaaea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.